Automatic Data Processing, Inc. $ADP Position Decreased by Sumitomo Mitsui Trust Group Inc.

Key Points

• Sumitomo Mitsui Trust Group reduced its ADP stake by 3.5%, selling 34,318 shares and retaining 935,913 shares worth approximately $241.5 million. Institutional investors still own about 80% of the company.
• ADP exceeded quarterly expectations, reporting $2.82 in earnings per share and $5.49 billion in revenue, up 6.1% year over year. Management also raised its fiscal 2027 outlook, projecting 10%–12% adjusted EPS growth.
• Analyst sentiment remains mixed: several firms raised price targets, but the consensus rating is “Hold” with an average target of $283.27, below the stock’s reported $293.84 opening price.

Sumitomo Mitsui Trust Group Inc. lessened its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 3.5% in the 3rd quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 935,913 shares of the business services provider's stock after selling 34,318 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned about 0.24% of Automatic Data Processing worth $241,522,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Thrive Wealth Management LLC raised its stake in shares of Automatic Data Processing by 3.5% in the 2nd quarter. Thrive Wealth Management LLC now owns 1,085 shares of the business services provider's stock valued at $243,000 after acquiring an additional 37 shares during the period. Aviance Capital Partners LLC lifted its holdings in Automatic Data Processing by 0.4% during the 3rd quarter. Aviance Capital Partners LLC now owns 9,298 shares of the business services provider's stock worth $2,399,000 after buying an additional 37 shares during the last quarter. Tanager Wealth Management LLP boosted its holdings in shares of Automatic Data Processing by 4.1% in the 3rd quarter. Tanager Wealth Management LLP now owns 971 shares of the business services provider's stock valued at $251,000 after buying an additional 38 shares in the last quarter. AMI Investment Management Inc. grew its position in shares of Automatic Data Processing by 3.6% during the third quarter. AMI Investment Management Inc. now owns 1,140 shares of the business services provider's stock worth $294,000 after acquiring an additional 40 shares during the last quarter. Finally, Aull & Monroe Investment Management Corp raised its stake in Automatic Data Processing by 0.3% during the 3rd quarter. Aull & Monroe Investment Management Corp now owns 15,668 shares of the business services provider's stock valued at $4,043,000 after acquiring an additional 44 shares during the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing News Roundup

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

• Positive Sentiment: Raised fiscal 2027 outlook: ADP now forecasts 10%–12% growth in adjusted earnings per share and raised its outlook for client-funds interest revenue to $1.59 billion–$1.61 billion. The improved guidance is the clearest near-term catalyst for the stock. ADP forecasts fiscal 2027 adjusted EPS growth
• Positive Sentiment: Quarterly results exceeded expectations: ADP reported earnings of $2.82 per share versus the $2.77 consensus estimate, while revenue of $5.49 billion modestly topped forecasts and increased 6.1% year over year. Management also highlighted AI momentum during the earnings call. ADP fiscal 2027 first-quarter results
• Positive Sentiment: Some analysts see additional upside: Guggenheim reaffirmed a Buy rating with a $340 price target, while Stifel raised its target to $305. Jefferies also lifted its target, although it retained an Underperform rating. Guggenheim ADP rating
• Neutral Sentiment: Expansion in small-business payroll: ADP is broadening its reach among small-business customers, a move that could support long-term client and revenue growth but may require additional investment. ADP small-business payroll expansion
• Negative Sentiment: Valuation and analyst caution: Citi, Morgan Stanley, and RBC maintain neutral or equivalent ratings with targets around $288–$295, while Jefferies remains bearish. A Seeking Alpha analysis also argues that investors should not chase the rally despite ADP’s attractive dividend-growth record. ADP dividend growth and valuation analysis

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $293.84 on Monday. The stock has a market cap of $116.43 billion, a price-to-earnings ratio of 26.05, a PEG ratio of 2.64 and a beta of 0.83. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.05 and a current ratio of 1.03. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $309.40. The business has a fifty day moving average of $277.25 and a 200-day moving average of $240.83.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The business services provider reported $2.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.77 by $0.05. Automatic Data Processing had a net margin of 20.33% and a return on equity of 77.01%. The business had revenue of $5.49 billion during the quarter, compared to analysts' expectations of $5.48 billion. During the same period last year, the firm posted $2.49 earnings per share. The business's revenue was up 6.1% on a year-over-year basis. Equities analysts predict that Automatic Data Processing, Inc. will post 12.36 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Friday, September 11th were given a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 2.3%. The ex-dividend date was Friday, September 11th. Automatic Data Processing's dividend payout ratio is 60.28%.

Analysts Set New Price Targets

ADP has been the topic of a number of analyst reports. Citigroup lifted their price target on Automatic Data Processing from $287.00 to $295.00 and gave the company a "neutral" rating in a research note on Thursday. UBS Group upped their price target on shares of Automatic Data Processing from $260.00 to $270.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 22nd. Cantor Fitzgerald increased their target price on shares of Automatic Data Processing from $295.00 to $310.00 and gave the stock an "overweight" rating in a research report on Monday, August 3rd. TD Cowen increased their target price 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. Finally, Weiss Ratings upgraded Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, September 22nd. Three investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $283.27.

Insider Activity

In related news, VP David Kwon sold 798 shares of the stock in a transaction dated 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 directly owned 13,193 shares of the company's stock, valued at approximately $3,694,040. This represents a 5.70% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Maria Black sold 29,810 shares of the firm's stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $280.91, for a total value of $8,373,927.10. Following the sale, the chief executive officer owned 80,624 shares of the company's stock, valued at $22,648,087.84. The trade was a 26.99% 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 worth $8,809,422 in the last quarter. 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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