Insider Selling: Automatic Data Processing (NASDAQ:ADP) VP Sells 543 Shares of Stock

Key Points

• ADP VP Christopher D'ambrosio sold 543 shares on March 16 at an average price of $208.45 for $113,188.35, reducing his holdings by 5.74% to 8,912 shares (he also sold 543 shares in January at ~$262.29).
• Corporate capital return actions: ADP declared a $1.70 quarterly dividend (3.2% yield; ex-dividend March 13) and its board authorized a $6.0 billion share buyback program (~5.8% of shares).
• Recent results and outlook: ADP beat quarterly estimates (EPS $2.62 vs. $2.57; revenue $5.36B vs. $5.34B), set FY2026 EPS guidance of 10.091–11.011, while analysts have trimmed targets and maintain a consensus "Hold" rating with a $290 average price target.

Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) VP Christopher D'ambrosio sold 543 shares of the stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $208.45, for a total transaction of $113,188.35. Following the completion of the transaction, the vice president owned 8,912 shares of the company's stock, valued at $1,857,706.40. This trade represents a 5.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink.

Christopher D'ambrosio also recently made the following trade(s):

• On Tuesday, January 13th, Christopher D'ambrosio sold 543 shares of Automatic Data Processing stock. The stock was sold at an average price of $262.29, for a total value of $142,423.47.

Automatic Data Processing Price Performance

NASDAQ ADP traded up $0.62 on Tuesday, reaching $209.73. 2,635,009 shares of the stock traded hands, compared to its average volume of 3,327,752. Automatic Data Processing, Inc. has a 12 month low of $203.26 and a 12 month high of $329.93. The company has a market cap of $84.45 billion, a price-to-earnings ratio of 20.17 and a beta of 0.86. The firm's fifty day simple moving average is $233.62 and its 200 day simple moving average is $258.96. 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 announced its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, beating the consensus estimate of $2.57 by $0.05. The business had revenue of $5.36 billion during 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 in the prior year, the firm posted $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, research analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be given a dividend of $1.70 per share. The ex-dividend date is Friday, March 13th. This represents a $6.80 annualized dividend and a dividend yield of 3.2%. Automatic Data Processing's dividend payout ratio (DPR) is 65.38%.

Automatic Data Processing announced that its Board of Directors 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 stock through open market purchases. Stock buyback programs are usually a sign that the company's board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on ADP. Stifel Nicolaus cut their price objective on Automatic Data Processing from $280.00 to $270.00 and set a "hold" rating for the company in a research report on Monday, February 9th. Citigroup cut their target price on Automatic Data Processing from $303.00 to $265.00 and set a "neutral" rating on the stock in a research report on Thursday, January 29th. Morgan Stanley reduced their target price on Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a report on Thursday, January 29th. Wells Fargo & Company decreased their price target 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, Jefferies Financial Group reissued an "underperform" rating and issued a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Two investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $290.00.

Institutional Investors Weigh In On Automatic Data Processing

Hedge funds have recently bought and sold shares of the business. Laurel Wealth Advisors LLC increased its holdings in shares of Automatic Data Processing by 30,110.7% in the 2nd quarter. Laurel Wealth Advisors LLC now owns 4,668,758 shares of the business services provider's stock valued at $1,439,845,000 after purchasing an additional 4,653,304 shares during the period. Northwestern Mutual Wealth Management Co. grew its position in Automatic Data Processing by 6,493.0% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider's stock valued at $892,120,000 after purchasing an additional 3,415,576 shares in the last quarter. Cardano Risk Management B.V. increased its stake in Automatic Data Processing by 950.1% in the 4th quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider's stock valued at $916,557,000 after buying an additional 3,223,855 shares during the period. Norges Bank acquired a new position in Automatic Data Processing in the 4th quarter valued at approximately $721,738,000. Finally, Wellington Management Group LLP lifted its position in Automatic Data Processing by 47.8% in 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 buying an additional 2,208,927 shares in the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

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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