Automatic Data Processing, Inc. $ADP Shares Acquired by Mirae Asset Global Investments Co. Ltd.

Key Points

• Mirae Asset Global Investments increased its stake in Automatic Data Processing by 27% to 234,273 shares, worth about $60.26 million at the end of the quarter.
• ADP beat quarterly expectations with $2.62 EPS versus $2.57 expected and $5.36 billion in revenue (up 6.2% YoY), and set FY 2026 guidance of $10.091–$11.011 in EPS (analysts forecast ~9.93).
• The board authorized a $6.0 billion share repurchase (about 5.8% of shares) and declared a quarterly dividend of $1.70 (annualized $6.80, ~3.4% yield; ex-dividend June 12, payable July 1).

Mirae Asset Global Investments Co. Ltd. boosted its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 27.0% in the fourth quarter, according to its most recent Form 13F filing with the SEC. The fund owned 234,273 shares of the business services provider's stock after purchasing an additional 49,774 shares during the period. Mirae Asset Global Investments Co. Ltd. owned about 0.06% of Automatic Data Processing worth $60,262,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently bought and sold shares of the business. Imprint Wealth LLC acquired a new stake in shares of Automatic Data Processing during the third quarter worth approximately $25,000. TruNorth Capital Management LLC bought a new stake in shares of Automatic Data Processing in the third quarter worth $28,000. Cloud Capital Management LLC acquired a new stake in Automatic Data Processing in the third quarter valued at $29,000. Board of the Pension Protection Fund acquired a new stake in Automatic Data Processing in the fourth quarter valued at $31,000. Finally, Y.D. More Investments Ltd bought a new position in Automatic Data Processing during the 3rd quarter valued at $32,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Stock Up 1.8%

ADP stock opened at $200.39 on Friday. The firm has a market cap of $80.69 billion, a price-to-earnings ratio of 19.27 and a beta of 0.85. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $329.93. The firm has a fifty day moving average price of $209.78 and a two-hundred day moving average price of $244.74. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.57 by $0.05. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The company had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. During the same period last year, the firm posted $2.35 EPS. The company's revenue for the quarter was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Research analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

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 $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a yield of 3.4%. The ex-dividend date is Friday, June 12th. Automatic Data Processing's payout ratio is presently 65.38%.

Automatic Data Processing announced that its board has initiated a share repurchase plan on Wednesday, January 14th that authorizes the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to repurchase up to 5.8% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Analyst Ratings Changes

Several research analysts have weighed in on the stock. 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 report on Friday, March 27th. Citigroup reduced their price target on shares of Automatic Data Processing from $303.00 to $265.00 and set a "neutral" rating on the stock in a research report on Thursday, January 29th. Cantor Fitzgerald started coverage on Automatic Data Processing in a research note on Tuesday, January 27th. They issued an "overweight" rating and a $306.00 price target for the company. JPMorgan Chase & Co. lowered their price objective on Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating for the company in a report on Thursday, January 29th. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of Automatic Data Processing in a research note on Monday, December 29th. One 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 issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $278.62.

Insider Buying and Selling at Automatic Data Processing

In related news, VP David Foskett sold 266 shares of the firm's stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total value of $63,042.00. Following the sale, the vice president owned 10,954 shares of the company's stock, valued at approximately $2,596,098. This trade represents a 2.37% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Christopher D'ambrosio sold 543 shares of the business's 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 transaction, the vice president owned 8,912 shares of the company's stock, valued at $1,857,706.40. This represents a 5.74% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 1,809 shares of company stock worth $410,410 over the last ninety days. Company insiders own 0.20% of the company's stock.

Automatic Data Processing 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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