CPC Advisors LLC Reduces Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• CPC Advisors cut its stake in Automatic Data Processing by 82.7% in Q4, selling 5,251 shares and leaving 1,098 shares valued at about $282,000.
• ADP beat Q4 estimates (EPS $2.62 vs. $2.57) with revenue of $5.36B (+6.2% YoY), set FY2026 guidance of 10.091–11.011 EPS, authorized a $6.0 billion share buyback and declared a $1.70 quarterly dividend (3.4% yield).
• Analyst sentiment is mixed — MarketBeat shows an average rating of Hold with a consensus target of $273.85, and several firms have recently lowered price targets.

CPC Advisors LLC decreased its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 82.7% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,098 shares of the business services provider's stock after selling 5,251 shares during the period. CPC Advisors LLC's holdings in Automatic Data Processing were worth $282,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently modified their holdings of the stock. BSW Wealth Partners increased its position in shares of Automatic Data Processing by 1.1% in the 3rd quarter. BSW Wealth Partners now owns 3,746 shares of the business services provider's stock worth $1,099,000 after purchasing an additional 39 shares during the last quarter. CGC Financial Services LLC grew its position in Automatic Data Processing by 13.7% in the 3rd quarter. CGC Financial Services LLC now owns 323 shares of the business services provider's stock worth $95,000 after purchasing an additional 39 shares during the last quarter. Coston McIsaac & Partners grew its position in Automatic Data Processing by 13.2% in the 3rd quarter. Coston McIsaac & Partners now owns 335 shares of the business services provider's stock worth $98,000 after purchasing an additional 39 shares during the last quarter. Northcape Wealth Management LLC grew its position in Automatic Data Processing by 0.6% in the 4th quarter. Northcape Wealth Management LLC now owns 6,577 shares of the business services provider's stock worth $1,692,000 after purchasing an additional 39 shares during the last quarter. Finally, Private Advisory Group LLC lifted its stake in shares of Automatic Data Processing by 4.8% in the 3rd quarter. Private Advisory Group LLC now owns 867 shares of the business services provider's stock worth $254,000 after acquiring an additional 40 shares during the period. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Price Performance

NASDAQ ADP opened at $201.69 on Thursday. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $329.93. The company has a fifty day simple moving average of $207.91 and a 200 day simple moving average of $241.90. The company has a market cap of $81.21 billion, a P/E ratio of 19.39 and a beta of 0.85.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, beating analysts' consensus estimates of $2.57 by $0.05. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The firm had revenue of $5.36 billion during the quarter, compared to the consensus estimate of $5.34 billion. During the same period in the prior year, the firm earned $2.35 EPS. The business's revenue 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. On average, sell-side analysts predict that Automatic Data Processing, Inc. will post 10.96 EPS for the current year.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be issued a $1.70 dividend. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a yield of 3.4%. Automatic Data Processing's dividend payout ratio is 65.38%.

Automatic Data Processing announced that its board has authorized a stock repurchase 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 generally a sign that the company's management believes its stock is undervalued.

Analysts Set New Price Targets

ADP has been the subject of a number of research analyst reports. Cantor Fitzgerald reduced their price target on shares of Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating for the company in a research note on Tuesday. Morgan Stanley cut their price target on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating on the stock in a report on Thursday, January 29th. Weiss Ratings restated a "hold (c+)" rating on shares of Automatic Data Processing in a report on Monday, December 29th. Guggenheim initiated coverage on shares of Automatic Data Processing in a research note on Thursday, March 19th. They issued a "buy" rating and a $270.00 price objective on the stock. Finally, JPMorgan Chase & Co. decreased their target price on shares of Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating for the company in a research report on Thursday, January 29th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Automatic Data Processing has an average rating of "Hold" and a consensus target price of $273.85.

Insider Activity

In other news, VP Christopher D'ambrosio sold 543 shares of the stock in a transaction 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 completion of the transaction, the vice president owned 8,912 shares in the company, valued at approximately $1,857,706.40. This represents a 5.74% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Brian L. Michaud sold 1,000 shares of the stock in a transaction dated 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 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 SEC filing for this sale provides additional information. In the last 90 days, insiders sold 1,809 shares of company stock worth $410,410. 0.20% of the stock is currently owned by corporate insiders.

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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