David Kwon Sells 2,414 Shares of Automatic Data Processing (NASDAQ:ADP) Stock

Key Points

• ADP VP David Kwon sold 2,414 shares for approximately $641,207 under a pre-arranged Rule 10b5-1 trading plan, reducing his holdings by nearly 20% to 9,660 shares.
• ADP exceeded quarterly expectations with $2.64 in EPS and $5.47 billion in revenue, while revenue rose 6.8% year over year. The company issued fiscal 2027 EPS guidance of $12.12–$12.34.
• Analysts raised several price targets following the results, but overall sentiment remains cautious: ADP has a consensus “Hold” rating and an average target price of $272.43, compared with a recent share price of $266.46.

Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) VP David Kwon sold 2,414 shares of the stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $265.62, for a total transaction of $641,206.68. Following the completion of the sale, the vice president owned 9,660 shares in the company, valued at $2,565,889.20. This represents a 19.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Automatic Data Processing Price Performance

NASDAQ:ADP traded up $2.59 during trading hours on Friday, hitting $266.46. The stock had a trading volume of 2,462,359 shares, compared to its average volume of 3,153,911. The company has a 50 day simple moving average of $235.06 and a two-hundred day simple moving average of $224.30. The firm has a market capitalization of $106.51 billion, a price-to-earnings ratio of 24.36 and a beta of 0.83. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.04. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year high of $315.26.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, topping the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The firm had revenue of $5.47 billion for the quarter, compared to analysts' expectations of $5.44 billion. During the same quarter in the prior year, the firm posted $2.26 earnings per share. The business's quarterly revenue was up 6.8% on a year-over-year basis. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Research analysts forecast that Automatic Data Processing, Inc. will post 12.22 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. Stifel Nicolaus lifted their price target on Automatic Data Processing from $260.00 to $285.00 and gave the company a "hold" rating in a research report on Thursday. Guggenheim upped their price objective on shares of Automatic Data Processing from $270.00 to $300.00 and gave the stock a "buy" rating in a research report on Thursday. Morgan Stanley raised their target price on shares of Automatic Data Processing from $240.00 to $286.00 and gave the company an "equal weight" rating in a research note on Thursday. Weiss Ratings raised shares of Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, July 21st. Finally, Cantor Fitzgerald increased their price target on shares of Automatic Data Processing from $244.00 to $295.00 and gave the stock an "overweight" rating in a report on Wednesday, July 22nd. Three equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $272.43.

Trending Headlines about Automatic Data Processing

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

• Positive Sentiment: ADP reported adjusted earnings of $2.64 per share and revenue of $5.47 billion, exceeding consensus estimates of $2.59 and $5.44 billion, respectively. Revenue increased 6.8% year over year, while management issued fiscal 2027 EPS guidance of $12.12-$12.34. ADP’s Q2 CY2026 sales beat estimates
• Positive Sentiment: Analyst sentiment improved after the results. BMO Capital Markets raised its price target to $305 from $248 while maintaining a market-perform rating, and Guggenheim lifted its target to $300 and upgraded the stock to buy. Citi, Morgan Stanley, Stifel, and Wells Fargo also raised their targets into the $283-$287 range, although they retained neutral or hold-equivalent ratings. BMO raises ADP price target
• Positive Sentiment: A new buy recommendation describes ADP as an attractive technology and business-services company, potentially reinforcing investor confidence in its recurring payroll and human-resources software revenue. New buy recommendation for ADP
• Neutral Sentiment: Commentary remains mixed on valuation. Some analysts view the post-earnings move as having closed ADP’s valuation discount, while others consider the stock reasonable after its approximately 44% five-year gain. ADP post-earnings valuation analysis
• Negative Sentiment: The stock initially declined after earnings despite the beat, suggesting investors may have taken profits or wanted stronger guidance and growth acceleration. The post-earnings dip remains a risk for short-term trading, even as long-term analysts debate whether it represents a buying opportunity. Should investors buy ADP on the post-earnings dip?

Hedge Funds Weigh In On Automatic Data Processing

A number of large investors have recently added to or reduced their stakes in ADP. Regent Peak Wealth Advisors LLC boosted its holdings in Automatic Data Processing by 3.4% during the 2nd quarter. Regent Peak Wealth Advisors LLC now owns 2,121 shares of the business services provider's stock valued at $475,000 after acquiring an additional 69 shares during the period. Bank & Trust Co boosted its stake in shares of Automatic Data Processing by 1.3% during the second quarter. Bank & Trust Co now owns 3,908 shares of the business services provider's stock valued at $875,000 after purchasing an additional 50 shares during the period. Annex Advisory Services LLC grew its holdings in shares of Automatic Data Processing by 3.9% in the second quarter. Annex Advisory Services LLC now owns 2,947 shares of the business services provider's stock worth $660,000 after purchasing an additional 111 shares during the last quarter. Whitener Capital Management Inc. purchased a new position in shares of Automatic Data Processing in the second quarter worth $207,000. Finally, Tema ETFs LLC boosted its position in Automatic Data Processing by 9.3% during the 2nd quarter. Tema ETFs LLC now owns 6,837 shares of the business services provider's stock valued at $1,531,000 after buying an additional 580 shares during the period. Hedge funds and other institutional investors own 80.03% 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.

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