Natixis Advisors LLC Buys 24,619 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Natixis Advisors LLC increased its stake in Automatic Data Processing by 7.0%, buying 24,619 shares to hold 375,986 shares worth about $110.35 million (roughly 0.09% of the company).
• The company’s board authorized a $6.0 billion share repurchase program (up to 5.8% of outstanding shares) and declared a quarterly dividend of $1.70 (annualized $6.80, yield ~3.0%; ex-dividend Mar 13).
• ADP beat quarterly EPS and revenue estimates and set FY2026 guidance of 10.091–11.011 EPS, but several brokers have cut price targets and the consensus rating is Hold with an average target of $290.

Natixis Advisors LLC lifted its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 7.0% during the third quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 375,986 shares of the business services provider's stock after purchasing an additional 24,619 shares during the quarter. Natixis Advisors LLC owned 0.09% of Automatic Data Processing worth $110,352,000 as of its most recent SEC filing.

A number of other institutional investors have also added to or reduced their stakes in ADP. Brighton Jones LLC lifted its holdings in shares of Automatic Data Processing by 92.1% in the fourth quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider's stock worth $2,935,000 after buying an additional 4,808 shares in the last quarter. Bison Wealth LLC grew its stake in Automatic Data Processing by 22.8% during the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider's stock valued at $1,073,000 after acquiring an additional 681 shares in the last quarter. Schnieders Capital Management LLC. increased its holdings in Automatic Data Processing by 21.8% during the 2nd quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider's stock worth $388,000 after acquiring an additional 225 shares during the period. Savant Capital LLC increased its holdings in Automatic Data Processing by 7.0% during the 2nd quarter. Savant Capital LLC now owns 19,981 shares of the business services provider's stock worth $6,162,000 after acquiring an additional 1,310 shares during the period. Finally, Vestmark Advisory Solutions Inc. lifted its stake in Automatic Data Processing by 8.6% in the 2nd quarter. Vestmark Advisory Solutions Inc. now owns 12,160 shares of the business services provider's stock worth $3,750,000 after purchasing an additional 959 shares in the last quarter. Hedge funds and other institutional investors own 80.03% of the company's stock.

Insider Buying and Selling

In other news, VP David Foskett sold 266 shares of the stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total transaction of $63,042.00. Following the completion of the sale, the vice president owned 10,954 shares of the company's stock, valued at approximately $2,596,098. This represents a 2.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the firm's stock in a transaction that occurred on Friday, February 6th. The stock was 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 represents a 6.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 3,515 shares of company stock worth $887,074. Company insiders own 0.20% of the company's stock.

Analyst Ratings Changes

Several brokerages have commented on ADP. Citigroup cut their price target 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. Morgan Stanley decreased their price target on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating on the stock in a report on Thursday, January 29th. Jefferies Financial Group reiterated an "underperform" rating and issued a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Wells Fargo & Company reduced their target price on Automatic Data Processing from $272.00 to $262.00 and set an "underweight" rating for the company in a research report on Thursday, January 29th. Finally, Stifel Nicolaus decreased their target price on Automatic Data Processing from $280.00 to $270.00 and set a "hold" rating on the stock in a research note on Monday, February 9th. Two research 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.com, the company currently has a consensus rating of "Hold" and an average target price of $290.00.

Automatic Data Processing Stock Performance

NASDAQ ADP opened at $226.29 on Monday. The company has a 50-day simple moving average of $238.92 and a two-hundred day simple moving average of $262.83. Automatic Data Processing, Inc. has a 12-month low of $203.26 and a 12-month high of $329.93. The firm has a market cap of $91.11 billion, a price-to-earnings ratio of 21.76 and a beta of 0.86. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, topping the consensus estimate of $2.57 by $0.05. The firm had revenue of $5.36 billion for the quarter, compared to the consensus estimate 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 quarterly revenue was up 6.2% on a year-over-year basis. During the same quarter in the previous 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, equities analysts forecast that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing announced that its Board of Directors has initiated a share repurchase program on Wednesday, January 14th that permits the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization permits the business services provider to buy up to 5.8% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's leadership believes its shares are undervalued.

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders 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%.

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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