Rep. Dan Newhouse Buys Automatic Data Processing, Inc. (NASDAQ:ADP) Shares

Key Points

• Representative Dan Newhouse purchased shares of Automatic Data Processing, Inc. (NASDAQ:ADP), investing between $1,001 and $15,000 on August 18th, which was disclosed in a filing on September 17th.
• Automatic Data Processing reported a net margin of 19.84% and revenue growth of 6.3% year-over-year, with earnings per share of $2.26 for the last quarter, exceeding analysts' expectations.
• The company recently declared a quarterly dividend of $1.54 per share, with an annualized dividend yield of 2.1%, set to be paid on October 1st.

Representative Dan Newhouse (R-Washington) recently bought shares of Automatic Data Processing, Inc. NASDAQ: ADP. In a filing disclosed on September 17th, the Representative disclosed that they had bought between $1,001 and $15,000 in Automatic Data Processing stock on August 18th. The trade occurred in the Representative's "EDWARD JONES IRA" account.

Representative Dan Newhouse also recently made the following trade(s):

• Sold $1,001 - $15,000 in shares of RTX NYSE: RTX on 8/18/2025.
• Purchased $1,001 - $15,000 in shares of General Mills NYSE: GIS on 8/18/2025.
• Purchased $1,001 - $15,000 in shares of Advanced Micro Devices NASDAQ: AMD on 8/18/2025.
• Purchased $1,001 - $15,000 in shares of Ross Stores NASDAQ: ROST on 8/18/2025.
• Purchased $1,001 - $15,000 in shares of United Parcel Service NYSE: UPS on 8/18/2025.
• Purchased $1,001 - $15,000 in shares of Prologis NYSE: PLD on 8/18/2025.
• Purchased $1,001 - $15,000 in shares of Brown & Brown NYSE: BRO on 8/18/2025.
• Purchased $1,001 - $15,000 in shares of Exxon Mobil NYSE: XOM on 8/18/2025.
• Purchased $1,001 - $15,000 in shares of AMETEK NYSE: AME on 8/18/2025.
• Purchased $1,001 - $15,000 in shares of S&P Global NYSE: SPGI on 8/18/2025.

Automatic Data Processing Stock Performance

Shares of NASDAQ ADP opened at $292.66 on Tuesday. The company has a market cap of $118.55 billion, a PE ratio of 29.32, a price-to-earnings-growth ratio of 2.67 and a beta of 0.82. Automatic Data Processing, Inc. has a 12 month low of $272.18 and a 12 month high of $329.93. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.05 and a quick ratio of 1.05. The company has a 50-day simple moving average of $300.20 and a 200-day simple moving average of $303.60.

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

Automatic Data Processing Announces Dividend

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

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the stock. Morgan Stanley boosted their target price on shares of Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a report on Thursday, July 31st. BMO Capital Markets upgraded shares of Automatic Data Processing to a "hold" rating and set a $340.00 target price for the company in a report on Thursday, July 10th. UBS Group lowered their target price on shares of Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating for the company in a report on Wednesday, September 17th. Mizuho boosted their target price on shares of Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a report on Friday, June 13th. Finally, Stifel Nicolaus boosted their target price on shares of Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a report on Thursday, July 31st. Two analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $316.70.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Laurel Wealth Advisors LLC raised its holdings in Automatic Data Processing by 30,110.7% in the second 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 acquiring an additional 4,653,304 shares in the last quarter. GAMMA Investing LLC raised its holdings in Automatic Data Processing by 34,655.1% in the first quarter. GAMMA Investing LLC now owns 2,901,007 shares of the business services provider's stock valued at $886,345,000 after acquiring an additional 2,892,660 shares in the last quarter. Norges Bank acquired a new stake in Automatic Data Processing in the second quarter valued at $696,841,000. Nuveen LLC acquired a new stake in Automatic Data Processing in the first quarter valued at $661,771,000. Finally, Mackenzie Financial Corp raised its holdings in Automatic Data Processing by 128.1% in the first quarter. Mackenzie Financial Corp now owns 1,585,704 shares of the business services provider's stock valued at $484,480,000 after acquiring an additional 890,440 shares in the last quarter. 80.03% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Automatic Data Processing

In related news, VP Joseph Desilva sold 4,614 shares of the company's stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total value of $1,368,373.98. Following the sale, the vice president directly owned 17,536 shares of the company's stock, valued at $5,200,651.52. This represents a 20.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Don Mcguire sold 13,599 shares of the company's stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total transaction of $4,033,055.43. Following the completion of the sale, the vice president directly owned 17,684 shares in the company, valued at $5,244,543.88. This represents a 43.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 52,516 shares of company stock valued at $15,632,410 over the last ninety days. 0.20% of the stock is currently owned by corporate insiders.

About Representative Newhouse

Dan Newhouse (Republican Party) is a member of the U.S. House, representing Washington's 4th Congressional District. He assumed office on January 3, 2015. His current term ends on January 3, 2027. Newhouse (Republican Party) ran for re-election to the U.S. House to represent Washington's 4th Congressional District. He won in the general election on November 5, 2024. Click here to see Newhouse's key votes in Congress. Newhouse served as a member of the Washington House of Representatives representing District 15-Position 2 from 2003 through 2009 and as Washington Director of Agriculture from 2009 to 2013. Newhouse was first elected to the state House in 2002 and served until he was named state Director of Agriculture in 2009. He was first appointed by Governor Christine Gregoire on February 18, 2009.

About Automatic Data Processing

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.

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