Automatic Data Processing, Inc. $ADP Shares Bought by Elevation Point Wealth Partners LLC

Key Points

• Elevation Point Wealth Partners LLC increased its ADP stake by 181.5%, buying 10,824 shares to hold 16,789 shares worth about $4.95 million after the third quarter.
• ADP's board authorized a $6.0 billion share repurchase (up to 5.8% of outstanding shares) and declared a quarterly dividend of $1.70 ($6.80 annualized), implying a roughly 3.3% yield.
• ADP beat the quarter with $2.62 EPS versus $2.57 expected and $5.36B revenue, and set FY2026 guidance at 10.091–11.011 EPS compared with analyst consensus near 9.93 EPS.

Elevation Point Wealth Partners LLC increased its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 181.5% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 16,789 shares of the business services provider's stock after buying an additional 10,824 shares during the period. Elevation Point Wealth Partners LLC's holdings in Automatic Data Processing were worth $4,950,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also made changes to their positions in the company. Imprint Wealth LLC purchased a new stake in shares of Automatic Data Processing in the 3rd quarter worth about $25,000. Howard Hughes Medical Institute acquired a new position in Automatic Data Processing during the second quarter worth about $27,000. TruNorth Capital Management LLC purchased a new stake in shares of Automatic Data Processing in the third quarter valued at about $28,000. Cloud Capital Management LLC acquired a new stake in shares of Automatic Data Processing in the third quarter valued at approximately $29,000. Finally, Y.D. More Investments Ltd acquired a new position in shares of Automatic Data Processing during the 3rd quarter worth approximately $32,000. Hedge funds and other institutional investors own 80.03% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on the company. Citigroup cut their price target on Automatic Data Processing from $303.00 to $265.00 and set a "neutral" rating for the company in a report on Thursday, January 29th. Cantor Fitzgerald began coverage on shares of Automatic Data Processing in a research note on Tuesday, January 27th. They set an "overweight" rating and a $306.00 price target on the stock. Stifel Nicolaus lowered their price target on shares of Automatic Data Processing from $280.00 to $270.00 and set a "hold" rating for the company in a report on Monday, February 9th. Weiss Ratings reissued a "hold (c+)" rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Finally, Wells Fargo & Company lowered their target price on shares of Automatic Data Processing from $272.00 to $262.00 and set an "underweight" rating for the company in a research note on Thursday, January 29th. Two equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $290.00.

Automatic Data Processing Price Performance

Automatic Data Processing stock opened at $208.52 on Friday. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. The firm has a market capitalization of $83.96 billion, a P/E ratio of 20.05 and a beta of 0.86. The firm has a fifty day moving average of $234.58 and a 200-day moving average of $259.94. Automatic Data Processing, Inc. has a 52-week low of $203.26 and a 52-week high of $329.93.

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

Automatic Data Processing Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be paid a $1.70 dividend. The ex-dividend date is Friday, March 13th. This represents a $6.80 annualized dividend and a dividend yield of 3.3%. Automatic Data Processing's payout ratio is 65.38%.

Automatic Data Processing announced that its Board of Directors has authorized a share repurchase program on Wednesday, January 14th that authorizes the company to buyback $6.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to purchase up to 5.8% of its stock through open market purchases. Stock buyback programs are often a sign that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In other news, VP Brian L. Michaud sold 1,000 shares of the company's stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $234.18, for a total value of $234,180.00. Following the sale, the vice president owned 15,310 shares in the company, valued at approximately $3,585,295.80. This 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 the business's stock in a transaction dated Thursday, February 5th. The shares were sold at an average price of $237.00, for a total value of $63,042.00. Following the completion of the sale, the vice president directly owned 10,954 shares of the company's stock, valued at approximately $2,596,098. This represents a 2.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 3,515 shares of company stock worth $887,074. Company insiders own 0.20% of the company's stock.

About Automatic Data Processing

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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