Automatic Data Processing (NASDAQ:ADP) VP Brian Michaud Sells 1,000 Shares

Automatic Data Processing, Inc. (NASDAQ:ADP) VP Brian Michaud sold 1,000 shares of the business’s stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction of $234,180.00. Following the sale, the vice president directly owned 15,310 shares in the company, valued at approximately $3,585,295.80. This represents a 6.13% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink.

Automatic Data Processing Trading Down 2.0%

NASDAQ:ADP opened at $226.63 on Tuesday. Automatic Data Processing, Inc. has a 12 month low of $224.93 and a 12 month high of $329.93. The firm has a fifty day simple moving average of $256.02 and a 200-day simple moving average of $274.75. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. The company has a market capitalization of $91.25 billion, a P/E ratio of 21.79 and a beta of 0.85.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.57 by $0.05. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The firm had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. During the same period in the prior year, the firm earned $2.35 EPS. The firm’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, equities research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing announced that its board has approved a share buyback program on Wednesday, January 14th that permits the company to buyback $6.00 billion in 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 usually a sign that the company’s leadership believes its stock is undervalued.

Automatic Data Processing Dividend Announcement

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Imprint Wealth LLC acquired a new position in Automatic Data Processing in the 3rd quarter worth about $25,000. Harbor Asset Planning Inc. acquired a new stake in Automatic Data Processing in the second quarter valued at approximately $26,000. Mid American Wealth Advisory Group Inc. purchased a new stake in shares of Automatic Data Processing in the second quarter valued at approximately $26,000. Howard Hughes Medical Institute acquired a new position in shares of Automatic Data Processing during the 2nd quarter worth approximately $27,000. Finally, Solstein Capital LLC purchased a new position in shares of Automatic Data Processing during the 2nd quarter valued at approximately $28,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on ADP shares. Stifel Nicolaus cut their price target on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a report on Monday. Morgan Stanley cut their price objective on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research note on Thursday, January 29th. Jefferies Financial Group reissued an “underperform” rating and set a $230.00 target price (down previously from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Cantor Fitzgerald assumed coverage on shares of Automatic Data Processing in a report on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 price target on the stock. Finally, Citigroup cut their price target 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. Two investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $290.00.

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.