Alecta Tjanstepension Omsesidigt Takes $68.47 Million Position in Automatic Data Processing, Inc. $ADP

Alecta Tjanstepension Omsesidigt purchased a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP) during the third quarter, according to the company in its most recent Form 13F filing with the SEC. The firm purchased 233,400 shares of the business services provider’s stock, valued at approximately $68,468,000.

A number of other large investors also recently added to or reduced their stakes in ADP. Brighton Jones LLC raised its holdings in shares of Automatic Data Processing by 92.1% during the fourth quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider’s stock valued at $2,935,000 after acquiring an additional 4,808 shares during the last quarter. Bison Wealth LLC boosted 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 worth $1,073,000 after acquiring an additional 681 shares during the last quarter. Schnieders Capital Management LLC. increased its position in shares of Automatic Data Processing by 21.8% during the second quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider’s stock worth $388,000 after purchasing an additional 225 shares in the last quarter. Pinnacle Wealth Planning Services Inc. raised its stake in Automatic Data Processing by 14.2% in the 2nd quarter. Pinnacle Wealth Planning Services Inc. now owns 1,845 shares of the business services provider’s stock valued at $569,000 after purchasing an additional 230 shares during the last quarter. Finally, Empowered Funds LLC raised its stake in Automatic Data Processing by 62.5% in the 2nd quarter. Empowered Funds LLC now owns 30,418 shares of the business services provider’s stock valued at $9,381,000 after purchasing an additional 11,696 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Automatic Data Processing

In related news, VP Christopher D’ambrosio sold 543 shares of the stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total transaction of $142,423.47. Following the transaction, the vice president owned 9,998 shares of the company’s stock, valued at approximately $2,622,375.42. This represents a 5.15% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the firm’s stock in a transaction dated 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 trade represents a 6.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 4,058 shares of company stock worth $1,000,263 in the last 90 days. Insiders own 0.20% of the company’s stock.

Wall Street Analyst Weigh In

Several brokerages have issued reports 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 research note on Thursday, January 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 research report on Thursday, January 29th. Cantor Fitzgerald assumed coverage on shares of Automatic Data Processing in a research note on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 price target on the stock. Jefferies Financial Group restated an “underperform” rating and set a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Finally, Stifel Nicolaus dropped 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 equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $290.00.

Automatic Data Processing Stock Performance

Shares of ADP stock opened at $208.28 on Thursday. 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 firm has a market cap of $83.86 billion, a P/E ratio of 20.03 and a beta of 0.86. The firm’s 50 day moving average price is $231.53 and its 200-day moving average price is $257.95. Automatic Data Processing, Inc. has a one year low of $203.26 and a one year high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last posted its earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, beating the consensus estimate of $2.57 by $0.05. The firm had revenue of $5.36 billion during the quarter, compared to the consensus estimate of $5.34 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The firm’s revenue for the quarter was up 6.2% on a year-over-year basis. During the same quarter last year, the firm earned $2.35 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, equities research analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing announced that its Board of Directors has authorized 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 shares through open market purchases. Shares buyback programs are generally an indication that the company’s leadership believes its shares are undervalued.

Automatic Data Processing Announces Dividend

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 issued a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 3.3%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s payout ratio is currently 65.38%.

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.