Automatic Data Processing, Inc. $ADP Stock Bought by Canopy Partners LLC

Key Points

• Canopy Partners more than doubled its ADP position by acquiring 8,956 additional shares, bringing its holdings to 16,822 shares valued at approximately $4.34 million. Institutional investors collectively own 80.03% of ADP.
• ADP exceeded quarterly expectations, reporting $2.82 in EPS and $5.49 billion in revenue, up 6.1% year over year. The company also pays a $1.70 quarterly dividend, equivalent to a 2.3% annualized yield.
• Analyst sentiment remains mixed: ADP has a consensus “Hold” rating and an average price target of $283.27, below the reported share price of $293.84, reflecting valuation concerns despite recent earnings strength and some bullish target increases.

Canopy Partners LLC lifted its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 113.9% during the 3rd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 16,822 shares of the business services provider's stock after acquiring an additional 8,956 shares during the period. Automatic Data Processing makes up approximately 1.3% of Canopy Partners LLC's investment portfolio, making the stock its 19th largest position. Canopy Partners LLC's holdings in Automatic Data Processing were worth $4,341,000 at the end of the most recent quarter.

A number of other hedge funds have also bought and sold shares of ADP. BlackRock Inc. bought a new stake in shares of Automatic Data Processing during the 2nd quarter worth approximately $8,097,229,000. Bank of America Corp DE acquired a new position in Automatic Data Processing during the second quarter valued at approximately $1,231,175,000. Deutsche Bank AG bought a new stake in Automatic Data Processing during the second quarter worth $994,937,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in Automatic Data Processing by 3.1% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,251,447 shares of the business services provider's stock worth $952,112,000 after purchasing an additional 129,376 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Automatic Data Processing in the 2nd quarter valued at $725,513,000. 80.03% of the stock is owned by institutional investors.

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock opened at $293.84 on Friday. The business has a 50-day moving average price of $277.25 and a two-hundred day moving average price of $240.83. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $309.40. The company has a market cap of $116.43 billion, a P/E ratio of 24.99, a PEG ratio of 2.58 and a beta of 0.83. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.98.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share for the quarter, topping analysts' consensus estimates of $2.77 by $0.05. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. The business had revenue of $5.49 billion during the quarter, compared to the consensus estimate of $5.48 billion. During the same period in the previous year, the company posted $2.49 earnings per share. The firm'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 12.34 EPS for the current year.

Automatic Data Processing Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Friday, September 11th were paid a $1.70 dividend. The ex-dividend date was Friday, September 11th. This represents a $6.80 annualized dividend and a dividend yield of 2.3%. Automatic Data Processing's payout ratio is currently 60.28%.

Key Headlines Impacting Automatic Data Processing

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

• Positive Sentiment: Raised fiscal 2027 outlook: ADP now forecasts 10%–12% growth in adjusted earnings per share and raised its outlook for client-funds interest revenue to $1.59 billion–$1.61 billion. The improved guidance is the clearest near-term catalyst for the stock. ADP forecasts fiscal 2027 adjusted EPS growth
• Positive Sentiment: Quarterly results exceeded expectations: ADP reported earnings of $2.82 per share versus the $2.77 consensus estimate, while revenue of $5.49 billion modestly topped forecasts and increased 6.1% year over year. Management also highlighted AI momentum during the earnings call. ADP fiscal 2027 first-quarter results
• Positive Sentiment: Some analysts see additional upside: Guggenheim reaffirmed a Buy rating with a $340 price target, while Stifel raised its target to $305. Jefferies also lifted its target, although it retained an Underperform rating. Guggenheim ADP rating
• Neutral Sentiment: Expansion in small-business payroll: ADP is broadening its reach among small-business customers, a move that could support long-term client and revenue growth but may require additional investment. ADP small-business payroll expansion
• Negative Sentiment: Valuation and analyst caution: Citi, Morgan Stanley, and RBC maintain neutral or equivalent ratings with targets around $288–$295, while Jefferies remains bearish. A Seeking Alpha analysis also argues that investors should not chase the rally despite ADP’s attractive dividend-growth record. ADP dividend growth and valuation analysis

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on ADP shares. Royal Bank Of Canada reiterated a "sector perform" rating and set a $290.00 price objective on shares of Automatic Data Processing in a research report on Thursday. Citigroup boosted their target price on shares of Automatic Data Processing from $287.00 to $295.00 and gave the stock a "neutral" rating in a research note on Thursday. UBS Group increased their price target on Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a research note on Wednesday, July 22nd. 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, July 30th. Finally, BMO Capital Markets raised their price objective on Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a report on Wednesday, July 29th. Three research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, Automatic Data Processing currently has a consensus rating of "Hold" and a consensus target price of $283.27.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, CEO Maria Black sold 29,810 shares of the firm's stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $280.91, for a total value of $8,373,927.10. Following the completion of the sale, the chief executive officer directly owned 80,624 shares in the company, valued at approximately $22,648,087.84. This trade represents a 26.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian L. Michaud sold 120 shares of Automatic Data Processing stock in a transaction on Friday, August 21st. The shares were sold at an average price of $279.70, for a total transaction of $33,564.00. Following the completion of the sale, the vice president directly owned 18,442 shares of the company's stock, valued at approximately $5,158,227.40. This trade represents a 0.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 31,359 shares of company stock worth $8,809,422. 0.15% of the stock is owned by insiders.

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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