Hendershot Investments Inc. Has $20.55 Million Stock Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• Hendershot Investments boosted its stake in Automatic Data Processing by 16.2% in Q4 to 79,898 shares worth about $20.55 million, making ADP roughly 2.6% of its portfolio and its 11th-largest holding.
• ADP beat quarterly estimates with $2.62 EPS (vs. $2.57 expected) and $5.36 billion in revenue, reported a 19.96% net margin, and set FY2026 guidance of 10.091–11.011 EPS (consensus ~9.93).
• The board approved a $6.0 billion share repurchase plan (up to ~5.8% of shares) and declared a quarterly dividend of $1.70 ($6.80 annualized, ~3.4% yield; ex-dividend June 12).

Hendershot Investments Inc. boosted its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 16.2% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 79,898 shares of the business services provider's stock after buying an additional 11,163 shares during the period. Automatic Data Processing makes up about 2.6% of Hendershot Investments Inc.'s portfolio, making the stock its 11th largest position. Hendershot Investments Inc.'s holdings in Automatic Data Processing were worth $20,552,000 at the end of the most recent quarter.

Several other institutional investors have also recently bought and sold shares of ADP. Wellington Management Group LLP raised its holdings in 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 buying an additional 2,208,927 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in 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 buying an additional 796,379 shares during the last quarter. Vanguard Group Inc. raised its holdings in 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 buying an additional 389,451 shares during the last quarter. Cardano Risk Management B.V. purchased a new stake in shares of Automatic Data Processing in the third quarter valued at about $99,591,000. Finally, Credit Agricole S A purchased a new stake in shares of Automatic Data Processing in the third quarter valued at about $94,021,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing Price Performance

ADP opened at $200.39 on Friday. The firm has a market cap of $80.69 billion, a P/E ratio of 19.27 and a beta of 0.85. The firm has a 50-day moving average of $209.78 and a 200 day moving average of $244.74. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. Automatic Data Processing, Inc. has a fifty-two week low of $188.16 and a fifty-two week high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued 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 during the quarter, compared to analyst estimates 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 quarterly revenue was up 6.2% on a year-over-year basis. During the same quarter last year, the business earned $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, research analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

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

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be given a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 3.4%. The ex-dividend date is Friday, June 12th. Automatic Data Processing's dividend payout ratio (DPR) is currently 65.38%.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Brian L. Michaud sold 1,000 shares of the stock in a transaction dated 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 owned 15,310 shares in the company, valued at $3,585,295.80. This trade represents a 6.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Christopher D'ambrosio sold 543 shares of the firm'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 transaction of $113,188.35. Following the completion of the transaction, the vice president owned 8,912 shares of the company's stock, valued at $1,857,706.40. This trade represents a 5.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 1,809 shares of company stock worth $410,410 over the last quarter. 0.20% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

ADP has been the subject of several analyst reports. Citigroup lowered their target price on shares of Automatic Data Processing from $303.00 to $265.00 and set a "neutral" rating for the company in a report on Thursday, January 29th. Cantor Fitzgerald initiated coverage on shares of Automatic Data Processing in a report on Tuesday, January 27th. They issued an "overweight" rating and a $306.00 target price for the company. JPMorgan Chase & Co. lowered 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 report on Thursday, January 29th. Guggenheim initiated coverage on shares of Automatic Data Processing in a report on Thursday, March 19th. They issued a "buy" rating and a $270.00 target price for the company. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of Automatic Data Processing in a report on Monday, December 29th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $278.62.

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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