Contravisory Investment Management Inc. Lowers Stock Holdings in Automatic Data Processing, Inc. $ADP

Contravisory Investment Management Inc. lessened its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 15.9% during the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 21,100 shares of the business services provider’s stock after selling 4,004 shares during the period. Contravisory Investment Management Inc.’s holdings in Automatic Data Processing were worth $5,428,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the stock. Rialto Wealth Management LLC increased its holdings in shares of Automatic Data Processing by 2,357.1% in the fourth quarter. Rialto Wealth Management LLC now owns 172 shares of the business services provider’s stock valued at $44,000 after purchasing an additional 165 shares during the period. Somerset Trust Co lifted its holdings in shares of Automatic Data Processing by 1.4% during the fourth quarter. Somerset Trust Co now owns 19,575 shares of the business services provider’s stock worth $5,035,000 after purchasing an additional 273 shares during the period. Appleton Partners Inc. MA grew its position in Automatic Data Processing by 2.4% in the 4th quarter. Appleton Partners Inc. MA now owns 8,102 shares of the business services provider’s stock valued at $2,084,000 after buying an additional 193 shares during the last quarter. Murphy Middleton Hinkle & Parker Inc. purchased a new position in Automatic Data Processing in the 4th quarter valued at $1,545,000. Finally, Carderock Capital Management Inc. increased its stake in Automatic Data Processing by 4.9% in the 4th quarter. Carderock Capital Management Inc. now owns 33,507 shares of the business services provider’s stock valued at $8,619,000 after buying an additional 1,565 shares during the period. 80.03% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Automatic Data Processing

In related 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 value of $63,042.00. Following the sale, the vice president owned 10,954 shares in the company, valued at $2,596,098. This represents a 2.37% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the firm’s 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 completion of the transaction, the vice president directly owned 15,310 shares of the company’s stock, valued at $3,585,295.80. The trade was a 6.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 4,058 shares of company stock worth $1,000,263 over the last quarter. Insiders own 0.20% of the company’s stock.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $209.71 on Tuesday. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. Automatic Data Processing, Inc. has a fifty-two week low of $203.26 and a fifty-two week high of $329.93. The stock has a market cap of $84.44 billion, a PE ratio of 20.16 and a beta of 0.86. The firm’s fifty day simple moving average is $228.22 and its 200-day simple moving average is $255.72.

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 the consensus estimate of $2.57 by $0.05. The firm had revenue of $5.36 billion during the quarter, compared to analysts’ expectations of $5.34 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The business’s revenue for the quarter was up 6.2% compared to the same quarter last year. During the same quarter last year, the business earned $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. 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 has initiated a stock repurchase program on Wednesday, January 14th that permits the company to buyback $6.00 billion in shares. This buyback authorization permits the business services provider to reacquire up to 5.8% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s leadership believes its stock is undervalued.

Automatic Data Processing Dividend Announcement

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

Wall Street Analyst Weigh In

Several analysts have recently commented on the stock. Jefferies Financial Group restated an “underperform” rating and issued a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Guggenheim began coverage on shares of Automatic Data Processing in a research note on Thursday, March 19th. They set a “buy” rating and a $270.00 price target on the stock. Morgan Stanley cut their price target 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. JPMorgan Chase & Co. lowered their price objective on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a report on Thursday, January 29th. Finally, Citigroup dropped their target price on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research report on Thursday, January 29th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $288.46.

Automatic Data Processing 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.