Automatic Data Processing (NASDAQ:ADP) Reaches New 12-Month Low on Insider Selling

Automatic Data Processing, Inc. (NASDAQ:ADP)’s share price reached a new 52-week low during trading on Tuesday after an insider sold shares in the company. The stock traded as low as $224.93 and last traded at $226.63, with a volume of 3376471 shares traded. The stock had previously closed at $231.36.

Specifically, VP David Foskett sold 266 shares of the company’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 value of $63,042.00. Following the sale, the vice president directly owned 10,954 shares in the company, valued at approximately $2,596,098. This represents a 2.37% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, VP Brian L. Michaud sold 1,000 shares of the stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $234.18, for a total value of $234,180.00. Following the completion of the transaction, the vice president directly owned 15,310 shares of the company’s stock, valued at approximately $3,585,295.80. The trade was a 6.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on ADP shares. Stifel Nicolaus lowered their price target on Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a research report on Monday. Cantor Fitzgerald began coverage on shares of Automatic Data Processing in a research note on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 target price on the stock. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Morgan Stanley cut their price target on shares of 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. Finally, Wells Fargo & Company reduced their price target on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a research report on Thursday, January 29th. 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. According to data from MarketBeat.com, Automatic Data Processing currently has a consensus rating of “Hold” and a consensus price target of $290.00.

Automatic Data Processing Trading Down 2.0%

The company’s 50-day moving average is $256.02 and its 200-day moving average is $274.75. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. The firm has a market cap of $91.25 billion, a price-to-earnings ratio of 21.79 and a beta of 0.85.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, topping analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The company had revenue of $5.36 billion during the quarter, compared to the consensus estimate of $5.34 billion. During the same period in the previous year, the firm posted $2.35 earnings per share. The company’s revenue was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, research analysts predict that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be issued a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, March 13th. This represents a $6.80 annualized dividend and a yield of 3.0%. Automatic Data Processing’s dividend payout ratio is currently 65.38%.

Automatic Data Processing declared that its board has initiated a stock repurchase program on Wednesday, January 14th that permits the company to buyback $6.00 billion in outstanding shares. This buyback authorization permits the business services provider to buy up to 5.8% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s board believes its shares are undervalued.

Institutional Investors Weigh In On Automatic Data Processing

Hedge funds and other institutional investors have recently made changes to their positions in the company. Mid American Wealth Advisory Group Inc. bought a new position in Automatic Data Processing in the second quarter valued at about $26,000. Harbor Asset Planning Inc. acquired a new position in Automatic Data Processing during the 2nd quarter valued at about $26,000. Imprint Wealth LLC bought a new position in shares of Automatic Data Processing in the 3rd quarter valued at about $25,000. Howard Hughes Medical Institute acquired a new stake in shares of Automatic Data Processing during the 2nd quarter worth approximately $27,000. Finally, Solstein Capital LLC acquired a new stake in shares of Automatic Data Processing during the 2nd quarter worth approximately $28,000. 80.03% of the stock is owned by institutional investors and hedge funds.

About Automatic Data Processing

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.