Automatic Data Processing, Inc. $ADP Shares Sold by Edgestream Partners L.P.

Key Points

• Edgestream Partners L.P. reduced its ADP stake by 63.4% in the first quarter, selling 27,873 shares and retaining 16,107 shares valued at approximately $3.27 million. Institutional investors and hedge funds collectively own 80.03% of the company.
• ADP exceeded quarterly earnings expectations: earnings were $2.64 per share versus the $2.59 consensus, while revenue rose 6.8% year over year to $5.47 billion. The company provided fiscal 2027 EPS guidance of $12.12 to $12.34.
• Analysts have raised several price targets, but the overall consensus remains “Hold”, with a target price of $272.43. ADP shares recently opened at $266.46, and one executive sold shares under a pre-arranged Rule 10b5-1 trading plan.

Edgestream Partners L.P. cut its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 63.4% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 16,107 shares of the business services provider's stock after selling 27,873 shares during the quarter. Edgestream Partners L.P.'s holdings in Automatic Data Processing were worth $3,273,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of the company. Imprint Wealth LLC purchased a new position in shares of Automatic Data Processing in the third quarter valued at approximately $25,000. Cornerstone Financial Management LLC purchased a new stake in shares of Automatic Data Processing during the fourth quarter worth approximately $26,000. Bard Associates Inc. purchased a new stake in shares of Automatic Data Processing during the fourth quarter worth approximately $28,000. Whipplewood Advisors LLC raised its stake in Automatic Data Processing by 2,740.0% in the 1st quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock valued at $29,000 after purchasing an additional 137 shares during the last quarter. Finally, Prosperity Bancshares Inc acquired a new position in Automatic Data Processing in the 4th quarter valued at $33,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock opened at $266.46 on Friday. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year high of $315.26. The company has a market cap of $106.51 billion, a price-to-earnings ratio of 24.36 and a beta of 0.83. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.04 and a current ratio of 1.05. The business's 50 day moving average price is $235.88 and its 200 day moving average price is $224.60.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, topping analysts' consensus estimates of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The company had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.44 billion. During the same quarter in the previous year, the company posted $2.26 earnings per share. The firm's revenue for the quarter was up 6.8% compared to the same quarter last year. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, research analysts predict that Automatic Data Processing, Inc. will post 12.28 EPS for the current year.

Analysts Set New Price Targets

A number of brokerages have weighed in on ADP. Wells Fargo & Company raised their price objective on Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a report on Thursday. Jefferies Financial Group dropped their target price on shares of Automatic Data Processing from $230.00 to $190.00 in a report on Thursday, April 30th. Citigroup increased their target price on shares of Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a research report on Thursday. Mizuho lowered their price target on shares of Automatic Data Processing from $332.00 to $305.00 in a research report on Thursday, April 30th. Finally, BMO Capital Markets upped their price objective on shares of Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a research note on Wednesday. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Automatic Data Processing has a consensus rating of "Hold" and a consensus price target of $272.43.

Trending Headlines about Automatic Data Processing

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

• Positive Sentiment: Quarterly results exceeded expectations. ADP reported adjusted earnings of $2.64 per share versus the $2.59 consensus estimate, while revenue of $5.47 billion topped estimates of $5.44 billion and increased 6.8% year over year. Management’s fiscal 2027 EPS guidance of $12.12–$12.34 also supports the bullish outlook. ADP’s Q2 CY2026 sales beat estimates
• Positive Sentiment: Analysts raised price targets following the earnings report. Guggenheim increased its target to $300 and upgraded ADP to “buy.” BMO Capital Markets raised its target to $305, while Citigroup, Morgan Stanley, Stifel and Wells Fargo lifted targets to $287, $286, $285 and $283, respectively. These revisions indicate improved confidence in ADP’s earnings outlook. BMO Capital Markets increases ADP price target
• Positive Sentiment: A new buy recommendation adds further support. Commentary following the earnings release described ADP’s valuation as reasonable after its strong long-term performance and maintained a constructive view of the stock. Automatic Data Processing new buy recommendation
• Neutral Sentiment: Most analysts remain cautious despite higher targets. Citigroup, Morgan Stanley, Stifel and Wells Fargo maintained neutral, equal-weight or hold ratings, suggesting that much of the earnings improvement may already be reflected in ADP’s valuation.
• Negative Sentiment: An executive sold shares. Vice President David Kwon sold 2,414 shares for approximately $641,207, reducing his ownership by about 20%. The transaction was conducted under a pre-arranged Rule 10b5-1 plan, which reduces its significance as a discretionary bearish signal. SEC insider transaction filing

Insider Buying and Selling at Automatic Data Processing

In other news, VP David Kwon sold 2,414 shares of the business's stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $265.62, for a total transaction of $641,206.68. Following the transaction, the vice president owned 9,660 shares of the company's stock, valued at approximately $2,565,889.20. The trade was a 19.99% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.20% of the company's stock.

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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