Automatic Data Processing, Inc. $ADP Holdings Raised by Wealthfront Advisers LLC

Key Points

• Wealthfront Advisers LLC increased its stake in Automatic Data Processing by 20.8%, buying 9,416 shares to hold 54,615 shares worth about $14.049 million per its latest 13F filing.
• ADP beat Q3 EPS ($3.37 vs. $3.30) with revenue up 7% y/y, set FY2026 EPS guidance of 11.010–11.110, and the board authorized a $6.0 billion share repurchase (up to 5.8% of shares).
• ADP announced a quarterly dividend of $1.70 (3.4% yield), but several analysts have trimmed price targets and the stock carries a consensus "Hold" rating with an average target of $265.69.

Wealthfront Advisers LLC grew its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 20.8% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 54,615 shares of the business services provider's stock after purchasing an additional 9,416 shares during the period. Wealthfront Advisers LLC's holdings in Automatic Data Processing were worth $14,049,000 as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. Vanguard Group Inc. boosted its stake in Automatic Data Processing by 0.9% in the 3rd quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider's stock worth $12,235,907,000 after purchasing an additional 389,451 shares during the period. Capital Research Global Investors boosted its stake in Automatic Data Processing by 1.5% in the 3rd quarter. Capital Research Global Investors now owns 8,021,194 shares of the business services provider's stock worth $2,354,220,000 after purchasing an additional 116,074 shares during the period. Wellington Management Group LLP boosted its stake in Automatic Data Processing by 47.8% in the 3rd quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider's stock worth $2,004,691,000 after purchasing an additional 2,208,927 shares during the period. Invesco Ltd. boosted its stake in Automatic Data Processing by 5.7% in the 3rd quarter. Invesco Ltd. now owns 4,837,993 shares of the business services provider's stock worth $1,419,951,000 after purchasing an additional 261,312 shares during the period. Finally, Ameriprise Financial Inc. boosted its stake in Automatic Data Processing by 3.3% in the 3rd quarter. Ameriprise Financial Inc. now owns 4,323,554 shares of the business services provider's stock worth $1,264,118,000 after purchasing an additional 136,142 shares during the period. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Trading Up 1.0%

Shares of NASDAQ:ADP opened at $199.17 on Wednesday. The firm has a fifty day moving average of $206.80 and a two-hundred day moving average of $238.99. The firm has a market capitalization of $80.19 billion, a P/E ratio of 19.15 and a beta of 0.85. Automatic Data Processing, Inc. has a 12-month low of $188.16 and a 12-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.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.30 by $0.07. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The firm's revenue for the quarter was up 7.0% on a year-over-year basis. During the same quarter last year, the company posted $3.06 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, equities analysts expect that Automatic Data Processing, Inc. will post 10.96 EPS for the current fiscal year.

Automatic Data Processing announced that its board has initiated a stock repurchase plan on Wednesday, January 14th that allows the company to repurchase $6.00 billion in shares. This repurchase authorization allows the business services provider to reacquire up to 5.8% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's management believes its shares are undervalued.

Automatic Data Processing Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be paid a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.4%. Automatic Data Processing's dividend payout ratio (DPR) is 65.38%.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of Automatic Data Processing stock in a transaction on Monday, March 16th. The shares were sold at an average price of $208.45, for a total transaction of $113,188.35. Following the completion of the sale, the vice president owned 8,912 shares of the company's stock, valued at $1,857,706.40. This trade represents a 5.74% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, VP David Foskett sold 266 shares of Automatic Data Processing stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction of $63,042.00. Following the sale, the vice president directly owned 10,954 shares of the company's stock, valued at $2,596,098. This trade represents a 2.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,809 shares of company stock valued at $410,410 in the last quarter. Company insiders own 0.20% of the company's stock.

Trending Headlines about Automatic Data Processing

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

• Positive Sentiment: Q3 beat and raised FY26 guidance — ADP beat Q3 EPS ($3.37 vs. $3.30), reported healthy margins/ROE, and nudged FY‑2026 EPS and revenue guidance slightly above/at consensus; this is the primary catalyst for the stock move. PR: ADP Reports Third Quarter Fiscal 2026 Results
• Positive Sentiment: Company commentary and press materials — management provided a revised outlook and supplemental materials (press release + slide deck) that investors can review for guidance detail and forward commentary. Press Release / Slide Deck
• Neutral Sentiment: Press coverage summarizes the beat and outlook lift — mainstream coverage underscores the positive takeaway but also notes macro uncertainties that could temper momentum. WSJ: ADP Lifts Outlook
• Neutral Sentiment: ADP National Employment Report update — the company’s NER pulse showed moderate private‑sector job gains, a data product that supports ADP’s market position but is not an immediate stock catalyst. ADP NER Preliminary Estimate
• Negative Sentiment: Analyst target cuts ahead of/after the print — Morgan Stanley trimmed its price target (311→274) and kept an equal‑weight rating, which can limit near‑term upside despite the beat. MarketScreener: Morgan Stanley target cut
• Negative Sentiment: Mixed analyst commentary — Cantor Fitzgerald and other outlets note macro risks and have lowered price targets or highlighted near‑term pressure, which could weigh on sentiment if growth concerns persist. InsiderMonkey: Cantor Fitzgerald view

Analysts Set New Price Targets

A number of equities analysts recently commented on ADP shares. JPMorgan Chase & Co. decreased their price objective 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. Stifel Nicolaus decreased their price objective on shares of Automatic Data Processing from $280.00 to $270.00 and set a "hold" rating for the company in a research note on Monday, February 9th. Wells Fargo & Company decreased their price objective on shares of Automatic Data Processing from $262.00 to $214.00 and set an "underweight" rating for the company in a research note on Friday, March 27th. Cantor Fitzgerald decreased their price objective on shares of Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating for the company in a research note on Tuesday, April 21st. Finally, BMO Capital Markets decreased their price objective on shares of Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating for the company in a research note on Tuesday, April 7th. One investment 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 MarketBeat, Automatic Data Processing presently has a consensus rating of "Hold" and an average price target of $265.69.

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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