Automatic Data Processing, Inc. (NASDAQ:ADP) Short Interest Up 20.7% in January

Automatic Data Processing, Inc. (NASDAQ:ADP) saw a significant growth in short interest in the month of January. As of January 30th, there was short interest totaling 8,901,390 shares, a growth of 20.7% from the January 15th total of 7,377,784 shares. Based on an average daily volume of 2,810,636 shares, the days-to-cover ratio is presently 3.2 days. Currently, 2.2% of the shares of the company are short sold. Currently, 2.2% of the shares of the company are short sold. Based on an average daily volume of 2,810,636 shares, the days-to-cover ratio is presently 3.2 days.

Analyst Ratings Changes

Several research firms have commented on ADP. Stifel Nicolaus lowered 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, February 9th. Morgan Stanley decreased their price objective 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. Cantor Fitzgerald began coverage on shares of Automatic Data Processing in a research note on Tuesday, January 27th. They set an “overweight” rating and a $306.00 price objective on the stock. 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. Finally, JPMorgan Chase & Co. cut their target price on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Two 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’s stock. According to data from MarketBeat, Automatic Data Processing has an average rating of “Hold” and an average target price of $290.00.

Automatic Data Processing Trading Up 1.0%

Shares of NASDAQ:ADP opened at $212.11 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. The stock has a market capitalization of $85.40 billion, a price-to-earnings ratio of 20.40 and a beta of 0.85. Automatic Data Processing has a 1-year low of $208.62 and a 1-year high of $329.93. The company has a 50 day moving average price of $251.62 and a 200 day moving average price of $271.46.

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

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be given a $1.70 dividend. The ex-dividend date is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.2%. Automatic Data Processing’s dividend payout ratio (DPR) is 65.38%.

Automatic Data Processing declared that its Board of Directors has authorized a share buyback program on Wednesday, January 14th that authorizes the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to buy up to 5.8% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In other Automatic Data Processing news, VP David Kwon sold 806 shares of the business’s stock in a transaction on Monday, January 12th. The stock was sold at an average price of $264.80, for a total transaction of $213,428.80. Following the completion of the transaction, the vice president owned 11,187 shares in the company, valued at approximately $2,962,317.60. The trade was a 6.72% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Christopher D’ambrosio sold 543 shares of the firm’s stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total value of $142,423.47. Following the transaction, the vice president directly owned 9,998 shares in the company, valued at $2,622,375.42. This trade represents a 5.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 3,515 shares of company stock worth $887,074. 0.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Automatic Data Processing

Hedge funds have recently bought and sold shares of the company. Jacobsen Capital Management lifted its position in shares of Automatic Data Processing by 3.8% in the 2nd quarter. Jacobsen Capital Management now owns 907 shares of the business services provider’s stock valued at $280,000 after acquiring an additional 33 shares in the last quarter. Signature Wealth Management Group raised its stake in Automatic Data Processing by 2.3% during the 2nd quarter. Signature Wealth Management Group now owns 1,450 shares of the business services provider’s stock valued at $447,000 after purchasing an additional 33 shares during the period. PGIM Custom Harvest LLC lifted its holdings in shares of Automatic Data Processing by 4.9% in the second quarter. PGIM Custom Harvest LLC now owns 722 shares of the business services provider’s stock valued at $223,000 after purchasing an additional 34 shares in the last quarter. Texas Yale Capital Corp. boosted its position in shares of Automatic Data Processing by 0.4% in the second quarter. Texas Yale Capital Corp. now owns 8,333 shares of the business services provider’s stock worth $2,570,000 after buying an additional 35 shares during the period. Finally, Heritage Wealth Management Inc. boosted its position in shares of Automatic Data Processing by 1.1% in the second quarter. Heritage Wealth Management Inc. now owns 3,340 shares of the business services provider’s stock worth $1,030,000 after buying an additional 35 shares during the period. 80.03% of the stock is owned by hedge funds and other institutional investors.

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.