Automatic Data Processing, Inc. $ADP Shares Sold by Conning Inc.

Key Points

• Conning Inc. reduced its ADP position by 14.2% in the third quarter, selling 23,212 shares and retaining 139,930 shares valued at approximately $36.1 million. Institutional investors collectively own 80.03% of ADP.
• ADP exceeded quarterly expectations, reporting adjusted earnings of $2.82 per share and revenue of $5.49 billion, up 6.1% year over year. Management raised its fiscal 2027 adjusted EPS growth outlook to approximately 10%–12%.
• Analyst sentiment remains mixed: Guggenheim issued a $340 price target and Buy rating, while UBS and Jefferies remained cautious. ADP shares were trading at $285.37, and the company continues to pay a $1.70 quarterly dividend.

Conning Inc. lowered its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 14.2% in the third quarter, according to its most recent disclosure with the SEC. The institutional investor owned 139,930 shares of the business services provider's stock after selling 23,212 shares during the period. Conning Inc.'s holdings in Automatic Data Processing were worth $36,110,000 at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in the business. AMI Investment Management Inc. increased 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 period. William Mack & Associates Inc. acquired a new stake in shares of Automatic Data Processing in the third quarter valued at $67,000. Victory Financial Group LLC purchased a new position in Automatic Data Processing in the third quarter valued at $288,000. Asset Management One Co. Ltd. boosted its holdings in Automatic Data Processing by 2.2% in the third quarter. Asset Management One Co. Ltd. now owns 197,371 shares of the business services provider's stock valued at $50,934,000 after purchasing an additional 4,245 shares during the period. Finally, MADDEN SECURITIES Corp purchased a new position in Automatic Data Processing in the third quarter valued at $82,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing News Summary

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

• Positive Sentiment: Fiscal Q1 results exceeded expectations. ADP reported adjusted earnings of $2.82 per share, above the $2.77 consensus estimate, while revenue increased 6.1% year over year to $5.49 billion, slightly ahead of forecasts. Earnings rose from $2.49 per share in the prior-year quarter. ADP Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: Management raised its fiscal 2027 outlook. ADP now expects adjusted EPS growth of approximately 10% to 12% and lifted its client funds interest revenue outlook to $1.59 billion-$1.61 billion. Stronger segment performance and higher interest income supported the improved forecast. ADP Fiscal 2027 Outlook
• Positive Sentiment: ADP expanded its distribution strategy. A new agreement with PNC Bank will embed ADP payroll, HR, benefits, time, insurance and retirement services into PNC’s digital banking platform for small businesses, potentially improving customer acquisition and retention. PNC Bank and ADP Announce Embedded Payroll Solution
• Neutral Sentiment: Analyst views remained mixed. Guggenheim raised its price target to $340, while UBS maintained a Hold rating. These actions suggest upside recognition from some analysts but limited conviction overall.
• Negative Sentiment: Jefferies retained an Underperform rating. Although it increased its price target from $225 to $250, the new target still implies roughly 12.4% downside based on the referenced share price. The cautious rating and ADP’s relatively elevated valuation may have encouraged profit-taking after the earnings release.

Insiders Place Their Bets

In related news, VP Joseph Desilva sold 631 shares of the company's stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total value of $178,490.97. Following the completion of the transaction, the vice president directly owned 18,824 shares of the company's stock, valued at $5,324,744.88. This represents a 3.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Kwon sold 798 shares of the stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $280.00, for a total transaction of $223,440.00. Following the completion of the transaction, the vice president owned 13,193 shares in the company, valued at $3,694,040. This represents a 5.70% 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. Over the last ninety days, insiders sold 31,359 shares of company stock valued at $8,809,422. 0.15% of the stock is owned by company insiders.

Automatic Data Processing Trading Down 2.6%

NASDAQ:ADP opened at $285.37 on Thursday. The stock has a 50-day simple moving average of $276.79 and a 200-day simple moving average of $240.57. The stock has a market cap of $113.08 billion, a P/E ratio of 26.09, a P/E/G ratio of 2.75 and a beta of 0.83. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $309.40. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The business services provider reported $2.82 EPS for the quarter, beating analysts' consensus estimates of $2.77 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%. The business had revenue of $5.49 billion for the quarter, compared to the consensus estimate of $5.48 billion. During the same quarter in the prior year, the business posted $2.49 EPS. The business's revenue for the quarter was up 6.1% on a year-over-year basis. As a group, analysts anticipate that Automatic Data Processing, Inc. will post 12.27 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Friday, September 11th were paid a dividend of $1.70 per share. The ex-dividend date was Friday, September 11th. This represents a $6.80 annualized dividend and a yield of 2.4%. Automatic Data Processing's payout ratio is presently 62.16%.

Analyst Ratings Changes

Several research firms recently commented on ADP. BMO Capital Markets boosted their target price on Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a research note on Wednesday, July 29th. Weiss Ratings raised Automatic Data Processing from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, September 22nd. Guggenheim increased their price target on Automatic Data Processing from $300.00 to $340.00 and gave the company a "buy" rating in a research report on Friday, October 23rd. Citigroup lifted their price objective on Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a research note on Thursday, July 30th. Finally, TD Cowen boosted their price objective on Automatic Data Processing from $216.00 to $223.00 and gave the stock a "hold" rating in a research report on Monday, July 6th. Three investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $280.64.

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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