Automatic Data Processing, Inc. $ADP Shares Purchased by Varma Mutual Pension Insurance Co

Varma Mutual Pension Insurance Co grew its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 8.8% in the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 69,053 shares of the business services provider’s stock after buying an additional 5,600 shares during the quarter. Varma Mutual Pension Insurance Co’s holdings in Automatic Data Processing were worth $20,267,000 at the end of the most recent quarter.

A number of other hedge funds have also made changes to their positions in the business. Mid American Wealth Advisory Group Inc. purchased a new stake in Automatic Data Processing during the 2nd quarter worth $26,000. Harbor Asset Planning Inc. purchased a new position in Automatic Data Processing in the second quarter valued at about $26,000. Howard Hughes Medical Institute acquired a new position in shares of Automatic Data Processing during the second quarter worth about $27,000. Solstein Capital LLC acquired a new position in shares of Automatic Data Processing during the second quarter worth about $28,000. Finally, Westside Investment Management Inc. boosted its position in shares of Automatic Data Processing by 80.0% in the second quarter. Westside Investment Management Inc. now owns 90 shares of the business services provider’s stock worth $28,000 after buying an additional 40 shares during the period. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Stock Down 3.5%

ADP stock opened at $217.57 on Thursday. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. The firm has a 50 day simple moving average of $254.54 and a 200-day simple moving average of $273.77. The company has a market capitalization of $87.60 billion, a P/E ratio of 20.92 and a beta of 0.85. Automatic Data Processing, Inc. has a twelve month low of $216.65 and a twelve month high of $329.93.

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

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

Automatic Data Processing Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be paid a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is 65.38%.

Insider Transactions at Automatic Data Processing

In other news, VP Brian L. Michaud sold 1,000 shares of the business’s stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $234.18, for a total value of $234,180.00. Following the completion of the sale, the vice president directly owned 15,310 shares in the company, valued at approximately $3,585,295.80. The trade was a 6.13% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP David Foskett sold 266 shares of the company’s stock in a transaction that occurred on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total value of $63,042.00. Following the sale, the vice president directly owned 10,954 shares in the company, valued at approximately $2,596,098. This represents a 2.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 3,515 shares of company stock valued at $887,074 over the last ninety days. 0.20% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on ADP shares. Morgan Stanley dropped their target price on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a report on Thursday, January 29th. Jefferies Financial Group reaffirmed an “underperform” rating and issued a $230.00 price objective (down previously from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Cantor Fitzgerald began coverage on shares of Automatic Data Processing in a research report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price on the stock. Stifel Nicolaus lowered their price target on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a report on Monday. Finally, JPMorgan Chase & Co. dropped their price target on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research note on Thursday, January 29th. Two analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $290.00.

Automatic Data Processing Profile

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.