Chevy Chase Trust Holdings LLC Cuts Stock Position in Automatic Data Processing, Inc. $ADP

Chevy Chase Trust Holdings LLC trimmed its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 3.3% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 224,013 shares of the business services provider’s stock after selling 7,743 shares during the quarter. Chevy Chase Trust Holdings LLC owned approximately 0.06% of Automatic Data Processing worth $65,748,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in ADP. Imprint Wealth LLC purchased a new stake in Automatic Data Processing in the 3rd quarter worth $25,000. Howard Hughes Medical Institute purchased a new position in Automatic Data Processing during the second quarter valued at $27,000. TruNorth Capital Management LLC acquired a new stake in shares of Automatic Data Processing in the third quarter valued at about $28,000. Cloud Capital Management LLC purchased a new stake in shares of Automatic Data Processing during the third quarter worth about $29,000. Finally, Y.D. More Investments Ltd purchased a new stake in shares of Automatic Data Processing during the third quarter worth about $32,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP David Kwon sold 900 shares of the stock in a transaction dated Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total transaction of $234,000.00. Following the completion of the transaction, the vice president owned 11,993 shares of the company’s stock, valued at $3,118,180. This trade represents a 6.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP David Foskett sold 266 shares of the business’s stock in a transaction that occurred on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction of $63,042.00. Following the completion of the sale, the vice president directly owned 10,954 shares in the company, valued at $2,596,098. This trade represents a 2.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 3,515 shares of company stock worth $887,074. 0.20% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on ADP. Citigroup decreased their price target on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research note on Thursday, January 29th. 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. JPMorgan Chase & Co. reduced their target price on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a report on Thursday, January 29th. Morgan Stanley decreased their target price on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research report on Thursday, January 29th. Finally, Stifel Nicolaus lowered their price target on 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 issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $290.00.

Automatic Data Processing Trading Up 0.5%

Shares of Automatic Data Processing stock opened at $208.52 on Monday. The firm has a market capitalization of $83.96 billion, a price-to-earnings ratio of 20.05 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 company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. The stock has a 50 day moving average of $234.58 and a 200 day moving average of $259.63.

Automatic Data Processing (NASDAQ:ADP) last posted its earnings results on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, beating analysts’ consensus estimates of $2.57 by $0.05. The company had revenue of $5.36 billion for 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 company’s revenue for the quarter was up 6.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, research analysts predict that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing declared that its board has approved a share repurchase program on Wednesday, January 14th that permits the company to buyback $6.00 billion in outstanding shares. This buyback authorization permits the business services provider to purchase up to 5.8% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s leadership believes its shares are undervalued.

Automatic Data Processing Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be given a $1.70 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a yield of 3.3%. Automatic Data Processing’s dividend payout ratio is presently 65.38%.

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.