Merit Financial Group LLC Has $6.46 Million Stake in Automatic Data Processing, Inc. $ADP

Key Points

• Merit Financial Group LLC increased its holding in Automatic Data Processing by 30.8%, buying 5,919 shares to own 25,122 shares valued at about $6.46 million per its latest SEC filing.
• ADP's board authorized a $6.0 billion share buyback (up to 5.8% of outstanding shares) and declared a quarterly dividend of $1.70 (annualized $6.80, ~3.4% yield), underscoring a focus on shareholder returns.
• Insiders sold 1,809 shares (~$410,410) in the past three months while analysts remain mixed (consensus "Hold," average target $278.62); ADP did beat Q4 EPS and set FY2026 guidance of roughly 10.09–11.01 EPS.

Merit Financial Group LLC boosted its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 30.8% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 25,122 shares of the business services provider's stock after purchasing an additional 5,919 shares during the period. Merit Financial Group LLC's holdings in Automatic Data Processing were worth $6,462,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the business. Fairvoy Private Wealth LLC increased its holdings in Automatic Data Processing by 4.2% during the 3rd quarter. Fairvoy Private Wealth LLC now owns 863 shares of the business services provider's stock valued at $253,000 after purchasing an additional 35 shares in the last quarter. Baker Tilly Wealth Management LLC increased its holdings in Automatic Data Processing by 2.7% during the 3rd quarter. Baker Tilly Wealth Management LLC now owns 1,431 shares of the business services provider's stock valued at $420,000 after purchasing an additional 38 shares in the last quarter. BSW Wealth Partners increased its holdings in Automatic Data Processing by 1.1% during the 3rd quarter. BSW Wealth Partners now owns 3,746 shares of the business services provider's stock valued at $1,099,000 after purchasing an additional 39 shares in the last quarter. CGC Financial Services LLC increased its holdings in Automatic Data Processing by 13.7% during the 3rd quarter. CGC Financial Services LLC now owns 323 shares of the business services provider's stock valued at $95,000 after purchasing an additional 39 shares in the last quarter. Finally, Coston McIsaac & Partners increased its holdings in Automatic Data Processing by 13.2% during the 3rd quarter. Coston McIsaac & Partners now owns 335 shares of the business services provider's stock valued at $98,000 after purchasing an additional 39 shares in the last quarter. 80.03% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Automatic Data Processing

In other news, VP Christopher D'ambrosio sold 543 shares of the business's stock in a transaction dated Monday, March 16th. The stock was 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 directly owned 8,912 shares in the company, valued at approximately $1,857,706.40. The trade was a 5.74% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the business's stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $234.18, for a total value of $234,180.00. Following the transaction, the vice president owned 15,310 shares of the company's stock, valued at $3,585,295.80. The trade was a 6.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,809 shares of company stock worth $410,410 in the last three months. Insiders own 0.20% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the company. Morgan Stanley dropped their price target on Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a report on Thursday, January 29th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Cantor Fitzgerald assumed coverage on Automatic Data Processing in a research report on Tuesday, January 27th. They issued an "overweight" rating and a $306.00 price objective on the stock. Stifel Nicolaus decreased their price objective on Automatic Data Processing from $280.00 to $270.00 and set a "hold" rating on the stock in a research report on Monday, February 9th. Finally, Citigroup decreased their price objective 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 equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $278.62.

Automatic Data Processing Stock Up 0.0%

Shares of ADP opened at $200.47 on Friday. The firm has a market capitalization of $80.72 billion, a price-to-earnings ratio of 19.28 and a beta of 0.85. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. The business's fifty day moving average price is $209.17 and its two-hundred day moving average price is $243.75. Automatic Data Processing, Inc. has a 52 week low of $188.16 and a 52 week high of $329.93.

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 EPS for the quarter, beating analysts' consensus estimates of $2.57 by $0.05. The firm 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%.The business's quarterly revenue was up 6.2% compared to the same quarter last year. During the same period last year, the company earned $2.35 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, analysts predict that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing declared that its board has authorized a stock repurchase program 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 reacquire up to 5.8% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

Automatic Data Processing Announces Dividend

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

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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