Key Points
- David Kwon, a VP at Automatic Data Processing, sold 900 shares on Jan. 6 at an average price of $260, reducing his position by 6.98% to 11,993 shares valued at about $3.12M.
- ADP beat expectations with quarterly EPS of $2.49 (vs. $2.44 est.) and revenue of $5.18B (up 7.1% YoY), and set FY‑2026 guidance of $10.811–11.011 EPS versus analyst expectations of about $9.93.
- Dividend increased to $1.70 quarterly (annualized $6.80), up from $1.54, implying a yield of roughly 2.6% and a payout ratio near 67%.
Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) VP David Kwon sold 900 shares of the company's stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $260.00, for a total value of $234,000.00. Following the completion of the sale, the vice president owned 11,993 shares in the company, valued at $3,118,180. The trade was a 6.98% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink.
Automatic Data Processing Price Performance
Shares of NASDAQ ADP opened at $265.67 on Friday. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.05 and a quick ratio of 1.05. The stock has a market capitalization of $107.45 billion, a price-to-earnings ratio of 26.23 and a beta of 0.86. The firm's 50 day simple moving average is $257.48 and its 200-day simple moving average is $283.43. Automatic Data Processing, Inc. has a 12 month low of $247.18 and a 12 month high of $329.93.
Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings results on Wednesday, October 29th. The business services provider reported $2.49 EPS for the quarter, beating the consensus estimate of $2.44 by $0.05. Automatic Data Processing had a net margin of 19.79% and a return on equity of 70.63%. The company had revenue of $5.18 billion for the quarter, compared to analyst estimates of $5.14 billion. During the same quarter last year, the business earned $2.33 earnings per share. The firm's revenue was up 7.1% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.
Automatic Data Processing Increases Dividend
The firm also recently declared a quarterly dividend, which was paid on Thursday, January 1st. Investors of record on Friday, December 12th were issued a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date of this dividend was Friday, December 12th. This is a positive change from Automatic Data Processing's previous quarterly dividend of $1.54. Automatic Data Processing's payout ratio is currently 67.13%.
Analysts Set New Price Targets
Several research analysts have recently weighed in on ADP shares. Wells Fargo & Company reduced their target price on Automatic Data Processing from $288.00 to $272.00 and set an "underweight" rating for the company in a research note on Thursday, October 30th. UBS Group cut their price target on shares of Automatic Data Processing from $315.00 to $290.00 and set a "neutral" rating for the company in a report on Wednesday, September 17th. Weiss Ratings restated a "hold (c+)" rating on shares of Automatic Data Processing in a research report on Monday, December 29th. JPMorgan Chase & Co. lowered their price objective on Automatic Data Processing from $340.00 to $295.00 and set an "underweight" rating on the stock in a report on Thursday, October 30th. Finally, 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. Two equities 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 stock. According to MarketBeat.com, Automatic Data Processing presently has an average rating of "Hold" and a consensus target price of $306.42.
Get Our Latest Stock Analysis on Automatic Data Processing
Institutional Trading of Automatic Data Processing
Several institutional investors have recently added to or reduced their stakes in the stock. Mid American Wealth Advisory Group Inc. acquired a new stake in shares of Automatic Data Processing in the second quarter valued at $26,000. Harbor Asset Planning Inc. purchased a new position in Automatic Data Processing in the second quarter worth approximately $26,000. Imprint Wealth LLC acquired a new stake in shares of Automatic Data Processing in the 3rd quarter valued at $25,000. Howard Hughes Medical Institute purchased a new stake in Automatic Data Processing during the 2nd quarter worth about $27,000. Finally, Solstein Capital LLC purchased a new stake in Automatic Data Processing during the second quarter worth approximately $28,000. Institutional investors and hedge funds own 80.03% of the company's stock.
Automatic Data Processing Company Profile
(
Get Free Report)
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.
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