DNB Asset Management AS Purchases 5,016 Shares of Automatic Data Processing, Inc. $ADP

DNB Asset Management AS raised its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 3.8% in the third quarter, HoldingsChannel reports. The firm owned 137,410 shares of the business services provider’s stock after buying an additional 5,016 shares during the quarter. DNB Asset Management AS’s holdings in Automatic Data Processing were worth $40,330,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also recently made changes to their positions in ADP. Howard Hughes Medical Institute bought a new stake in Automatic Data Processing during the second quarter valued at approximately $27,000. Westside Investment Management Inc. grew its position in shares of Automatic Data Processing by 80.0% during the 2nd quarter. Westside Investment Management Inc. now owns 90 shares of the business services provider’s stock valued at $28,000 after acquiring an additional 40 shares during the period. TruNorth Capital Management LLC purchased a new stake in shares of Automatic Data Processing in the 3rd quarter worth $28,000. Cloud Capital Management LLC bought a new position in Automatic Data Processing in the 3rd quarter worth $29,000. Finally, Y.D. More Investments Ltd bought a new position in Automatic Data Processing in the 3rd quarter worth $32,000. Institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Trading Up 1.9%

Shares of ADP opened at $218.36 on Friday. The firm has a market cap of $87.92 billion, a P/E ratio of 21.00 and a beta of 0.85. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03. Automatic Data Processing, Inc. has a 1 year low of $203.26 and a 1 year high of $329.93. The company has a 50 day simple moving average of $243.68 and a two-hundred day simple moving average of $266.94.

Automatic Data Processing (NASDAQ:ADP) last issued 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. The firm had revenue of $5.36 billion during the quarter, compared to analyst estimates 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 for the quarter was up 6.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, equities analysts expect that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing declared that its Board of Directors has approved a share buyback plan on Wednesday, January 14th that allows the company to repurchase $6.00 billion in shares. This repurchase authorization allows the business services provider to buy up to 5.8% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s management believes its shares are undervalued.

Automatic Data Processing Dividend Announcement

The company also recently announced 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. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s payout ratio is currently 65.38%.

Insider Transactions at Automatic Data Processing

In other news, 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 transaction of $63,042.00. Following the sale, 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Brian L. Michaud sold 1,000 shares of the stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $234.18, for a total value of $234,180.00. Following the transaction, the vice president owned 15,310 shares of the company’s stock, valued at $3,585,295.80. This represents a 6.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 3,515 shares of company stock worth $887,074. 0.20% of the stock is owned by insiders.

Analyst Ratings Changes

Several research firms have issued reports on ADP. Wells Fargo & Company cut their price target on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a report on Thursday, January 29th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Morgan Stanley reduced their target price 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. Jefferies Financial Group reaffirmed 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. Finally, Stifel Nicolaus reduced their price objective on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a research note on Monday, February 9th. 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 MarketBeat.com, Automatic Data Processing has an average rating of “Hold” and a consensus 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.