Mackenzie Financial Corp Decreases Stock Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• Mackenzie Financial reduced its position in ADP by 16.2% in Q3, selling 288,849 shares and now holds 1,495,929 shares worth $439.1M (≈0.37% of the company); institutional investors own ~80% while insiders hold just 0.20% and have sold 3,515 shares (~$887k) in the last 90 days.
• ADP modestly beat quarterly expectations (EPS $2.62 vs. $2.57) with revenue up 6.2% YOY and set FY2026 guidance at 10.091–11.011 EPS, while the board authorized a $6.0 billion share buyback (~5.8% of shares) and approved a $1.70 quarterly dividend (3.1% yield).
• Several analysts have trimmed price targets and ratings recently, leaving ADP with a consensus "Hold" rating and a consensus target price of $290.

Mackenzie Financial Corp reduced its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 16.2% in the third quarter, according to its most recent filing with the SEC. The fund owned 1,495,929 shares of the business services provider's stock after selling 288,849 shares during the quarter. Mackenzie Financial Corp owned about 0.37% of Automatic Data Processing worth $439,055,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. Magnetar Financial LLC purchased a new position in shares of Automatic Data Processing in the 3rd quarter worth $1,603,000. Van ECK Associates Corp raised its position in shares of Automatic Data Processing by 0.7% during the 3rd quarter. Van ECK Associates Corp now owns 121,412 shares of the business services provider's stock valued at $35,634,000 after buying an additional 798 shares in the last quarter. Capital Research Global Investors raised its position in shares of Automatic Data Processing by 1.5% during the 3rd quarter. Capital Research Global Investors now owns 8,021,194 shares of the business services provider's stock valued at $2,354,220,000 after buying an additional 116,074 shares in the last quarter. Bank of Montreal Can lifted its holdings in shares of Automatic Data Processing by 19.3% in the 3rd quarter. Bank of Montreal Can now owns 826,174 shares of the business services provider's stock valued at $242,482,000 after acquiring an additional 133,706 shares during the last quarter. Finally, Legal & General Group Plc lifted its holdings in shares of Automatic Data Processing by 3.0% in the 3rd quarter. Legal & General Group Plc now owns 2,882,264 shares of the business services provider's stock valued at $845,944,000 after acquiring an additional 84,210 shares during the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, VP Christopher D'ambrosio sold 543 shares of the business's stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total transaction of $142,423.47. Following the completion of the transaction, the vice president owned 9,998 shares in the company, valued at $2,622,375.42. The trade was a 5.15% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the company's stock in a transaction 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 in the company, valued at $3,585,295.80. This trade represents a 6.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 3,515 shares of company stock worth $887,074 in the last 90 days. 0.20% of the stock is owned by insiders.

Analyst Ratings Changes

ADP has been the topic of several analyst reports. Jefferies Financial Group reissued an "underperform" rating and set a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Morgan Stanley lowered 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 note on Thursday, January 29th. Stifel Nicolaus dropped their target price on Automatic Data Processing from $280.00 to $270.00 and set a "hold" rating for the company in a report on Monday, February 9th. Wells Fargo & Company cut their target price on Automatic Data Processing from $272.00 to $262.00 and set an "underweight" rating on the stock in a research report on Thursday, January 29th. Finally, JPMorgan Chase & Co. decreased their price target on Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating on the stock in a report on Thursday, January 29th. Two analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Automatic Data Processing presently has an average rating of "Hold" and a consensus target price of $290.00.

Automatic Data Processing Stock Performance

Shares of NASDAQ:ADP opened at $217.37 on Wednesday. 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 12 month low of $203.26 and a 12 month high of $329.93. The company has a market capitalization of $87.52 billion, a price-to-earnings ratio of 20.90 and a beta of 0.86. The firm's 50-day moving average is $237.35 and its 200 day moving average is $261.62.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, topping the consensus estimate 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 business had revenue of $5.36 billion during the quarter, compared to the consensus estimate of $5.34 billion. During the same quarter last year, the firm earned $2.35 earnings per share. The firm's quarterly revenue was up 6.2% compared to the same quarter last year. 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 EPS for the current year.

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

Automatic Data Processing Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be paid a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing's dividend payout ratio (DPR) is currently 65.38%.

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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