CIBC Bancorp USA Inc. Takes Position in Automatic Data Processing, Inc. $ADP

CIBC Bancorp USA Inc. bought a new position in Automatic Data Processing, Inc. (NASDAQ:ADP) during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 75,693 shares of the business services provider’s stock, valued at approximately $22,216,000.

A number of other large investors have also bought and sold shares of ADP. PGIM Custom Harvest LLC increased its holdings in Automatic Data Processing by 4.9% during the 2nd 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. Heritage Wealth Management Inc. boosted its stake in 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 purchasing an additional 35 shares in the last quarter. Fairvoy Private Wealth LLC grew its holdings in shares of Automatic Data Processing by 4.2% during the third quarter. Fairvoy Private Wealth LLC now owns 863 shares of the business services provider’s stock worth $253,000 after purchasing an additional 35 shares during the last quarter. Wealthspire Advisors LLC grew its holdings in shares of Automatic Data Processing by 0.4% during the second quarter. Wealthspire Advisors LLC now owns 9,335 shares of the business services provider’s stock worth $2,879,000 after purchasing an additional 36 shares during the last quarter. Finally, Central Pacific Bank Trust Division increased its stake in shares of Automatic Data Processing by 4.3% in the third quarter. Central Pacific Bank Trust Division now owns 889 shares of the business services provider’s stock valued at $261,000 after buying an additional 37 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Price Performance

ADP opened at $208.28 on Thursday. The company has a fifty day moving average price of $231.53 and a two-hundred day moving average price of $257.95. The firm has a market capitalization of $83.86 billion, a PE ratio of 20.03 and a beta of 0.86. Automatic Data Processing, Inc. has a 52 week low of $203.26 and a 52 week high of $329.93. 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 (NASDAQ:ADP) last posted its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, beating analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The company had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. During the same quarter in the prior year, the business posted $2.35 EPS. The firm’s quarterly revenue was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be paid a $1.70 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $6.80 annualized dividend and a yield of 3.3%. Automatic Data Processing’s dividend payout ratio is presently 65.38%.

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

Analyst Upgrades and Downgrades

ADP has been the subject of a number of research analyst reports. Morgan Stanley cut their price target on 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 reissued an “underperform” rating and set a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. JPMorgan Chase & Co. lowered their price objective on shares of 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. Cantor Fitzgerald initiated coverage on shares of Automatic Data Processing in a research note on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 target price for the company. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Two investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $290.00.

Insider Buying and Selling

In other Automatic Data Processing news, VP Brian L. Michaud sold 1,000 shares of the firm’s stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction of $234,180.00. Following the transaction, 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP David Foskett sold 266 shares of the business’s stock in a transaction dated Thursday, February 5th. The stock was sold at an average price of $237.00, for a total value of $63,042.00. Following the transaction, the vice president owned 10,954 shares of the company’s stock, valued at $2,596,098. The trade was a 2.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 4,058 shares of company stock worth $1,000,263. Corporate insiders own 0.20% of the company’s stock.

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.