AEGON ASSET MANAGEMENT UK Plc Reduces Stake in Automatic Data Processing, Inc. $ADP

Key Points

• AEGON ASSET MANAGEMENT UK Plc cut its stake in Automatic Data Processing by 21.0% in Q4, selling 63,028 shares and leaving 236,525 shares valued at about $60.84 million.
• Analysts have recently trimmed targets and the consensus rating on ADP is a “Hold” with a consensus price target of $273.85, reflecting mixed broker sentiment after multiple downgrades.
• ADP beat quarterly EPS estimates with revenue up 6.2%, set FY2026 guidance of 10.091–11.011 EPS, declared a quarterly dividend yielding 3.5%, and authorized a $6.0 billion share buyback (up to 5.8% of shares).

AEGON ASSET MANAGEMENT UK Plc lowered its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 21.0% during the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 236,525 shares of the business services provider's stock after selling 63,028 shares during the period. AEGON ASSET MANAGEMENT UK Plc owned approximately 0.06% of Automatic Data Processing worth $60,840,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Brighton Jones LLC increased its position in shares of Automatic Data Processing by 92.1% during the 4th quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider's stock valued at $2,935,000 after purchasing an additional 4,808 shares during the last quarter. Bison Wealth LLC increased its position in shares of Automatic Data Processing by 22.8% during the 4th quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider's stock valued at $1,073,000 after purchasing an additional 681 shares during the last quarter. Schnieders Capital Management LLC. increased its position in shares of Automatic Data Processing by 21.8% during the 2nd quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider's stock valued at $388,000 after purchasing an additional 225 shares during the last quarter. Osterweis Capital Management Inc. bought a new position in shares of Automatic Data Processing during the 2nd quarter valued at about $108,000. Finally, Diversify Advisory Services LLC increased its position in shares of Automatic Data Processing by 17.5% during the 2nd quarter. Diversify Advisory Services LLC now owns 5,477 shares of the business services provider's stock valued at $1,641,000 after purchasing an additional 815 shares during the last quarter. Hedge funds and other institutional investors own 80.03% of the company's stock.

Wall Street Analyst Weigh In

ADP has been the topic of several recent research reports. Cantor Fitzgerald reduced their price objective on Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating on the stock in a research report on Tuesday, April 21st. Guggenheim initiated coverage on Automatic Data Processing in a research report on Thursday, March 19th. They set a "buy" rating and a $270.00 price objective on the stock. UBS Group reduced their price target on Automatic Data Processing from $220.00 to $210.00 and set a "neutral" rating on the stock in a research report on Monday, April 13th. Stifel Nicolaus reduced their price target on Automatic Data Processing from $280.00 to $270.00 and set a "hold" rating on the stock in a research report on Monday, February 9th. Finally, JPMorgan Chase & Co. reduced their price target on Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating on the stock in a research report on Thursday, January 29th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Automatic Data Processing has an average rating of "Hold" and a consensus target price of $273.85.

Insider Activity at Automatic Data Processing

In related news, VP Brian L. Michaud sold 1,000 shares of Automatic Data Processing stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction of $234,180.00. Following the sale, the vice president directly owned 15,310 shares in the company, valued at $3,585,295.80. The trade was a 6.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Christopher D'ambrosio sold 543 shares of Automatic Data Processing stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $208.45, for a total value of $113,188.35. Following the sale, the vice president owned 8,912 shares in the company, valued at $1,857,706.40. This represents a 5.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,809 shares of company stock worth $410,410 over the last ninety days. 0.20% of the stock is owned by corporate insiders.

Automatic Data Processing Price Performance

Shares of ADP stock opened at $196.53 on Friday. The firm has a market cap of $79.13 billion, a P/E ratio of 18.90 and a beta of 0.85. Automatic Data Processing, Inc. has a fifty-two week low of $188.16 and a fifty-two week high of $329.93. The business's 50 day moving average price is $207.37 and its 200-day moving average price is $240.58. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, topping analysts' consensus estimates of $2.57 by $0.05. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The firm had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. During the same period last year, the company earned $2.35 EPS. The business'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. On average, equities research analysts anticipate that Automatic Data Processing, Inc. will post 10.96 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 12th will be given a dividend of $1.70 per share. The ex-dividend date is Friday, June 12th. This represents a $6.80 annualized dividend and a dividend yield of 3.5%. Automatic Data Processing's payout ratio is currently 65.38%.

Automatic Data Processing declared that its Board of Directors has initiated a share buyback plan on Wednesday, January 14th that authorizes the company to buyback $6.00 billion in shares. This buyback authorization authorizes the business services provider to reacquire up to 5.8% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's management believes its shares are undervalued.

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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