M&T Bank Corp Sells 298,093 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• M&T Bank Corp reduced its stake in Automatic Data Processing by 92.9% in Q4, selling 298,093 shares and leaving 22,633 shares valued at $5.822 million.
• ADP's board authorized a $6.00 billion stock buyback (up to ~5.8% of shares) and declared a quarterly dividend of $1.70 (annualized $6.80, ~3.5% yield); the company also reported a slight EPS beat and set FY2026 guidance of 10.091–11.011 EPS.
• Analysts are mixed with a MarketBeat consensus rating of Hold and an average price target of $273.85, while individual analyst views range from Strong Buy to Underweight.

M&T Bank Corp reduced its stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 92.9% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 22,633 shares of the business services provider's stock after selling 298,093 shares during the quarter. M&T Bank Corp's holdings in Automatic Data Processing were worth $5,822,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Imprint Wealth LLC bought a new stake in Automatic Data Processing in the third quarter worth $25,000. TruNorth Capital Management LLC bought a new position in shares of Automatic Data Processing during the third quarter valued at $28,000. Cloud Capital Management LLC bought a new position in shares of Automatic Data Processing during the third quarter valued at $29,000. Board of the Pension Protection Fund purchased a new position in shares of Automatic Data Processing in the 4th quarter worth about $31,000. Finally, Y.D. More Investments Ltd bought a new position in Automatic Data Processing in the 3rd quarter worth about $32,000. Hedge funds and other institutional investors own 80.03% of the company's stock.

Wall Street Analyst Weigh In

Several analysts recently commented on the stock. Weiss Ratings reissued a "hold (c+)" rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Guggenheim began 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. Morgan Stanley dropped their target price on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating on the stock in a research note on Thursday, January 29th. Wells Fargo & Company cut their price objective on Automatic Data Processing from $262.00 to $214.00 and set an "underweight" rating for the company in a research note on Friday, March 27th. Finally, JPMorgan Chase & Co. reduced 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. One investment 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. According to data from MarketBeat, Automatic Data Processing currently has a consensus rating of "Hold" and an average price target of $273.85.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of the stock in a transaction dated 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 represents a 5.74% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Brian L. Michaud sold 1,000 shares of the firm's stock in a transaction dated Friday, February 6th. The shares were 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 approximately $3,585,295.80. The trade was a 6.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,809 shares of company stock worth $410,410 in the last 90 days. 0.20% of the stock is currently owned by corporate insiders.

Automatic Data Processing Stock Down 1.0%

Shares of ADP opened at $196.53 on Friday. The business's 50 day moving average is $207.37 and its 200 day moving average is $240.58. 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 $188.16 and a 12-month high of $329.93. The company has a market capitalization of $79.13 billion, a PE ratio of 18.90 and a beta of 0.85.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, topping the consensus estimate of $2.57 by $0.05. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The business 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 company posted $2.35 EPS. The firm's revenue for the quarter 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 expect that Automatic Data Processing, Inc. will post 10.96 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

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. This represents a $6.80 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date is Friday, June 12th. Automatic Data Processing's payout ratio is currently 65.38%.

Automatic Data Processing announced that its Board of Directors has initiated a stock buyback 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 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 shares are undervalued.

Automatic Data Processing 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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