Martingale Asset Management L P Reduces Stock Holdings in Automatic Data Processing, Inc. $ADP

Martingale Asset Management L P lowered its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 9.1% during the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 75,621 shares of the business services provider’s stock after selling 7,600 shares during the period. Martingale Asset Management L P’s holdings in Automatic Data Processing were worth $22,195,000 at the end of the most recent reporting period.

A number of other hedge funds have also added to or reduced their stakes in the stock. Howard Hughes Medical Institute purchased a new stake in shares of Automatic Data Processing in the 2nd quarter worth about $27,000. TruNorth Capital Management LLC purchased a new position in shares of Automatic Data Processing during the third quarter valued at about $28,000. Cloud Capital Management LLC purchased a new position in shares of Automatic Data Processing during the third quarter valued at about $29,000. Y.D. More Investments Ltd bought a new position in Automatic Data Processing in the third quarter worth about $32,000. Finally, AlphaQuest LLC bought a new position in Automatic Data Processing in the third quarter worth about $38,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Price Performance

Shares of NASDAQ ADP opened at $207.45 on Friday. Automatic Data Processing, Inc. has a fifty-two week low of $203.26 and a fifty-two week high of $329.93. The company has a 50 day simple moving average of $235.47 and a two-hundred day simple moving average of $260.90. The company has a market capitalization of $83.53 billion, a price-to-earnings ratio of 19.95 and a beta of 0.86. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current 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 (EPS) for the quarter, beating the consensus estimate of $2.57 by $0.05. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The firm had revenue of $5.36 billion during the quarter, compared to analyst estimates of $5.34 billion. During the same period last year, the business earned $2.35 earnings per share. The business’s revenue was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The business 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. The ex-dividend date is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a yield of 3.3%. Automatic Data Processing’s payout ratio is presently 65.38%.

Automatic Data Processing announced that its board has authorized a share repurchase plan on Wednesday, January 14th that permits the company to buyback $6.00 billion in shares. This buyback authorization permits the business services provider to purchase up to 5.8% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board believes its shares are undervalued.

Analyst Ratings Changes

A number of research analysts have weighed in on the company. Cantor Fitzgerald assumed coverage on Automatic Data Processing in a report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price on the stock. Wells Fargo & Company lowered their target price on 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. Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. JPMorgan Chase & Co. reduced their price target on 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. Finally, Morgan Stanley decreased their price objective on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a report on Thursday, January 29th. Two investment 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. Based on data from MarketBeat, Automatic Data Processing currently has a consensus rating of “Hold” and an average target price of $290.00.

Insider Buying and Selling

In other Automatic Data Processing news, VP David Foskett sold 266 shares of the business’s stock in a transaction on Thursday, February 5th. The stock was 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 of the company’s stock, valued at approximately $2,596,098. The trade was a 2.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Christopher D’ambrosio sold 543 shares of the stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total value of $142,423.47. Following the completion of the sale, the vice president directly owned 9,998 shares in the company, valued at approximately $2,622,375.42. This represents a 5.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 3,515 shares of company stock valued at $887,074. 0.20% of the stock is owned by insiders.

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.