Global X Japan Co. Ltd. Increases Holdings in Automatic Data Processing, Inc. $ADP

Global X Japan Co. Ltd. raised its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 256.6% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 25,121 shares of the business services provider’s stock after acquiring an additional 18,077 shares during the period. Global X Japan Co. Ltd.’s holdings in Automatic Data Processing were worth $6,462,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Imprint Wealth LLC bought a new position in Automatic Data Processing in the 3rd quarter worth about $25,000. Howard Hughes Medical Institute purchased a new position in Automatic Data Processing in the 2nd quarter worth approximately $27,000. TruNorth Capital Management LLC purchased a new stake in Automatic Data Processing during the 3rd quarter valued at $28,000. Cloud Capital Management LLC bought a new stake in shares of Automatic Data Processing in the 3rd quarter worth $29,000. Finally, Y.D. More Investments Ltd purchased a new position in shares of Automatic Data Processing in the third quarter worth $32,000. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Price Performance

Shares of NASDAQ:ADP opened at $204.51 on Friday. The firm’s 50 day moving average price is $224.94 and its 200-day moving average price is $254.36. Automatic Data Processing, Inc. has a twelve month low of $198.59 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 stock has a market capitalization of $82.34 billion, a PE ratio of 19.66 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last announced 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 company had revenue of $5.36 billion during the quarter, compared to analyst estimates of $5.34 billion. During the same period in the previous year, the business posted $2.35 earnings per share. The firm’s quarterly 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 expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Announces Dividend

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

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

Wall Street Analyst Weigh In

ADP has been the topic of a number of research analyst reports. Citigroup lowered their price target on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a report on Thursday, January 29th. Stifel Nicolaus lowered 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. Cantor Fitzgerald started coverage on shares of Automatic Data Processing in a report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 price target on the stock. Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research note on Thursday, January 29th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $288.46.

Insider Buying and Selling

In related news, VP David Foskett sold 266 shares of the business’s stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total transaction of $63,042.00. Following the completion of the transaction, the vice president directly owned 10,954 shares in the company, valued at approximately $2,596,098. The trade was a 2.37% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP David Kwon sold 900 shares of the firm’s stock in a transaction that occurred on Tuesday, January 6th. The stock was sold at an average price of $260.00, for a total transaction of $234,000.00. Following the sale, the vice president owned 11,993 shares in the company, valued at approximately $3,118,180. The trade was a 6.98% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 4,058 shares of company stock valued at $1,000,263 over the last three months. 0.20% of the stock is currently owned by company insiders.

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.