4,245 Automatic Data Processing, Inc. $ADP Shares Purchased by Asset Management One Co. Ltd.

Key Points

• Asset Management One increased its ADP stake by 2.2%, purchasing 4,245 additional shares to reach 197,371 shares valued at approximately $50.9 million. Institutional investors collectively own 80.03% of ADP.
• ADP exceeded quarterly expectations, reporting adjusted EPS of $2.82 versus the $2.77 consensus and revenue of $5.49 billion, up 6.1% year over year. Management also raised its fiscal 2027 earnings-growth outlook to approximately 10%–12%.
• Analyst sentiment remains mixed: ADP has a consensus “Hold” rating and an average price target of $280.64, while insiders sold more than 31,000 shares worth roughly $8.8 million over the past three months.

Asset Management One Co. Ltd. boosted its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 2.2% during the 3rd quarter, according to the company in its most recent disclosure with the SEC. The firm owned 197,371 shares of the business services provider's stock after buying an additional 4,245 shares during the quarter. Asset Management One Co. Ltd.'s holdings in Automatic Data Processing were worth $50,934,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in ADP. Polaris Financial Partners acquired a new position in shares of Automatic Data Processing in the third quarter worth about $25,000. Whipplewood Advisors LLC boosted its stake in shares of Automatic Data Processing by 2,740.0% during the 1st quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock worth $29,000 after acquiring an additional 137 shares in the last quarter. Kelly Lawrence W & Associates Inc. CA purchased a new stake in shares of Automatic Data Processing during the 2nd quarter worth about $34,000. Cornerstone Financial Management LLC grew its position in shares of Automatic Data Processing by 59.2% during the 2nd quarter. Cornerstone Financial Management LLC now owns 156 shares of the business services provider's stock valued at $35,000 after acquiring an additional 58 shares during the period. Finally, N.E.W. Advisory Services LLC acquired a new stake in shares of Automatic Data Processing during the 2nd quarter valued at about $36,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on ADP. TD Cowen lifted their price target on Automatic Data Processing from $216.00 to $223.00 and gave the company a "hold" rating in a research note on Monday, July 6th. Guggenheim upped their price target on Automatic Data Processing from $300.00 to $340.00 and gave the stock a "buy" rating in a report on Friday, October 23rd. Stifel Nicolaus increased their price target on Automatic Data Processing from $260.00 to $285.00 and gave the stock a "hold" rating in a research report on Thursday, July 30th. Weiss Ratings raised Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, September 22nd. Finally, Citigroup boosted their price objective on Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a research report on Thursday, July 30th. Three equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Automatic Data Processing currently has a consensus rating of "Hold" and an average price target of $280.64.

Insiders Place Their Bets

In other news, CEO Maria Black sold 29,810 shares of the stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $280.91, for a total transaction of $8,373,927.10. Following the completion of the transaction, the chief executive officer directly owned 80,624 shares in the company, valued at approximately $22,648,087.84. This represents a 26.99% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian L. Michaud sold 120 shares of the stock in a transaction on Friday, August 21st. The stock was sold at an average price of $279.70, for a total value of $33,564.00. Following the transaction, the vice president owned 18,442 shares of the company's stock, valued at approximately $5,158,227.40. This represents a 0.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 31,359 shares of company stock worth $8,809,422 in the last three months. 0.15% of the stock is owned by insiders.

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.

Automatic Data Processing Stock Down 2.6%

Shares of NASDAQ ADP opened at $285.37 on Thursday. The company has a 50 day simple moving average of $276.79 and a 200-day simple moving average of $240.57. The company has a market capitalization of $113.08 billion, a P/E ratio of 26.09, a P/E/G ratio of 2.75 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 1.05. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $309.40.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The business services provider reported $2.82 EPS for the quarter, beating the consensus estimate of $2.77 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 $5.49 billion for the quarter, compared to analyst estimates of $5.48 billion. During the same quarter in the previous year, the company earned $2.49 EPS. The business's revenue for the quarter was up 6.1% compared to the same quarter last year. On average, equities research analysts predict that Automatic Data Processing, Inc. will post 12.27 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

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

Automatic Data Processing 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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