Quantbot Technologies LP Acquires Shares of 4,450 Automatic Data Processing, Inc. $ADP

Quantbot Technologies LP bought a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP) during the 3rd quarter, Holdings Channel reports. The firm bought 4,450 shares of the business services provider’s stock, valued at approximately $1,306,000.

Other institutional investors have also modified their holdings of the company. Howard Hughes Medical Institute acquired a new stake in shares of Automatic Data Processing during the second quarter worth $27,000. TruNorth Capital Management LLC acquired a new position in Automatic Data Processing in the 3rd quarter valued at $28,000. Cloud Capital Management LLC purchased a new position in Automatic Data Processing during the 3rd quarter worth $29,000. Y.D. More Investments Ltd acquired a new stake in shares of Automatic Data Processing in the 3rd quarter worth $32,000. Finally, AlphaQuest LLC purchased a new stake in shares of Automatic Data Processing in the third quarter valued at about $38,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

Automatic Data Processing Stock Up 2.6%

Automatic Data Processing stock opened at $222.70 on Friday. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. The firm has a market capitalization of $89.67 billion, a price-to-earnings ratio of 21.41 and a beta of 0.86. Automatic Data Processing, Inc. has a fifty-two week low of $203.26 and a fifty-two week high of $329.93. The stock’s fifty day moving average is $239.57 and its two-hundred day moving average is $263.98.

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

Automatic Data Processing Announces Dividend

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

Automatic Data Processing announced that its board has approved a share repurchase plan on Wednesday, January 14th that authorizes the company to buyback $6.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to buy up to 5.8% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on ADP shares. Jefferies Financial Group reiterated an “underperform” rating and set a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Morgan Stanley cut their target price on 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. Citigroup reduced their price target on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a report on Thursday, January 29th. JPMorgan Chase & Co. dropped their price objective 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. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Two analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $290.00.

Insider Buying and Selling at Automatic Data Processing

In related news, VP David Kwon sold 806 shares of the company’s stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $264.80, for a total value of $213,428.80. Following the sale, the vice president owned 11,187 shares of the company’s stock, valued at approximately $2,962,317.60. This represents a 6.72% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Christopher D’ambrosio sold 543 shares of the stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total value of $142,423.47. Following the sale, the vice president owned 9,998 shares in the company, valued at approximately $2,622,375.42. This trade represents a 5.15% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 3,515 shares of company stock valued at $887,074 over the last three months. Company insiders own 0.20% of the company’s stock.

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.