Automatic Data Processing, Inc. $ADP Stock Holdings Lifted by Bank of Nova Scotia

Key Points

• Bank of Nova Scotia increased its stake in Automatic Data Processing by 9.3% in Q3 to 329,731 shares, worth about $96.8 million (roughly 0.08% of ADP).
• ADP beat quarterly estimates with $2.62 EPS and $5.36B revenue, set FY2026 guidance of roughly 10.09–11.01 EPS, and its board authorized a $6 billion share buyback (up to 5.8% of shares).
• Analysts have trimmed price targets recently and the consensus rating is Hold with a $290 average target, while the stock trades near its 52-week low (opened $208.52; 52‑week low $203.26).

Bank of Nova Scotia grew its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 9.3% during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 329,731 shares of the business services provider's stock after purchasing an additional 27,951 shares during the period. Bank of Nova Scotia owned about 0.08% of Automatic Data Processing worth $96,776,000 at the end of the most recent quarter.

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

Insiders Place Their Bets

In related news, VP Brian L. Michaud sold 1,000 shares of the company's stock in a transaction on Friday, February 6th. The shares were sold at an average price of $234.18, for a total transaction of $234,180.00. Following the completion of the transaction, the vice president directly owned 15,310 shares in the company, valued at $3,585,295.80. This represents a 6.13% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP David Foskett sold 266 shares of the stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction 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 trade represents a 2.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 3,515 shares of company stock valued at $887,074 in the last three months. 0.20% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several analysts have commented on ADP shares. Stifel Nicolaus decreased their target price on shares of Automatic Data Processing from $280.00 to $270.00 and set a "hold" rating for the company in a research report on Monday, February 9th. Jefferies Financial Group reaffirmed an "underperform" rating and issued a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Wells Fargo & Company decreased their price objective on shares of Automatic Data Processing from $272.00 to $262.00 and set an "underweight" rating for the company in a report on Thursday, January 29th. Morgan Stanley reduced their price target on Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a research report on Thursday, January 29th. Finally, JPMorgan Chase & Co. cut their price objective on Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating on the stock in a research note on Thursday, January 29th. Two investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $290.00.

Automatic Data Processing Stock Up 0.5%

ADP stock opened at $208.52 on Friday. The stock has a market capitalization of $83.96 billion, a price-to-earnings ratio of 20.05 and a beta of 0.86. The company has a 50-day moving average of $234.58 and a two-hundred 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. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03.

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

Automatic Data Processing announced that its board has authorized a stock buyback plan on Wednesday, January 14th that authorizes the company to repurchase $6.00 billion in shares. This repurchase authorization authorizes the business services provider to reacquire up to 5.8% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's board believes its shares are undervalued.

Automatic Data Processing Dividend Announcement

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

Automatic Data Processing 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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