Automatic Data Processing, Inc. $ADP Position Cut by Munich Reinsurance Co Stock Corp in Munich

Key Points

• Munich Re cut its ADP stake by 95.7% in Q4, selling 22,541 shares and leaving 1,013 shares worth $263,000, according to its SEC filing.
• ADP beat Q4 estimates with $2.62 EPS (vs. $2.57 expected) and $5.36B revenue (+6.2% y/y), and management set FY2026 EPS guidance of 10.091–11.011.
• The board authorized a $6.00 billion buyback (up to 5.8% of shares) and declared a $1.70 quarterly dividend (annualized $6.80, ~3.5% yield); analysts' consensus rating is "Hold" with a $273.85 target.

Munich Reinsurance Co Stock Corp in Munich trimmed its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 95.7% during the fourth quarter, according to its most recent disclosure with the SEC. The fund owned 1,013 shares of the business services provider's stock after selling 22,541 shares during the quarter. Munich Reinsurance Co Stock Corp in Munich's holdings in Automatic Data Processing were worth $263,000 as of its most recent SEC filing.

Other hedge funds also recently added to or reduced their stakes in the company. Imprint Wealth LLC bought a new stake in Automatic Data Processing in the third quarter valued at $25,000. TruNorth Capital Management LLC bought a new stake in shares of Automatic Data Processing during the third quarter valued at about $28,000. Cloud Capital Management LLC bought a new stake in shares of Automatic Data Processing during the third quarter valued at about $29,000. Y.D. More Investments Ltd bought a new stake in shares of Automatic Data Processing during the third quarter valued at about $32,000. Finally, Board of the Pension Protection Fund bought a new stake in shares of Automatic Data Processing during the fourth quarter valued at about $31,000. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Price Performance

NASDAQ:ADP opened at $196.53 on Friday. The business's 50-day moving average price is $207.37 and its 200 day moving average price is $240.58. 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 52-week low of $188.16 and a 52-week 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 quarterly earnings results 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. The firm had revenue of $5.36 billion for the quarter, compared to analysts' expectations of $5.34 billion. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.Automatic Data Processing's revenue was up 6.2% on a year-over-year basis. During the same quarter last year, the business posted $2.35 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, sell-side analysts predict that Automatic Data Processing, Inc. will post 10.96 earnings per share for the current fiscal year.

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

Automatic Data Processing Dividend Announcement

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

Insider Buying and Selling

In related news, VP Brian L. Michaud sold 1,000 shares of Automatic Data Processing stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $234.18, for a total value of $234,180.00. Following the transaction, the vice president owned 15,310 shares of the company's stock, valued at approximately $3,585,295.80. This trade represents a 6.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP David Foskett sold 266 shares of Automatic Data Processing stock in a transaction dated Thursday, February 5th. The stock was sold at an average price of $237.00, for a total value of $63,042.00. Following the completion of the transaction, the vice president directly owned 10,954 shares in the company, valued at $2,596,098. This represents a 2.37% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 1,809 shares of company stock valued at $410,410. 0.20% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

ADP has been the topic of a number of recent analyst reports. Cantor Fitzgerald cut their price objective on shares of Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating on the stock in a research note on Tuesday, April 21st. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Automatic Data Processing in a report on Monday, December 29th. JPMorgan Chase & Co. lowered their target price on Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating on the stock in a report on Thursday, January 29th. UBS Group lowered their target price on Automatic Data Processing from $220.00 to $210.00 and set a "neutral" rating on the stock in a report on Monday, April 13th. Finally, Stifel Nicolaus lowered their target price on Automatic Data Processing from $280.00 to $270.00 and set a "hold" rating on the stock in a report on Monday, February 9th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Automatic Data Processing has an average rating of "Hold" and a consensus price target of $273.85.

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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