Korea Investment CORP Sells 37,703 Shares of Automatic Data Processing, Inc. $ADP

Korea Investment CORP reduced its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 10.6% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 316,637 shares of the business services provider’s stock after selling 37,703 shares during the period. Korea Investment CORP owned about 0.08% of Automatic Data Processing worth $92,933,000 at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in the business. PGIM Custom Harvest LLC increased its holdings in shares of Automatic Data Processing by 4.9% in the second quarter. PGIM Custom Harvest LLC now owns 722 shares of the business services provider’s stock worth $223,000 after purchasing an additional 34 shares during the last quarter. Texas Yale Capital Corp. boosted its stake in Automatic Data Processing by 0.4% during the second quarter. Texas Yale Capital Corp. now owns 8,333 shares of the business services provider’s stock valued at $2,570,000 after buying an additional 35 shares during the last quarter. Heritage Wealth Management Inc. grew its holdings in Automatic Data Processing by 1.1% during the 2nd quarter. Heritage Wealth Management Inc. now owns 3,340 shares of the business services provider’s stock valued at $1,030,000 after buying an additional 35 shares in the last quarter. Fairvoy Private Wealth LLC grew its holdings in Automatic Data Processing by 4.2% during the 3rd quarter. Fairvoy Private Wealth LLC now owns 863 shares of the business services provider’s stock valued at $253,000 after buying an additional 35 shares in the last quarter. Finally, Wealthspire Advisors LLC increased its stake in Automatic Data Processing by 0.4% in the 2nd quarter. Wealthspire Advisors LLC now owns 9,335 shares of the business services provider’s stock worth $2,879,000 after acquiring an additional 36 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of research analysts have recently commented on ADP shares. Cantor Fitzgerald began coverage on Automatic Data Processing in a research report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price for the company. JPMorgan Chase & Co. reduced 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 report on Thursday, January 29th. Jefferies Financial Group reaffirmed 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. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Finally, Wells Fargo & Company dropped their price objective on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company 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 assigned a Sell rating to the stock. According to MarketBeat.com, Automatic Data Processing currently has an average rating of “Hold” and an average price target of $290.00.

Insider Activity

In other news, VP David Kwon sold 900 shares of the stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total value of $234,000.00. Following the sale, the vice president owned 11,993 shares of the company’s stock, valued at approximately $3,118,180. This represents a 6.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Brian L. Michaud sold 1,000 shares of the firm’s stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction of $234,180.00. Following the completion of the sale, the vice president owned 15,310 shares of the company’s stock, valued at $3,585,295.80. This trade represents a 6.13% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 3,515 shares of company stock worth $887,074. 0.20% of the stock is currently owned by insiders.

Automatic Data Processing Price Performance

NASDAQ:ADP opened at $226.29 on Friday. The firm has a market capitalization of $91.11 billion, a price-to-earnings ratio of 21.76 and a beta of 0.86. Automatic Data Processing, Inc. has a 1 year low of $203.26 and a 1 year high of $329.93. The business has a 50 day simple moving average of $238.92 and a 200-day simple moving average of $263.15. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03.

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

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be paid 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%.

Automatic Data Processing declared that its Board of Directors has initiated a stock buyback plan on Wednesday, January 14th that allows the company to buyback $6.00 billion in shares. This buyback authorization allows the business services provider to reacquire up to 5.8% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.

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.