Automatic Data Processing, Inc. $ADP Shares Bought by Capital Research Global Investors

Capital Research Global Investors grew its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 1.5% in the 3rd quarter, Holdings Channel reports. The fund owned 8,021,194 shares of the business services provider’s stock after acquiring an additional 116,074 shares during the period. Capital Research Global Investors’ holdings in Automatic Data Processing were worth $2,354,220,000 as of its most recent SEC filing.

Other hedge funds have also made changes to their positions in the company. Vanguard Group Inc. lifted its stake in Automatic Data Processing by 0.9% during the third quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider’s stock worth $12,235,907,000 after purchasing an additional 389,451 shares during the last quarter. State Street Corp boosted its position in shares of Automatic Data Processing by 1.0% during the second quarter. State Street Corp now owns 18,782,407 shares of the business services provider’s stock worth $5,820,445,000 after buying an additional 187,415 shares during the period. Geode Capital Management LLC raised its holdings in shares of Automatic Data Processing by 3.1% in the 2nd quarter. Geode Capital Management LLC now owns 11,388,935 shares of the business services provider’s stock worth $3,511,698,000 after purchasing an additional 345,798 shares in the last quarter. Laurel Wealth Advisors LLC boosted its holdings in Automatic Data Processing by 30,110.7% during the second quarter. Laurel Wealth Advisors LLC now owns 4,668,758 shares of the business services provider’s stock worth $1,439,845,000 after buying an additional 4,653,304 shares in the last quarter. Finally, Invesco Ltd. grew its position in Automatic Data Processing by 13.5% in the second quarter. Invesco Ltd. now owns 4,576,681 shares of the business services provider’s stock worth $1,411,449,000 after buying an additional 544,968 shares during the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.

Wall Street Analyst Weigh In

ADP has been the subject of several research reports. Cantor Fitzgerald assumed coverage on Automatic Data Processing in a research note on Tuesday, January 27th. They set an “overweight” rating and a $306.00 price objective for the company. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Citigroup reduced their price objective on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a report on Thursday, January 29th. Jefferies Financial Group restated an “underperform” rating and set a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Finally, Stifel Nicolaus reduced their target price 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, February 9th. Two investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $290.00.

Automatic Data Processing Trading Down 1.4%

Shares of NASDAQ ADP opened at $223.04 on Tuesday. The stock has a market cap of $89.80 billion, a price-to-earnings ratio of 21.45 and a beta of 0.86. Automatic Data Processing, Inc. has a twelve month low of $203.26 and a twelve month high of $329.93. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. The company’s fifty day moving average is $238.19 and its 200-day moving average is $262.25.

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 for the quarter, beating analysts’ consensus estimates 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 during the quarter, compared to the consensus estimate of $5.34 billion. During the same period last year, the company earned $2.35 earnings per share. The business’s revenue 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 research analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Announces Dividend

The firm 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 $1.70 dividend. The ex-dividend date is Friday, March 13th. This represents a $6.80 annualized dividend and a yield of 3.0%. Automatic Data Processing’s dividend payout ratio is currently 65.38%.

Automatic Data Processing announced that its board has authorized a share repurchase plan 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 repurchase up to 5.8% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In related news, VP David Kwon sold 806 shares of the business’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 transaction of $213,428.80. Following the transaction, the vice president directly owned 11,187 shares of the company’s stock, valued at approximately $2,962,317.60. The trade was a 6.72% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Brian L. Michaud sold 1,000 shares of the firm’s stock in a transaction on Friday, February 6th. The shares were sold at an average price of $234.18, for a total value of $234,180.00. Following the sale, the vice president directly owned 15,310 shares of the company’s stock, valued at $3,585,295.80. This represents a 6.13% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 3,515 shares of company stock valued at $887,074. Corporate insiders own 0.20% of the company’s stock.

Automatic Data Processing Company 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.