Comerica Bank Lowers Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• Comerica Bank trimmed its stake in Automatic Data Processing by 3.6% in Q4, selling 9,754 shares to finish the quarter with 260,999 shares valued at about $67.14 million (≈0.06% of ADP).
• ADP beat Q4 estimates with $2.62 EPS and $5.36B revenue (up 6.2% YoY), set FY2026 guidance of 10.091–11.011 EPS, declared a $1.70 quarterly dividend (3.5% yield), and authorized a $6.0 billion share buyback.

Comerica Bank decreased its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 3.6% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 260,999 shares of the business services provider's stock after selling 9,754 shares during the quarter. Comerica Bank owned approximately 0.06% of Automatic Data Processing worth $67,137,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Imprint Wealth LLC acquired a new position in shares of Automatic Data Processing in the 3rd quarter valued at about $25,000. TruNorth Capital Management LLC purchased a new stake in shares of Automatic Data Processing during the 3rd quarter worth about $28,000. Cloud Capital Management LLC purchased a new stake in shares of Automatic Data Processing during the 3rd quarter worth about $29,000. Board of the Pension Protection Fund purchased a new stake in shares of Automatic Data Processing during the 4th quarter worth about $31,000. Finally, Y.D. More Investments Ltd purchased a new stake in shares of Automatic Data Processing during the 3rd quarter worth about $32,000. Hedge funds and other institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Performance

Shares of ADP opened at $196.53 on Monday. The business's 50 day moving average is $207.37 and its two-hundred day moving average is $240.22. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $329.93. The firm has a market cap of $79.13 billion, a price-to-earnings ratio of 18.90 and a beta of 0.85. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.57 by $0.05. The company had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.Automatic Data Processing's quarterly revenue was up 6.2% on a year-over-year basis. During the same period in the prior year, the company posted $2.35 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Analysts forecast that Automatic Data Processing, Inc. will post 10.96 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 12th will be given a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a dividend yield of 3.5%. The ex-dividend date of this dividend is Friday, June 12th. Automatic Data Processing's dividend payout ratio is currently 65.38%.

Automatic Data Processing announced that its board has initiated a stock buyback plan on Wednesday, January 14th that permits the company to buyback $6.00 billion in outstanding shares. This buyback authorization permits the business services provider to purchase up to 5.8% of its shares through open market purchases. Shares buyback plans are often an indication that the company's management believes its stock is undervalued.

Analysts Set New Price Targets

ADP has been the topic of a number of recent analyst reports. UBS Group cut their target price on Automatic Data Processing from $220.00 to $210.00 and set a "neutral" rating on the stock in a research report on Monday, April 13th. Cantor Fitzgerald cut their target price on Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating on the stock in a research report on Tuesday, April 21st. JPMorgan Chase & Co. cut 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. Wells Fargo & Company cut their target price on Automatic Data Processing from $262.00 to $214.00 and set an "underweight" rating on the stock in a research report on Friday, March 27th. Finally, Citigroup cut their target price on Automatic Data Processing from $303.00 to $265.00 and set a "neutral" rating on the stock in a research report on Thursday, January 29th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $273.85.

Insider Activity at Automatic Data Processing

In related news, VP Brian L. Michaud sold 1,000 shares of the company's stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction of $234,180.00. Following the sale, the vice president directly owned 15,310 shares of the company's stock, valued at approximately $3,585,295.80. This represents a 6.13% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Christopher D'ambrosio sold 543 shares of the company'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 value of $113,188.35. Following the sale, the vice president directly owned 8,912 shares in the company, valued at approximately $1,857,706.40. This represents a 5.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 1,809 shares of company stock valued at $410,410. Corporate insiders own 0.20% of the company's stock.

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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