Automatic Data Processing (NASDAQ:ADP) to Repurchase $6.00 billion in Shares

Automatic Data Processing (NASDAQ:ADP) announced that its board has authorized a stock repurchase plan on Wednesday, January 14th, RTT News reports. The company plans to repurchase $6.00 billion in outstanding shares. This repurchase authorization allows the business services provider to purchase up to 5.8% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s leadership believes its stock is undervalued.

Automatic Data Processing Price Performance

Automatic Data Processing stock opened at $260.20 on Friday. Automatic Data Processing has a 12 month low of $247.18 and a 12 month 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 0.62. The business’s 50 day simple moving average is $257.80 and its 200 day simple moving average is $281.89. The company has a market cap of $105.24 billion, a price-to-earnings ratio of 25.69 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings data on Wednesday, October 29th. The business services provider reported $2.49 EPS for the quarter, topping the consensus estimate of $2.44 by $0.05. Automatic Data Processing had a net margin of 19.79% and a return on equity of 70.63%. The company had revenue of $5.18 billion during the quarter, compared to the consensus estimate of $5.14 billion. During the same period last year, the firm earned $2.33 EPS. Automatic Data Processing’s revenue for the quarter was up 7.1% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Sell-side analysts forecast that Automatic Data Processing will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be issued a $1.70 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.6%. Automatic Data Processing’s dividend payout ratio is presently 67.13%.

Analysts Set New Price Targets

Several research analysts have recently issued reports on ADP shares. 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 report on Tuesday, December 16th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. JPMorgan Chase & Co. reduced their price target on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a research report on Thursday, October 30th. Citigroup assumed coverage on shares of Automatic Data Processing in a research report on Thursday, October 23rd. They set a “neutral” rating and a $303.00 price objective for the company. Finally, Wells Fargo & Company lowered their target price on Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating for the company in a report on Thursday, October 30th. Two equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $306.42.

Key Stories Impacting Automatic Data Processing

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

• Positive Sentiment: Board authorized a $6.0 billion share repurchase (≈5.8% of outstanding shares). Large buyback reduces float, supports EPS, and signals management thinks shares are undervalued — a common catalyst for upward pressure on the stock. ADP AUTHORIZED TO PURCHASE $6 BILLION OF ITS COMMON STOCK
• Positive Sentiment: Board declared the regular quarterly dividend of $1.70/share (payable April 1, 2026; record date March 13). The steady dividend (≈2.6% yield) supports income investor demand and signals continued free-cash-flow confidence. ADP Declares Regular Quarterly Dividend
• Neutral Sentiment: Investor commentary and “bull case” pieces are circulating that outline upside from AI/data products and cost-cutting exposure; these can attract interest but are qualitative and depend on execution. Automatic Data Processing, Inc. (ADP): A Bull Case Theory
• Neutral Sentiment: ADP’s National Employment Report and macro payroll data highlight continued demand for payroll/HR services — supportive for the long-term sales pipeline but not an immediate earnings surprise. ADP National Employment Report Preliminary Estimate
• Negative Sentiment: Insider sale — VP David Kwon sold 806 shares (~$213k) on Jan 12, reducing his stake by ~6.7%. Single executive sales can be viewed negatively by some investors, though amounts are modest relative to institutional ownership. SEC Filing — David Kwon Sale
• Negative Sentiment: Insider sale — VP Christopher D’ambrosio sold 543 shares (~$142k) on Jan 13, a ~5.2% reduction in his position. Like the other sale, it’s small versus ADP’s float but may be noted by short-term traders. SEC Filing — Christopher D’ambrosio Sale

Insider Buying and Selling at Automatic Data Processing

In related news, VP Christopher D’ambrosio sold 543 shares of the stock in a transaction 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 owned 9,998 shares of the company’s stock, valued at $2,622,375.42. This represents a 5.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP David Kwon sold 806 shares of the firm’s stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $264.80, for a total value of $213,428.80. Following the sale, the vice president owned 11,187 shares in the company, valued at $2,962,317.60. The trade was a 6.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 2,249 shares of company stock worth $589,852. Corporate 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.