Balentine LLC Increases Position in Automatic Data Processing, Inc. $ADP

Key Points

• Balentine LLC increased its stake in Automatic Data Processing by 141.9%, adding 4,836 shares to hold 8,243 shares worth about $2.12 million, and ADP is heavily institutionally owned (≈80.03%) with large additions from firms like Wellington, Mitsubishi and Vanguard.
• ADP beat Q3 estimates and raised guidance, forecasting FY‑2026 adjusted EPS growth of 10–11% and revenue growth of 6–7%; the company also approved a $6.0 billion share buyback and declared a $1.70 quarterly dividend (≈3.2% yield).
• Analyst sentiment is mixed: the consensus rating is "Hold" with a $254.40 target after several price‑target cuts and some upgrades, leaving near‑term views cautious.

Balentine LLC lifted its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 141.9% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 8,243 shares of the business services provider's stock after acquiring an additional 4,836 shares during the quarter. Balentine LLC's holdings in Automatic Data Processing were worth $2,120,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also modified their holdings of ADP. Wellington Management Group LLP increased its position in shares of Automatic Data Processing by 47.8% during the third quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider's stock worth $2,004,691,000 after acquiring an additional 2,208,927 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. increased its position in shares of Automatic Data Processing by 32.1% during the third quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 3,273,700 shares of the business services provider's stock worth $960,831,000 after acquiring an additional 796,379 shares during the last quarter. PFA Pension Forsikringsaktieselskab purchased a new stake in shares of Automatic Data Processing during the fourth quarter worth about $139,636,000. Vanguard Group Inc. increased its position in shares of Automatic Data Processing by 0.9% during the third quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider's stock worth $12,235,907,000 after acquiring an additional 389,451 shares during the last quarter. Finally, Cardano Risk Management B.V. purchased a new stake in shares of Automatic Data Processing during the third quarter worth about $99,591,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the company. TD Cowen lifted their target price on Automatic Data Processing from $208.00 to $216.00 and gave the stock a "hold" rating in a research report on Thursday. Citigroup dropped their target price on Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating on the stock in a research report on Thursday. Morgan Stanley dropped their target price on Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating on the stock in a research report on Tuesday, April 28th. JPMorgan Chase & Co. dropped their target price on Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating on the stock in a research report on Thursday, January 29th. Finally, Stifel Nicolaus dropped their target price on Automatic Data Processing from $270.00 to $240.00 in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $254.40.

Key Automatic Data Processing News

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

• Positive Sentiment: ADP beat Q3 estimates and raised guidance — the company reported EPS above expectations and lifted its FY‑2026 adjusted EPS growth to 10%–11% while raising revenue growth to 6%–7%, supporting stronger near‑term fundamentals and subscription demand. ADP forecasts FY 2026 adjusted EPS growth
• Positive Sentiment: UBS raised its price target to $218 (neutral rating) — a modest upgrade that signals some analysts see limited near‑term downside after the beat and guidance lift. ADP Price Target Raised to $218 at UBS Group
• Positive Sentiment: TD Cowen issued a positive forecast — another analyst backing a constructive view on ADP’s outlook, which can support buying interest after the earnings/guidance update. TD Cowen Issues Positive Forecast
• Positive Sentiment: Mizuho cut its target but left a high $305 target (still large upside) — shows some firms trimmed overly ambitious targets while maintaining a bullish long‑run view. Mizuho adjusts ADP PT to $305
• Neutral Sentiment: Citigroup cut its target to $230 and kept a neutral rating — less bullish than before but still implies upside; this reflects mixed analyst sentiment after the quarter. ADP Given New $230.00 Price Target at Citigroup
• Neutral Sentiment: Stifel lowered its PT to $240 (still above the current price) — a downgrade in target level but not a sell signal; suggests tempered upside expectations. Stifel Nicolaus adjusts ADP PT to $240
• Neutral Sentiment: Robert W. Baird trimmed its target to $270 — still a material upside, but the cut contributes to mixed analyst signals. Baird adjusts ADP PT to $270
• Neutral Sentiment: Cantor Fitzgerald cut its PT to $244 but kept an overweight rating — indicates confidence in longer‑term upside despite trimming near‑term valuation. Cantor Fitzgerald adjusts ADP PT to $244
• Negative Sentiment: Jefferies cut its price target sharply to $190 — the only firm in this batch with a below‑current‑price target, which could weigh on risk‑sentiment or prompt cautious positioning. Jefferies adjusts ADP PT to $190

Insider Activity at Automatic Data Processing

In related news, VP Brian L. Michaud sold 1,000 shares of the business's stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $234.18, for a total value of $234,180.00. Following the completion of the sale, the vice president directly owned 15,310 shares of the company's stock, valued at $3,585,295.80. The trade was a 6.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP Christopher D'ambrosio sold 543 shares of the business's stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $208.45, for a total value of $113,188.35. Following the completion of the sale, the vice president directly owned 8,912 shares of the company's stock, valued at approximately $1,857,706.40. This represents a 5.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 1,809 shares of company stock valued at $410,410 over the last three months. 0.20% of the stock is owned by insiders.

Automatic Data Processing Stock Up 1.1%

Shares of Automatic Data Processing stock opened at $214.21 on Friday. The company has a quick ratio of 1.03, a current ratio of 1.04 and a debt-to-equity ratio of 0.63. The firm has a market cap of $86.25 billion, a P/E ratio of 19.98 and a beta of 0.83. Automatic Data Processing, Inc. has a fifty-two week low of $188.16 and a fifty-two week high of $329.93. The business has a 50-day moving average price of $206.67 and a 200 day moving average price of $238.32.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The business services provider reported $3.37 earnings per share for the quarter, beating the consensus estimate of $3.30 by $0.07. The firm had revenue of $5.94 billion during the quarter, compared to analyst estimates of $5.85 billion. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.Automatic Data Processing's quarterly revenue was up 7.0% on a year-over-year basis. During the same period in the previous year, the company earned $3.06 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, sell-side analysts forecast that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently disclosed 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 of this dividend is Friday, June 12th. Automatic Data Processing's payout ratio is currently 63.43%.

Automatic Data Processing declared that its board has approved a stock buyback plan on Wednesday, January 14th that authorizes the company to buyback $6.00 billion in shares. This buyback authorization authorizes the business services provider to purchase up to 5.8% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's management believes its shares are undervalued.

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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