Key Points
- Insider sale: ADP VP Christopher D'ambrosio sold 543 shares on March 16 at an average price of $208.45 for $113,188, reducing his stake by 5.74% to 8,912 shares (disclosed in an SEC filing).
- Quarterly results and guidance: ADP beat estimates with Q EPS of $2.62 (vs. $2.57 expected) and revenue of $5.36B (+6.2% YoY), and set FY2026 guidance of $10.091–$11.011 EPS.
- Capital returns: The company announced a $1.70 quarterly dividend (annualized $6.80, ~3.2% yield; ex-dividend Mar 13, payable Apr 1) and launched a $6.0 billion share repurchase program (~5.8% of shares).
Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) VP Christopher D'ambrosio sold 543 shares of the company's stock in a transaction on Monday, March 16th. The stock was sold at an average price of $208.45, for a total transaction of $113,188.35. Following the completion of the transaction, the vice president owned 8,912 shares of the company's stock, valued at $1,857,706.40. This trade represents a 5.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website.
Christopher D'ambrosio also recently made the following trade(s):
- On Tuesday, January 13th, Christopher D'ambrosio sold 543 shares of Automatic Data Processing stock. The stock was sold at an average price of $262.29, for a total transaction of $142,423.47.
Automatic Data Processing Trading Up 0.3%
Shares of ADP opened at $209.73 on Wednesday. Automatic Data Processing, Inc. has a 1-year low of $203.26 and a 1-year high of $329.93. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. The firm's 50-day moving average price is $232.59 and its 200-day moving average price is $258.30. The firm has a market capitalization of $84.45 billion, a price-to-earnings ratio of 20.17 and a beta of 0.86.
Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings results 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 company had revenue of $5.36 billion during the quarter, compared to the consensus estimate of $5.34 billion. During the same period in the prior year, the firm earned $2.35 earnings per share. Automatic Data Processing's 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. Sell-side analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.
Automatic Data Processing Announces Dividend
The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be given a $1.70 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $6.80 annualized dividend and a dividend yield of 3.2%. Automatic Data Processing's dividend payout ratio is currently 65.38%.
Automatic Data Processing declared that its Board of Directors has initiated a stock repurchase program on Wednesday, January 14th that permits the company to repurchase $6.00 billion in shares. This repurchase authorization permits the business services provider to buy up to 5.8% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's board believes its shares are undervalued.
Hedge Funds Weigh In On Automatic Data Processing
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Brighton Jones LLC increased its holdings in shares of Automatic Data Processing by 92.1% in the 4th quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider's stock worth $2,935,000 after purchasing an additional 4,808 shares in the last quarter. Bison Wealth LLC lifted its holdings in shares of Automatic Data Processing by 22.8% during the fourth quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider's stock valued at $1,073,000 after purchasing an additional 681 shares in the last quarter. Schnieders Capital Management LLC. lifted its holdings 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 valued at $388,000 after purchasing an additional 225 shares in the last quarter. Foundations Investment Advisors LLC boosted its position in shares of Automatic Data Processing by 12.4% during the second quarter. Foundations Investment Advisors LLC now owns 5,002 shares of the business services provider's stock valued at $1,543,000 after buying an additional 550 shares during the last quarter. Finally, Avantax Advisory Services Inc. boosted its position in shares of Automatic Data Processing by 6.4% during the second quarter. Avantax Advisory Services Inc. now owns 36,681 shares of the business services provider's stock valued at $11,312,000 after buying an additional 2,217 shares during the last quarter. 80.03% of the stock is owned by institutional investors.
Analyst Upgrades and Downgrades
Several equities research analysts recently weighed in on the company. 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. Citigroup decreased 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. Weiss Ratings reissued a "hold (c+)" rating on shares of Automatic Data Processing in a research report on Monday, December 29th. JPMorgan Chase & Co. reduced 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 report on Thursday, January 29th. Finally, Morgan Stanley decreased 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 research note on Thursday, January 29th. Two investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, Automatic Data Processing has an average rating of "Hold" and an average target price of $290.00.
Check Out Our Latest Stock Analysis on Automatic Data Processing
About Automatic Data Processing
(
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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