PFA Pension Forsikringsaktieselskab Acquires New Shares in Automatic Data Processing, Inc. $ADP

Key Points

• PFA Pension Forsikringsaktieselskab acquired a new stake of 538,033 shares in Automatic Data Processing (ADP), valued at about $139.6 million and representing roughly 0.13% of the company at quarter‑end.
• ADP beat Q3 expectations with $3.37 EPS (vs. $3.30) and $5.94B revenue, set FY‑2026 EPS guidance of 11.01–11.11, authorized a $6.0 billion share buyback (~5.8% of shares), and pays a quarterly dividend of $1.70 (approximately a 3.2% yield).
• Analyst sentiment is mixed — MarketBeat shows a consensus rating of Hold with an average price target of $254.40, while individual broker targets range from about $190 to $305.

PFA Pension Forsikringsaktieselskab acquired a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) in the 4th quarter, according to the company in its most recent disclosure with the SEC. The fund acquired 538,033 shares of the business services provider's stock, valued at approximately $139,636,000. PFA Pension Forsikringsaktieselskab owned about 0.13% of Automatic Data Processing at the end of the most recent quarter.

Several other institutional investors and hedge funds have also modified their holdings of the business. Vanguard Group Inc. lifted its stake in shares of Automatic Data Processing by 0.9% in the 3rd quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider's stock valued at $12,235,907,000 after purchasing an additional 389,451 shares during the last quarter. Capital Research Global Investors lifted its position in 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 worth $2,354,220,000 after acquiring an additional 116,074 shares during the last quarter. Wellington Management Group LLP lifted its position in Automatic Data Processing by 47.8% during the 3rd quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider's stock worth $2,004,691,000 after acquiring an additional 2,208,927 shares during the last quarter. Invesco Ltd. lifted its position in Automatic Data Processing by 5.7% during the 3rd quarter. Invesco Ltd. now owns 4,837,993 shares of the business services provider's stock worth $1,419,951,000 after acquiring an additional 261,312 shares during the last quarter. Finally, Ameriprise Financial Inc. lifted its position in Automatic Data Processing by 3.3% during the 3rd quarter. Ameriprise Financial Inc. now owns 4,323,554 shares of the business services provider's stock worth $1,264,118,000 after acquiring an additional 136,142 shares during the last quarter. Institutional investors and hedge funds own 80.03% of the company's stock.

Insider Activity

In other news, VP David Foskett sold 266 shares of the company's stock in a transaction dated Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction of $63,042.00. Following the completion of the transaction, 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Christopher D'ambrosio sold 543 shares of the company's 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 transaction, the vice president directly owned 8,912 shares of the company's stock, valued at $1,857,706.40. This represents a 5.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 1,809 shares of company stock valued at $410,410. Insiders own 0.20% of the company's stock.

Automatic Data Processing Stock Up 1.1%

Shares of ADP opened at $214.21 on Friday. The company has a 50-day simple moving average of $206.67 and a 200-day simple moving average of $238.64. The firm has a market capitalization of $86.25 billion, a P/E ratio of 19.98 and a beta of 0.85. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.03 and a current ratio of 1.04. 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, April 29th. The business services provider reported $3.37 EPS for the quarter, beating analysts' consensus estimates of $3.30 by $0.07. The business had revenue of $5.94 billion during the quarter, compared to analyst estimates of $5.85 billion. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The firm's revenue for the quarter was up 7.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $3.06 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, equities research analysts expect that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current year.

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

Automatic Data Processing Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be given a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.2%. Automatic Data Processing's dividend payout ratio is currently 63.43%.

Analyst Ratings Changes

ADP has been the subject of a number of research analyst reports. BMO Capital Markets cut their target price on shares of Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating for the company in a research report on Tuesday, April 7th. Morgan Stanley cut their target price on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a research report on Tuesday. Jefferies Financial Group cut their target price on shares of Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday. Wells Fargo & Company cut their target price on shares of Automatic Data Processing from $262.00 to $214.00 and set an "underweight" rating for the company in a research report on Friday, March 27th. Finally, TD Cowen boosted their target price on shares of Automatic Data Processing from $208.00 to $216.00 and gave the stock a "hold" rating in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $254.40.

Key Automatic Data Processing News

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: ADP beat Q3 estimates and raised guidance — the company reported EPS above expectations and lifted its FY‑2026 adjusted EPS growth to 10%–11% while raising revenue growth to 6%–7%, supporting stronger near‑term fundamentals and subscription demand. ADP forecasts FY 2026 adjusted EPS growth
• Positive Sentiment: UBS raised its price target to $218 (neutral rating) — a modest upgrade that signals some analysts see limited near‑term downside after the beat and guidance lift. ADP Price Target Raised to $218 at UBS Group
• Positive Sentiment: TD Cowen issued a positive forecast — another analyst backing a constructive view on ADP’s outlook, which can support buying interest after the earnings/guidance update. TD Cowen Issues Positive Forecast
• Positive Sentiment: Mizuho cut its target but left a high $305 target (still large upside) — shows some firms trimmed overly ambitious targets while maintaining a bullish long‑run view. Mizuho adjusts ADP PT to $305
• Neutral Sentiment: Citigroup cut its target to $230 and kept a neutral rating — less bullish than before but still implies upside; this reflects mixed analyst sentiment after the quarter. ADP Given New $230.00 Price Target at Citigroup
• Neutral Sentiment: Stifel lowered its PT to $240 (still above the current price) — a downgrade in target level but not a sell signal; suggests tempered upside expectations. Stifel Nicolaus adjusts ADP PT to $240
• Neutral Sentiment: Robert W. Baird trimmed its target to $270 — still a material upside, but the cut contributes to mixed analyst signals. Baird adjusts ADP PT to $270
• Neutral Sentiment: Cantor Fitzgerald cut its PT to $244 but kept an overweight rating — indicates confidence in longer‑term upside despite trimming near‑term valuation. Cantor Fitzgerald adjusts ADP PT to $244
• Negative Sentiment: Jefferies cut its price target sharply to $190 — the only firm in this batch with a below‑current‑price target, which could weigh on risk‑sentiment or prompt cautious positioning. Jefferies adjusts ADP PT to $190

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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