30,402 Automatic Data Processing, Inc. $ADP Shares Sold by D.A. Davidson & CO.

Key Points

• D.A. Davidson & Co. reduced its ADP position by 8.0%, selling 30,402 shares during the third quarter and retaining 349,242 shares valued at approximately $90.1 million.
• Institutional ownership remains substantial, with investors and hedge funds holding 80.03% of ADP’s outstanding shares; several major institutions, including BlackRock and Bank of America, recently established positions.
• ADP exceeded quarterly expectations with earnings of $2.82 per share and revenue of $5.49 billion, while paying a $1.70 quarterly dividend. Analysts remain mixed, with a consensus rating of “Hold” and an average price target of $280.64.

D.A. Davidson & CO. cut its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 8.0% during the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 349,242 shares of the business services provider's stock after selling 30,402 shares during the quarter. D.A. Davidson & CO.'s holdings in Automatic Data Processing were worth $90,126,000 at the end of the most recent quarter.

A number of other institutional investors also recently made changes to their positions in the business. BlackRock Inc. purchased a new position in shares of Automatic Data Processing during the 2nd quarter valued at approximately $8,097,229,000. Bank of America Corp DE bought a new position in shares of Automatic Data Processing during the second quarter worth about $1,231,175,000. Deutsche Bank AG acquired a new position in Automatic Data Processing in the second quarter worth about $994,937,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in Automatic Data Processing by 3.1% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,251,447 shares of the business services provider's stock valued at $952,112,000 after buying an additional 129,376 shares during the last quarter. Finally, Bank of New York Mellon Corp bought a new position in Automatic Data Processing during the 2nd quarter worth approximately $725,513,000. 80.03% of the stock is owned by institutional investors and hedge funds.

Automatic Data Processing Stock Performance

ADP opened at $285.37 on Thursday. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82. The business's 50 day moving average is $276.79 and its 200-day moving average is $240.57. The stock has a market cap of $113.08 billion, a PE ratio of 26.09, a price-to-earnings-growth ratio of 2.75 and a beta of 0.83. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $309.40.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The business services provider reported $2.82 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.77 by $0.05. The business had revenue of $5.49 billion during the quarter, compared to analyst estimates of $5.48 billion. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%. The business's revenue for the quarter was up 6.1% compared to the same quarter last year. During the same period in the prior year, the company posted $2.49 EPS. On average, analysts predict that Automatic Data Processing, Inc. will post 12.27 earnings per share for the current year.

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Friday, September 11th were given a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date was Friday, September 11th. Automatic Data Processing's payout ratio is 62.16%.

Wall Street Analysts Forecast Growth

A number of research firms have commented on ADP. Weiss Ratings raised shares of Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, September 22nd. 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. UBS Group increased their price objective on shares of Automatic Data Processing from $260.00 to $270.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 22nd. BMO Capital Markets lifted their target price on Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a research note on Wednesday, July 29th. Finally, Jefferies Financial Group increased their price target on Automatic Data Processing from $225.00 to $250.00 and gave the stock an "underperform" rating in a research report on Wednesday. Three research analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $280.64.

Automatic Data Processing News Summary

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

• Positive Sentiment: Fiscal Q1 results exceeded expectations. ADP reported adjusted earnings of $2.82 per share, above the $2.77 consensus estimate, while revenue increased 6.1% year over year to $5.49 billion, slightly ahead of forecasts. Earnings rose from $2.49 per share in the prior-year quarter. ADP Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: Management raised its fiscal 2027 outlook. ADP now expects adjusted EPS growth of approximately 10% to 12% and lifted its client funds interest revenue outlook to $1.59 billion-$1.61 billion. Stronger segment performance and higher interest income supported the improved forecast. ADP Fiscal 2027 Outlook
• Positive Sentiment: ADP expanded its distribution strategy. A new agreement with PNC Bank will embed ADP payroll, HR, benefits, time, insurance and retirement services into PNC’s digital banking platform for small businesses, potentially improving customer acquisition and retention. PNC Bank and ADP Announce Embedded Payroll Solution
• Neutral Sentiment: Analyst views remained mixed. Guggenheim raised its price target to $340, while UBS maintained a Hold rating. These actions suggest upside recognition from some analysts but limited conviction overall.
• Negative Sentiment: Jefferies retained an Underperform rating. Although it increased its price target from $225 to $250, the new target still implies roughly 12.4% downside based on the referenced share price. The cautious rating and ADP’s relatively elevated valuation may have encouraged profit-taking after the earnings release.

Insider Activity at Automatic Data Processing

In other news, VP Joseph Desilva sold 631 shares of the company's stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $282.87, for a total value of $178,490.97. Following the completion of the sale, the vice president directly owned 18,824 shares of the company's stock, valued at approximately $5,324,744.88. This represents a 3.24% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Kwon sold 798 shares of the company's stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $280.00, for a total value of $223,440.00. Following the completion of the sale, the vice president owned 13,193 shares of the company's stock, valued at $3,694,040. This trade represents a 5.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 31,359 shares of company stock valued at $8,809,422 over the last quarter. Corporate insiders own 0.15% of the company's stock.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc NASDAQ: ADP is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.

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