Farther Finance Advisors LLC Buys 5,071 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Farther Finance Advisors LLC boosted its stake in Automatic Data Processing by 36.3%, buying 5,071 shares to hold 19,027 shares worth $4.894 million per its latest 13F filing.
• ADP beat quarterly expectations with EPS of $2.62 (vs. $2.57 expected) and revenue of $5.36 billion (+6.2% YoY), and set FY2026 guidance of 10.091–11.011 EPS.
• The board authorized a $6.00 billion share buyback (up to 5.8% of shares) and declared a quarterly dividend of $1.70 (annualized yield ~3.4%, ex-dividend June 12).

Farther Finance Advisors LLC lifted its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 36.3% during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 19,027 shares of the business services provider's stock after purchasing an additional 5,071 shares during the quarter. Farther Finance Advisors LLC's holdings in Automatic Data Processing were worth $4,894,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Sage Mountain Advisors LLC lifted its position in Automatic Data Processing by 19.5% during the fourth quarter. Sage Mountain Advisors LLC now owns 2,677 shares of the business services provider's stock worth $689,000 after purchasing an additional 437 shares during the period. Freestone Capital Holdings LLC increased its holdings in Automatic Data Processing by 8.5% in the 4th quarter. Freestone Capital Holdings LLC now owns 18,794 shares of the business services provider's stock valued at $4,834,000 after buying an additional 1,477 shares during the period. Tyche Wealth Partners LLC raised its position in shares of Automatic Data Processing by 92.3% in the 4th quarter. Tyche Wealth Partners LLC now owns 4,484 shares of the business services provider's stock valued at $1,154,000 after buying an additional 2,152 shares in the last quarter. Natural Investments LLC raised its position in shares of Automatic Data Processing by 6.6% in the 4th quarter. Natural Investments LLC now owns 3,759 shares of the business services provider's stock valued at $967,000 after buying an additional 234 shares in the last quarter. Finally, Patton Fund Management Inc. lifted its holdings in shares of Automatic Data Processing by 12.9% during the 4th quarter. Patton Fund Management Inc. now owns 851 shares of the business services provider's stock worth $219,000 after acquiring an additional 97 shares during the period. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Price Performance

Shares of NASDAQ:ADP opened at $200.39 on Friday. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year 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. The company has a market cap of $80.69 billion, a price-to-earnings ratio of 19.27 and a beta of 0.85. The firm has a 50 day simple moving average of $209.78 and a 200 day simple moving average of $244.74.

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

Automatic Data Processing announced that its board has authorized a share buyback program on Wednesday, January 14th that allows the company to buyback $6.00 billion in outstanding shares. This buyback authorization allows the business services provider to purchase up to 5.8% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board of directors believes its stock is undervalued.

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 given a dividend of $1.70 per share. The ex-dividend date is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a yield of 3.4%. Automatic Data Processing's payout ratio is currently 65.38%.

Insiders Place Their Bets

In other news, VP David Foskett sold 266 shares of the business's stock in a transaction dated Thursday, February 5th. The stock was sold at an average price of $237.00, for a total transaction of $63,042.00. Following the sale, the vice president directly owned 10,954 shares in the company, valued at approximately $2,596,098. The trade was a 2.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Brian L. Michaud sold 1,000 shares of the company's stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $234.18, for a total value of $234,180.00. Following the completion of the transaction, the vice president directly owned 15,310 shares of the company's stock, valued at $3,585,295.80. This represents a 6.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 1,809 shares of company stock valued at $410,410 in the last 90 days. Corporate insiders own 0.20% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the stock. 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. Weiss Ratings restated a "hold (c+)" rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Citigroup reduced their target price on Automatic Data Processing from $303.00 to $265.00 and set a "neutral" rating on the stock in a report on Thursday, January 29th. UBS Group lowered their price target on Automatic Data Processing from $220.00 to $210.00 and set a "neutral" rating for the company in a report on Monday. Finally, Morgan Stanley dropped their price objective 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. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, Automatic Data Processing has an average rating of "Hold" and a consensus target price of $278.62.

About Automatic Data Processing

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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