Wendell David Associates Inc. Sells 4,989 Shares of Automatic Data Processing, Inc. $ADP

Key Points

• Wendell David Associates reduced its stake in Automatic Data Processing (NASDAQ:ADP) by 2.8% in Q4, selling 4,989 shares and retaining 175,140 shares worth about $45.05 million, representing 4.6% of its portfolio and ADP as its 6th largest holding.
• ADP beat Q3 estimates with $3.37 EPS and $5.94 billion revenue (up 7% YoY), raised FY2026 EPS guidance to $11.010–11.110, and announced a $6 billion share buyback alongside a quarterly dividend of $1.70 (3.2% yield).
• Several analysts have trimmed price targets and the consensus rating is a "Hold" with an average target near $265.69, while institutional ownership is about 80% and insiders made small recent stock sales.

Wendell David Associates Inc. reduced its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 2.8% during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 175,140 shares of the business services provider's stock after selling 4,989 shares during the period. Automatic Data Processing comprises about 4.6% of Wendell David Associates Inc.'s investment portfolio, making the stock its 6th biggest position. Wendell David Associates Inc.'s holdings in Automatic Data Processing were worth $45,051,000 at the end of the most recent quarter.

Other institutional investors have also made changes to their positions in the company. Imprint Wealth LLC bought a new stake in Automatic Data Processing during the third quarter worth about $25,000. TruNorth Capital Management LLC bought a new stake in Automatic Data Processing during the third quarter worth about $28,000. Cloud Capital Management LLC bought a new stake in Automatic Data Processing during the third quarter worth about $29,000. Y.D. More Investments Ltd bought a new stake in Automatic Data Processing during the third quarter worth about $32,000. Finally, Board of the Pension Protection Fund bought a new stake in Automatic Data Processing during the fourth quarter worth about $31,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Automatic Data Processing Price Performance

Shares of ADP stock opened at $215.06 on Thursday. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $329.93. The firm's 50 day moving average is $206.75 and its 200-day moving average is $238.83. The firm has a market capitalization of $86.59 billion, a price-to-earnings ratio of 20.68 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 (NASDAQ:ADP - Get Free Report) last announced its earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.30 by $0.07. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The company had revenue of $5.94 billion for the quarter, compared to analyst estimates of $5.85 billion. During the same period in the prior year, the business earned $3.06 earnings per share. Automatic Data Processing's quarterly revenue was up 7.0% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Sell-side analysts forecast that Automatic Data Processing, Inc. will post 10.96 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently announced 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. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date is Friday, June 12th. Automatic Data Processing's dividend payout ratio is presently 65.38%.

Automatic Data Processing announced that its board has authorized a share buyback program on Wednesday, January 14th that allows the company to buyback $6.00 billion in shares. This buyback authorization allows the business services provider to purchase up to 5.8% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board of directors believes its stock is undervalued.

Analysts Set New Price Targets

ADP has been the topic of several research analyst reports. JPMorgan Chase & Co. decreased their price objective on shares of Automatic Data Processing from $295.00 to $275.00 and set an "underweight" rating on the stock in a research note on Thursday, January 29th. Stifel Nicolaus decreased their price objective on shares of 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. Guggenheim initiated coverage on shares of Automatic Data Processing in a research note on Thursday, March 19th. They set a "buy" rating and a $270.00 price objective on the stock. Wells Fargo & Company decreased their price objective on shares of Automatic Data Processing from $262.00 to $214.00 and set an "underweight" rating on the stock in a research note on Friday, March 27th. Finally, BMO Capital Markets decreased their price objective on shares of Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating on the stock in a research note on Tuesday, April 7th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $265.69.

More Automatic Data Processing News

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

• Positive Sentiment: ADP beat Q3 estimates — reported $3.37 EPS vs. consensus ~ $3.30 and revenue of $5.94B (up 7% YoY). Management raised FY‑2026 EPS guidance to $11.010–11.110 and revenue to roughly $21.8–22.0B, signaling stronger execution and recurring revenue strength. ADP Reports Third Quarter Fiscal 2026 Results
• Positive Sentiment: Management emphasized AI adoption on the earnings call as a growth catalyst — noting AI-driven features are accelerating product demand and efficiency, which underpinned the raised guidance. This message supports a structural growth narrative beyond the quarter. ADP Earnings Call: AI Gains, Guidance Raised
• Positive Sentiment: Company slide deck and earnings presentation provide details on revenue mix, client funds income growth, and segment execution that support the beat and outlook. Helpful for investors modeling FY26 cadence. Automatic Data Processing, Inc. 2026 Q3 - Results - Earnings Call Presentation
• Neutral Sentiment: Analyst/coverage writeups (Zacks, Benzinga) summarize the beat and highlight key metrics (7% revenue growth, higher client funds income) for context; useful but largely reiterative of the release. Compared to Estimates, ADP (ADP) Q3 Earnings: A Look at Key Metrics
• Neutral Sentiment: ADP’s National Employment Report and related data releases keep the company visible as a provider of labor market intelligence, supporting product relevance but not directly tied to near‑term stock moves. ADP National Employment Report Preliminary Estimate for April 28, 2026
• Negative Sentiment: Morgan Stanley cut its price target from $311 to $274 and moved to Equal Weight — a signal that some analysts see less near‑term upside despite the beat, which can cap gains. Morgan Stanley Adjusts Price Target on Automatic Data Processing to $274 from $311
• Negative Sentiment: Cantor Fitzgerald lowered its price target (from $306 to $244) even while keeping an Overweight rating, reflecting concerns that macro or multiple‑compression risks could be understated — another potential headwind for share momentum. Cantor Fitzgerald Says Macro Risks May Be Overstated for Automatic Data Processing (ADP)

Insider Transactions at Automatic Data Processing

In related news, VP Brian L. Michaud sold 1,000 shares of the business's stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $234.18, for a total transaction of $234,180.00. Following the completion of the sale, the vice president directly owned 15,310 shares of the company's stock, valued at $3,585,295.80. The trade was a 6.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, VP David Foskett sold 266 shares of the business's 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 sale, the vice president directly owned 10,954 shares of the company's stock, valued at approximately $2,596,098. This trade represents a 2.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 1,809 shares of company stock worth $410,410. Corporate insiders own 0.20% of the company's stock.

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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