Automatic Data Processing, Inc. $ADP Shares Sold by Harel Insurance Investments & Financial Services Ltd.

Key Points

• Harel Insurance Investments & Financial Services Ltd. cut its stake in Automatic Data Processing (ADP) by 39.8% in Q4, selling 7,139 shares and holding 10,783 shares valued at about $2.77 million.
• ADP beat Q1 estimates with $3.37 EPS (vs. $3.30 expected) and $5.94B revenue (vs. $5.85B expected), raised FY2026 guidance to $11.010–11.110 EPS, roughly in line with the analyst consensus of 11.07.
• The company announced a quarterly dividend of $1.70 (annualized $6.80, ~3.2% yield) and approved a $6.0 billion share buyback program (up to 5.8% of outstanding shares).

Harel Insurance Investments & Financial Services Ltd. decreased its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 39.8% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 10,783 shares of the business services provider's stock after selling 7,139 shares during the quarter. Harel Insurance Investments & Financial Services Ltd.'s holdings in Automatic Data Processing were worth $2,772,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also made changes to their positions in ADP. Imprint Wealth LLC acquired a new stake in shares of Automatic Data Processing during the 3rd quarter worth approximately $25,000. Cloud Capital Management LLC acquired a new stake in shares of Automatic Data Processing during the 3rd quarter worth approximately $29,000. Board of the Pension Protection Fund acquired a new stake in shares of Automatic Data Processing during the 4th quarter worth approximately $31,000. Y.D. More Investments Ltd acquired a new stake in shares of Automatic Data Processing during the 3rd quarter worth approximately $32,000. Finally, High Point Wealth Management LLC acquired a new stake in shares of Automatic Data Processing during the 4th quarter worth approximately $34,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Trading Down 0.3%

Shares of Automatic Data Processing stock opened at $210.60 on Wednesday. The stock has a market cap of $84.18 billion, a P/E ratio of 19.65 and a beta of 0.83. The stock's 50 day simple moving average is $206.59 and its 200-day simple moving average is $237.47. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $329.93. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.04 and a quick ratio of 1.04.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share for the quarter, topping the consensus estimate of $3.30 by $0.07. The business had revenue of $5.94 billion for the quarter, compared to analysts' expectations of $5.85 billion. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The business's revenue for the quarter was up 7.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $3.06 EPS. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Analysts predict that Automatic Data Processing, Inc. will post 11.07 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 12th will be issued a $1.70 dividend. This represents a $6.80 annualized dividend and a yield of 3.2%. The ex-dividend date is Friday, June 12th. Automatic Data Processing's dividend payout ratio (DPR) is 63.43%.

Automatic Data Processing declared that its board has approved a share buyback 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 purchase up to 5.8% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the stock. Morgan Stanley dropped their price objective on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating on the stock in a research note on Tuesday, April 28th. Citigroup reduced their price target on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating for the company in a report on Thursday, April 30th. Guggenheim initiated coverage on Automatic Data Processing in a report on Thursday, March 19th. They issued a "buy" rating and a $270.00 price target for the company. Argus reduced their price target on Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a report on Tuesday. Finally, UBS Group upped their price target on Automatic Data Processing from $210.00 to $218.00 and gave the stock a "neutral" rating in a report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $253.50.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP Brian L. Michaud sold 1,000 shares of the firm's stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $234.18, for a total value of $234,180.00. Following the completion of the transaction, the vice president owned 15,310 shares of the company's stock, valued at $3,585,295.80. This trade represents a 6.13% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, VP Christopher D'ambrosio sold 543 shares of the firm'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 transaction of $113,188.35. Following the completion of the transaction, the vice president directly owned 8,912 shares of the company's stock, valued at $1,857,706.40. This represents a 5.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 1,809 shares of company stock worth $410,410. 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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