AIA Group Ltd Sells 35,233 Shares of Automatic Data Processing, Inc. $ADP

AIA Group Ltd trimmed its position in Automatic Data Processing, Inc. (NASDAQ:ADP) by 41.7% during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 49,257 shares of the business services provider’s stock after selling 35,233 shares during the quarter. AIA Group Ltd’s holdings in Automatic Data Processing were worth $14,457,000 at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in the company. PGIM Custom Harvest LLC boosted its position 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 acquiring an additional 34 shares during the period. Heritage Wealth Management Inc. raised its stake in Automatic Data Processing by 1.1% in the 2nd quarter. Heritage Wealth Management Inc. now owns 3,340 shares of the business services provider’s stock worth $1,030,000 after purchasing an additional 35 shares in the last quarter. Fairvoy Private Wealth LLC boosted its holdings in Automatic Data Processing by 4.2% in the 3rd quarter. Fairvoy Private Wealth LLC now owns 863 shares of the business services provider’s stock valued at $253,000 after purchasing an additional 35 shares during the period. Wealthspire Advisors LLC boosted its holdings in Automatic Data Processing by 0.4% in the 2nd quarter. Wealthspire Advisors LLC now owns 9,335 shares of the business services provider’s stock valued at $2,879,000 after purchasing an additional 36 shares during the period. Finally, Central Pacific Bank Trust Division grew its position in shares of Automatic Data Processing by 4.3% during the 3rd quarter. Central Pacific Bank Trust Division now owns 889 shares of the business services provider’s stock worth $261,000 after purchasing an additional 37 shares in the last quarter. Institutional investors own 80.03% of the company’s stock.

Insider Transactions at Automatic Data Processing

In other news, VP David Kwon sold 806 shares of Automatic Data Processing stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $264.80, for a total transaction of $213,428.80. Following the sale, the vice president directly owned 11,187 shares of the company’s stock, valued at approximately $2,962,317.60. This trade represents a 6.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP Brian L. Michaud sold 1,000 shares of the business’s stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $234.18, for a total value of $234,180.00. Following the sale, the vice president owned 15,310 shares in the company, valued at approximately $3,585,295.80. This trade represents a 6.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 4,058 shares of company stock worth $1,000,263. Insiders own 0.20% of the company’s stock.

Automatic Data Processing Stock Down 0.7%

Shares of NASDAQ ADP opened at $208.28 on Thursday. The company has a market cap of $83.86 billion, a price-to-earnings ratio of 20.03 and a beta of 0.86. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. Automatic Data Processing, Inc. has a 12 month low of $203.26 and a 12 month high of $329.93. The stock has a 50-day moving average price of $231.53 and a two-hundred day moving average price of $257.95.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) 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 business had revenue of $5.36 billion during the quarter, compared to analysts’ expectations of $5.34 billion. During the same period in the prior year, the company earned $2.35 EPS. The firm’s quarterly revenue was up 6.2% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, analysts forecast that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

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

Automatic Data Processing Dividend Announcement

The company also recently declared 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 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s dividend payout ratio is presently 65.38%.

Analysts Set New Price Targets

Several brokerages have recently commented on ADP. JPMorgan Chase & Co. lowered their target price on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a report on Thursday, January 29th. Stifel Nicolaus reduced 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, February 9th. Wells Fargo & Company lowered their price objective on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a research note on Thursday, January 29th. Citigroup dropped their price objective on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a report on Thursday, January 29th. Finally, Morgan Stanley cut their target price on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research report on Thursday, January 29th. Two equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Automatic Data Processing currently has a consensus rating of “Hold” and an average target price 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.