Caprock Group LLC Makes New $9.04 Million Investment in Automatic Data Processing, Inc. $ADP

Caprock Group LLC purchased a new position in Automatic Data Processing, Inc. (NASDAQ:ADP) in the third quarter, according to its most recent disclosure with the SEC. The institutional investor purchased 29,739 shares of the business services provider’s stock, valued at approximately $9,042,000.

Other hedge funds have also made changes to their positions in the company. ING Groep NV raised its holdings in Automatic Data Processing by 49.1% during the third quarter. ING Groep NV now owns 273,487 shares of the business services provider’s stock worth $80,268,000 after purchasing an additional 90,073 shares in the last quarter. Krilogy Financial LLC bought a new position in Automatic Data Processing during the 3rd quarter valued at $314,000. Stratos Wealth Partners LTD. increased its position in shares of Automatic Data Processing by 2.1% during the 3rd quarter. Stratos Wealth Partners LTD. now owns 59,484 shares of the business services provider’s stock valued at $17,459,000 after purchasing an additional 1,197 shares during the period. Stratos Investment Management LLC raised its stake in shares of Automatic Data Processing by 3.3% in the 3rd quarter. Stratos Investment Management LLC now owns 2,052 shares of the business services provider’s stock worth $602,000 after buying an additional 65 shares in the last quarter. Finally, MQS Management LLC acquired a new stake in shares of Automatic Data Processing in the third quarter valued at $528,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Christopher D’ambrosio sold 543 shares of the firm’s stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total transaction of $142,423.47. Following the completion of the sale, the vice president directly owned 9,998 shares in the company, valued at approximately $2,622,375.42. This trade represents a 5.15% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP David Foskett sold 266 shares of the company’s stock in a transaction dated Thursday, February 5th. The shares were sold at an average price of $237.00, for a total value of $63,042.00. Following the completion of the transaction, the vice president owned 10,954 shares in the company, valued at $2,596,098. This represents a 2.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 3,515 shares of company stock valued at $887,074 in the last 90 days. Insiders own 0.20% of the company’s stock.

Automatic Data Processing Price Performance

ADP stock opened at $225.53 on Wednesday. Automatic Data Processing, Inc. has a one year low of $223.44 and a one year high of $329.93. The firm has a 50-day moving average of $255.39 and a two-hundred day moving average of $274.17. The firm has a market capitalization of $90.81 billion, a PE ratio of 21.69 and a beta of 0.85. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, beating the consensus estimate of $2.57 by $0.05. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The business had revenue of $5.36 billion during the quarter, compared to the consensus estimate of $5.34 billion. During the same quarter in the prior year, the firm earned $2.35 EPS. The firm’s quarterly revenue was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, analysts forecast that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing declared that its board has authorized a share buyback program on Wednesday, January 14th that authorizes the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to purchase up to 5.8% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s management believes its stock is undervalued.

Automatic Data Processing Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be given a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s payout ratio is presently 65.38%.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on ADP. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Stifel Nicolaus lowered their price objective on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a research note on Monday. Morgan Stanley cut their target price on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research note on Thursday, January 29th. Jefferies Financial Group restated an “underperform” rating and issued a $230.00 price target (down previously from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Finally, JPMorgan Chase & Co. dropped their price target on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a report on Thursday, January 29th. Two analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $290.00.

Key Automatic Data Processing News

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: ADP’s weekly National Employment Report showed U.S. private employers added about 6,500 jobs per week (four weeks ending Jan. 24), supporting continued demand for payroll and HCM services. This macro data can be constructive for ADP’s revenue mix and recurring revenue stream. ADP National Employment Report Preliminary Estimate for January 24, 2026
• Positive Sentiment: ADP’s most recent quarterly results beat on EPS and revenue, and management provided FY2026 EPS guidance in the ~10.09–11.01 range — a sign of continued profitable growth and clear near‑term visibility. That underlying beat/guidance supports longer‑term cash generation.
• Positive Sentiment: The board has authorized a large buyback (≈$6.0B) and ADP maintains a healthy dividend (quarterly $1.70 / ~3% yield), which support shareholder returns and can provide backstop to the share price.
• Neutral Sentiment: Large institutional ownership and recent reported position changes (MarketBeat summary) show ADP remains a widely held, index/ETF‑embedded large cap — this magnifies flows but also dampens volatility from retail noise.
• Negative Sentiment: Short interest rose in late January to ~8.9M shares (about 2.2% of float) with a ~3.2 days-to-cover — increased shorting can pressure the stock if negative catalysts continue or if sentiment weakens. (Note: a February short-interest entry in the feed appears erroneous and should be treated with caution.)
• Negative Sentiment: Recent insider selling by senior VPs (small blocks: 266 and 1,000 shares reported) and headlines calling out larger insider reductions drew attention — while sizes are modest vs. total insider holdings, such disclosures can amplify near‑term investor caution. Insider Selling: Automatic Data Processing (NASDAQ:ADP) VP Sells 266 Shares of Stock
• Negative Sentiment: Stifel trimmed its price target (from $280 to $270) and maintains a hold — analyst downgrades/target cuts can exert downward pressure on sentiment and make the stock less attractive for momentum buyers. Benzinga

About Automatic Data Processing

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP’s product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.