Sumitomo Mitsui Trust Group Inc. Sells 25,862 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Sumitomo Mitsui Trust Group reduced its stake in Automatic Data Processing by 2.5%, selling 25,862 shares and finishing the quarter with 1,006,685 shares (about 0.25% ownership) valued at $258.95 million.
• ADP declared a quarterly dividend of $1.70 (annualized $6.80, ~3.6% yield; ex‑dividend June 12, payable July 1) and its board approved a $6.0 billion share buyback program authorizing repurchases of up to 5.8% of outstanding shares.

Sumitomo Mitsui Trust Group Inc. lessened its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 2.5% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 1,006,685 shares of the business services provider's stock after selling 25,862 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned about 0.25% of Automatic Data Processing worth $258,950,000 at the end of the most recent quarter.

A number of other large investors have also recently modified their holdings of the business. Fairvoy Private Wealth LLC boosted its position in shares of 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 acquiring an additional 35 shares during the last quarter. Central Pacific Bank Trust Division boosted its position in shares of Automatic Data Processing by 4.3% during the 3rd quarter. Central Pacific Bank Trust Division now owns 889 shares of the business services provider's stock valued at $261,000 after acquiring an additional 37 shares during the last quarter. Baker Tilly Wealth Management LLC boosted its position in shares of 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 acquiring an additional 38 shares during the last quarter. BSW Wealth Partners boosted its position in shares of 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 acquiring an additional 39 shares during the last quarter. Finally, CGC Financial Services LLC boosted its position in shares of 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 acquiring an additional 39 shares during the last quarter. Institutional investors own 80.03% of the company's stock.

Automatic Data Processing Stock Performance

Shares of NASDAQ ADP opened at $188.79 on Monday. The stock has a market cap of $76.01 billion, a price-to-earnings ratio of 18.15 and a beta of 0.85. 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 $188.16 and a 1-year high of $329.93. The stock's 50-day moving average is $213.06 and its 200 day moving average is $246.73.

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 earnings per share for the quarter, beating analysts' consensus estimates of $2.57 by $0.05. The company had revenue of $5.36 billion for the quarter, compared to analysts' expectations of $5.34 billion. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.Automatic Data Processing's revenue for the quarter was up 6.2% compared to the same quarter last year. During the same period last year, the firm posted $2.35 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, sell-side analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

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 paid a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date of this dividend is Friday, June 12th. Automatic Data Processing's payout ratio is 65.38%.

Automatic Data Processing declared that its Board of Directors has approved a share buyback program on Wednesday, January 14th that authorizes the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to purchase up to 5.8% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board of directors believes its shares are undervalued.

Key Stories Impacting Automatic Data Processing

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

• Positive Sentiment: ADP declared a quarterly dividend of $1.70 per share (ex‑dividend June 12, payable July 1), implying a ~3.5% yield — a cash-return anchor that can support investor demand amid price weakness.
• Neutral Sentiment: Short‑interest data published for April appears non‑informative (reported as 0 shares with an NaN change and a 0.0 days‑to‑cover), so it provides no clear signal about bearish positioning right now.
• Neutral Sentiment: General market/company pages and quote services (CNN, Yahoo Finance) are updating ADP coverage and price data but contain no single new catalyst beyond routine reporting. Automatic Data Processing, Inc. - CNN Markets
• Neutral Sentiment: Company quote and news aggregation on Yahoo Finance provides updated metrics and headlines for investors monitoring intraday moves. Automatic Data Processing, Inc. - Yahoo Finance
• Negative Sentiment: MarketWatch reports ADP has fallen to a new 52‑week low — a technical sign that heightens downside risk and may prompt momentum selling and cautious positioning by momentum/quant funds. Automatic Data Processing Inc. stock falls to new 52-week low
• Negative Sentiment: BMO Capital trimmed ADP’s price target to $234, citing both cyclical and structural pressures on ADP’s business — an analyst action that can weaken sentiment and reduce comfort for long positions, particularly given ADP’s elevated valuation relative to near‑term growth risks. BMO Capital trims ADP target to $234

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the company. JPMorgan Chase & Co. dropped their price target on Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating for the company in a research report on Thursday, January 29th. Cantor Fitzgerald assumed coverage on Automatic Data Processing in a research report on Tuesday, January 27th. They set an "overweight" rating and a $306.00 price target for the company. Jefferies Financial Group reiterated an "underperform" rating and set a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Weiss Ratings reissued a "hold (c+)" rating on shares of Automatic Data Processing in a report on Monday, December 29th. Finally, Wells Fargo & Company decreased their price objective on Automatic Data Processing from $262.00 to $214.00 and set an "underweight" rating on the stock in a report on Friday, March 27th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $284.77.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 543 shares of Automatic Data Processing stock in a transaction that occurred on Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total value of $142,423.47. Following the transaction, the vice president directly owned 9,998 shares of the company's stock, valued at $2,622,375.42. The trade was a 5.15% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP David Foskett sold 266 shares of Automatic Data Processing stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total value of $63,042.00. Following the completion of the transaction, the vice president directly owned 10,954 shares in the company, valued at $2,596,098. This trade represents a 2.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 2,352 shares of company stock valued at $552,834 in the last ninety days. Company insiders own 0.20% of the company's stock.

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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