Insider Selling: Automatic Data Processing (NASDAQ:ADP) CEO Sells 29,810 Shares

Automatic Data Processing, Inc. (NASDAQ:ADP) CEO Maria Black sold 29,810 shares of Automatic Data Processing stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $280.91, for a total transaction of $8,373,927.10. Following the completion of the transaction, the chief executive officer owned 80,624 shares in the company, valued at approximately $22,648,087.84. The trade was a 26.99% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Automatic Data Processing Trading Up 0.8%

ADP stock traded up $2.37 during trading on Thursday, hitting $283.53. 2,206,926 shares of the company traded hands, compared to its average volume of 3,007,663. The firm has a market capitalization of $112.64 billion, a PE ratio of 25.92, a P/E/G ratio of 2.57 and a beta of 0.82. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $302.68. The company has a 50-day moving average of $259.94 and a 200-day moving average of $229.37. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The business had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.44 billion. During the same period last year, the company earned $2.26 EPS. Automatic Data Processing’s revenue for the quarter was up 6.8% compared to the same quarter last year. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Analysts predict that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th will be issued a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date is Friday, September 11th. Automatic Data Processing’s dividend payout ratio is currently 62.16%.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the stock. TD Cowen boosted their price objective on shares of Automatic Data Processing from $216.00 to $223.00 and gave the company a “hold” rating in a research report on Monday, July 6th. Morgan Stanley increased their target price on shares of Automatic Data Processing from $240.00 to $286.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. Weiss Ratings upgraded Automatic Data Processing from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, July 21st. Cantor Fitzgerald upped their price target on Automatic Data Processing from $295.00 to $310.00 and gave the company an “overweight” rating in a research report on Monday, August 3rd. Finally, Citigroup increased their price objective on Automatic Data Processing from $230.00 to $287.00 and gave the stock a “neutral” rating in a report on Thursday, July 30th. Three investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $273.50.

Institutional Investors Weigh In On Automatic Data Processing

Several institutional investors and hedge funds have recently modified their holdings of the stock. Brighton Jones LLC boosted its position in Automatic Data Processing by 92.1% during the 4th quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider’s stock valued at $2,935,000 after acquiring an additional 4,808 shares in the last quarter. Bison Wealth LLC lifted its stake in shares of Automatic Data Processing by 22.8% in the 4th quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider’s stock valued at $1,073,000 after purchasing an additional 681 shares during the period. Schnieders Capital Management LLC. lifted its stake in shares of Automatic Data Processing by 21.8% in the 2nd quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider’s stock valued at $388,000 after purchasing an additional 225 shares during the period. Osterweis Capital Management Inc. bought a new stake in shares of Automatic Data Processing during the second quarter valued at approximately $108,000. Finally, Diversify Advisory Services LLC boosted its position in shares of Automatic Data Processing by 17.5% during the second quarter. Diversify Advisory Services LLC now owns 5,477 shares of the business services provider’s stock valued at $1,641,000 after purchasing an additional 815 shares in the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Automatic Data Processing

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

• Positive Sentiment: Defensive dividend appeal: ADP was highlighted as a high-quality dividend stock with more than 25 consecutive years of annual dividend increases. Its recurring payroll and human-resources revenue model may attract investors seeking stability and income. 3 of Wall Street’s Safest High-Yield Dividend Stocks
• Positive Sentiment: Potentially supportive rate expectations: August private-sector hiring was weaker than anticipated, which contributed to a softer U.S. dollar and could reinforce expectations for Federal Reserve easing. Lower rates can support valuation multiples for large, cash-generative companies such as ADP. U.S. Dollar Slides Amid Softer ADP Data
• Neutral Sentiment: ADP’s August report: The company’s National Employment Report showed private-sector employment increased by 38,000 jobs, while base pay rose 3.2% and gross pay increased 4.7%. The report strengthens ADP’s visibility as a labor-market data provider but is not a direct measure of its payroll revenue. ADP National Employment Report
• Neutral Sentiment: Analyst stance remains cautious: Coverage says ADP has lagged the broader market and technology sector over the past year, with analysts maintaining a generally neutral outlook. Another analysis described the shares as approximately 1% undervalued based on fresh labor data, suggesting limited near-term valuation upside. Is ADP Underperforming the Technology Sector?
• Negative Sentiment: Hiring missed expectations: The 38,000 increase in private payrolls fell short of the 47,000 forecast and the prior month’s 44,000 gain. Continued labor-market cooling could eventually slow demand for ADP’s employer services and keeps the company’s macro-sensitive investment narrative under pressure. ADP Brings 38K Private-Sector Jobs in August
• Negative Sentiment: Broader market risks: Weekly jobless claims increased marginally, while bond yields and oil prices rose amid mixed premarket trading and scheduled Federal Reserve speakers. Higher yields can pressure the valuation of dividend-oriented stocks, offsetting some benefit from weaker-rate expectations. Weekly Jobless Claims Increase Marginally

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.