Automatic Data Processing (NASDAQ:ADP) VP David Foskett Sells 266 Shares of Stock

Automatic Data Processing, Inc. (NASDAQ:ADP) VP David Foskett sold 266 shares of Automatic Data Processing stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total value of $63,042.00. Following the completion of the transaction, the vice president directly owned 10,954 shares of the company’s stock, valued at $2,596,098. This represents a 2.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link.

Automatic Data Processing Stock Performance

ADP opened at $226.63 on Tuesday. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. Automatic Data Processing, Inc. has a 52-week low of $224.93 and a 52-week high of $329.93. The firm has a market cap of $91.25 billion, a P/E ratio of 21.79 and a beta of 0.85. The business’s fifty day moving average is $256.02 and its 200-day moving average is $274.75.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, topping the consensus estimate of $2.57 by $0.05. The business had revenue of $5.36 billion during the quarter, compared to analysts’ expectations of $5.34 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. Automatic Data Processing’s revenue was up 6.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Sell-side analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing declared that its Board of Directors has initiated a stock buyback plan on Wednesday, January 14th that allows the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization allows the business services provider to buy up to 5.8% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board 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. Investors of record on Friday, March 13th will be paid a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is 65.38%.

Institutional Investors Weigh In On Automatic Data Processing

A number of institutional investors have recently added to or reduced their stakes in the business. Brighton Jones LLC lifted its holdings in Automatic Data Processing by 92.1% during the 4th quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider’s stock worth $2,935,000 after buying an additional 4,808 shares during the period. Bison Wealth LLC increased its stake in shares of Automatic Data Processing by 22.8% in the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider’s stock valued at $1,073,000 after buying an additional 681 shares during the period. Robertson Stephens Wealth Management LLC raised its position in shares of Automatic Data Processing by 7.0% during the second quarter. Robertson Stephens Wealth Management LLC now owns 2,256 shares of the business services provider’s stock worth $699,000 after acquiring an additional 147 shares during the last quarter. Fifth Third Wealth Advisors LLC lifted its stake in shares of Automatic Data Processing by 9.7% in the second quarter. Fifth Third Wealth Advisors LLC now owns 6,712 shares of the business services provider’s stock worth $2,070,000 after acquiring an additional 594 shares during the period. Finally, Apollon Wealth Management LLC lifted its stake in shares of Automatic Data Processing by 3.7% in the second quarter. Apollon Wealth Management LLC now owns 15,009 shares of the business services provider’s stock worth $4,629,000 after acquiring an additional 532 shares during the period. 80.03% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on ADP shares. Morgan Stanley decreased their target price on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research report on Thursday, January 29th. Wells Fargo & Company decreased 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 report on Thursday, January 29th. Jefferies Financial Group reissued an “underperform” rating and issued a $230.00 price objective (down previously from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Cantor Fitzgerald began coverage on shares of Automatic Data Processing in a research report on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 target price on the stock. Finally, Stifel Nicolaus decreased their target price on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a research note on Monday. Two research analysts have rated the stock with a Buy rating, nine have given 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 price target of $290.00.

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.