Munich Reinsurance Co Stock Corp in Munich Buys New Shares in Automatic Data Processing, Inc. $ADP

Key Points

• Munich Re purchased a new position of 23,554 shares of Automatic Data Processing (ADP) in Q3, valued at about $6.91 million.
• 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 ($6.80 annualized, ~3.0% yield).
• ADP beat quarterly estimates with $2.62 EPS on $5.36 billion revenue (revenue +6.2% y/y), and issued FY2026 guidance of $10.091–$11.011 EPS versus analysts' average forecast of about $9.93.

Munich Reinsurance Co Stock Corp in Munich purchased a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 23,554 shares of the business services provider's stock, valued at approximately $6,913,000.

Other large investors have also recently added to or reduced their stakes in the company. Howard Hughes Medical Institute acquired a new position in Automatic Data Processing during the second quarter worth approximately $27,000. TruNorth Capital Management LLC bought a new position in shares of Automatic Data Processing during the 3rd quarter worth approximately $28,000. Cloud Capital Management LLC acquired a new position in shares of Automatic Data Processing during the 3rd quarter worth approximately $29,000. Y.D. More Investments Ltd acquired a new stake in Automatic Data Processing during the 3rd quarter valued at $32,000. Finally, AlphaQuest LLC bought a new position in Automatic Data Processing during the third quarter worth $38,000. Institutional investors and hedge funds own 80.03% of the company's stock.

Insider Activity

In related news, VP Christopher D'ambrosio sold 543 shares of the stock in a transaction that occurred on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total transaction of $142,423.47. Following the sale, the vice president owned 9,998 shares in the company, valued at approximately $2,622,375.42. This trade represents a 5.15% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Brian L. Michaud sold 1,000 shares of the firm'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 sale, the vice president directly owned 15,310 shares in the company, valued at approximately $3,585,295.80. This represents a 6.13% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 3,515 shares of company stock worth $887,074. 0.20% of the stock is owned by company insiders.

Automatic Data Processing Stock Up 1.6%

NASDAQ ADP opened at $226.29 on Friday. 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 1-year low of $203.26 and a 1-year high of $329.93. The company has a 50 day moving average of $238.92 and a 200-day moving average of $263.15. The company has a market cap of $91.11 billion, a price-to-earnings ratio of 21.76 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 EPS 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 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 company's revenue was up 6.2% on a year-over-year basis. During the same quarter 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, equities research analysts expect that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing declared that its board has initiated a share buyback plan on Wednesday, January 14th that allows the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization allows the business services provider to reacquire up to 5.8% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's leadership believes its stock is undervalued.

Automatic Data Processing Announces Dividend

The business 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 $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing's payout ratio is 65.38%.

Wall Street Analysts Forecast Growth

ADP has been the topic of several research analyst reports. Wells Fargo & Company dropped their price objective on shares of 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. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Automatic Data Processing in a report on Monday, December 29th. Cantor Fitzgerald started coverage on shares of Automatic Data Processing in a research note on Tuesday, January 27th. They issued an "overweight" rating and a $306.00 price target on the stock. Citigroup cut their price objective on shares of Automatic Data Processing from $303.00 to $265.00 and set a "neutral" rating for the company in a research report on Thursday, January 29th. Finally, Stifel Nicolaus reduced their price objective 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. Two analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $290.00.

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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