Insider Selling: Automatic Data Processing (NASDAQ:ADP) VP Sells 8,728 Shares of Stock

Key Points

• Automatic Data Processing's VP, Michael Bonarti, sold 8,728 shares of stock at an average price of $298.43, totaling approximately $2.6 million, reducing his stake in the company by 9.78%.
• The company recently announced a quarterly dividend of $1.54 to be paid on October 1st, resulting in an annualized yield of 2.1%.
• Automatic Data Processing reported $2.26 EPS in its last earnings results, exceeding analyst expectations, and projects EPS for FY 2026 to be in the range of $10.811-11.011.

Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) VP Michael Bonarti sold 8,728 shares of the company's stock in a transaction dated Tuesday, September 9th. The shares were sold at an average price of $298.43, for a total transaction of $2,604,697.04. Following the completion of the sale, the vice president directly owned 80,531 shares in the company, valued at approximately $24,032,866.33. The trade was a 9.78% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website.

Automatic Data Processing Price Performance

NASDAQ ADP traded up $5.64 on Thursday, reaching $298.03. The company's stock had a trading volume of 1,943,923 shares, compared to its average volume of 1,720,681. The firm has a market cap of $120.71 billion, a PE ratio of 29.86, a price-to-earnings-growth ratio of 2.72 and a beta of 0.82. The business has a 50-day moving average price of $303.53 and a 200 day moving average price of $304.90. Automatic Data Processing, Inc. has a 52 week low of $272.18 and a 52 week high of $329.93. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, beating analysts' consensus estimates of $2.23 by $0.03. The business had revenue of $5.13 billion for the quarter, compared to analysts' expectations of $5.05 billion. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The firm's revenue for the quarter was up 6.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.09 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Sell-side analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 12th will be paid a $1.54 dividend. The ex-dividend date of this dividend is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a yield of 2.1%. Automatic Data Processing's payout ratio is presently 61.72%.

Institutional Trading of Automatic Data Processing

Hedge funds have recently modified their holdings of the stock. Activest Wealth Management grew its stake in shares of Automatic Data Processing by 2,600.0% during the first quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock valued at $25,000 after purchasing an additional 78 shares during the last quarter. Mid American Wealth Advisory Group Inc. bought a new stake in shares of Automatic Data Processing during the second quarter valued at approximately $26,000. Harbor Asset Planning Inc. bought a new stake in shares of Automatic Data Processing during the second quarter valued at approximately $26,000. Howard Hughes Medical Institute bought a new stake in shares of Automatic Data Processing during the second quarter valued at approximately $27,000. Finally, Solstein Capital LLC bought a new stake in shares of Automatic Data Processing during the second quarter valued at approximately $28,000. 80.03% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on ADP shares. Dbs Bank raised shares of Automatic Data Processing to a "hold" rating in a research note on Thursday, August 21st. UBS Group decreased their price objective on shares of Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating on the stock in a research note on Friday, June 13th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $315.00 price objective on shares of Automatic Data Processing in a research note on Thursday, June 5th. TD Securities upped their price objective on shares of Automatic Data Processing from $298.00 to $321.00 and gave the stock a "hold" rating in a research note on Wednesday, May 21st. Finally, Mizuho upped their price objective on shares of Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research note on Friday, June 13th. Two analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $317.00.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.