Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) VP David Kwon sold 2,414 shares of the business's stock in a transaction that occurred on Thursday, July 30th. The shares were sold at an average price of $265.62, for a total value of $641,206.68. Following the transaction, the vice president owned 9,660 shares of the company's stock, valued at $2,565,889.20. This represents a 19.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Automatic Data Processing Price Performance
Shares of ADP opened at $266.46 on Friday. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $315.26. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.04. The stock has a fifty day moving average price of $235.88 and a 200 day moving average price of $224.60. The company has a market cap of $106.51 billion, a P/E ratio of 24.36 and a beta of 0.83.
Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The company had revenue of $5.47 billion for the quarter, compared to analysts' expectations of $5.44 billion. During the same period last year, the business posted $2.26 earnings per share. The firm's quarterly revenue was up 6.8% compared to the same quarter last year. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, research analysts forecast that Automatic Data Processing, Inc. will post 12.24 earnings per share for the current year.
Analyst Ratings Changes
Several analysts recently weighed in on the stock. UBS Group lifted their price objective on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a research report on Wednesday, July 22nd. Jefferies Financial Group decreased their target price on shares of Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday, April 30th. Citigroup raised their price target on shares of Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a research note on Thursday. BMO Capital Markets lifted their price target on Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a report on Wednesday. Finally, Wells Fargo & Company boosted their price objective on Automatic Data Processing from $248.00 to $283.00 and gave the stock an "equal weight" rating in a research report on Thursday. Three equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $272.43.
View Our Latest Research Report on ADP
Institutional Investors Weigh In On Automatic Data Processing
Hedge funds and other institutional investors have recently modified their holdings of the stock. Northcape Wealth Management LLC grew its position in Automatic Data Processing by 0.6% in the 4th quarter. Northcape Wealth Management LLC now owns 6,577 shares of the business services provider's stock valued at $1,692,000 after buying an additional 39 shares in the last quarter. Rathbones Group PLC increased its stake in Automatic Data Processing by 1.1% during the 4th quarter. Rathbones Group PLC now owns 4,027 shares of the business services provider's stock valued at $1,036,000 after buying an additional 42 shares during the period. Zullo Investment Group Inc. raised its position in shares of Automatic Data Processing by 2.3% during the 4th quarter. Zullo Investment Group Inc. now owns 1,885 shares of the business services provider's stock worth $485,000 after buying an additional 42 shares in the last quarter. Trilogy Capital Inc. raised its position in shares of Automatic Data Processing by 5.3% during the 4th quarter. Trilogy Capital Inc. now owns 850 shares of the business services provider's stock worth $219,000 after buying an additional 43 shares in the last quarter. Finally, Blossom Wealth Management lifted its stake in shares of Automatic Data Processing by 3.1% in the 4th quarter. Blossom Wealth Management now owns 1,470 shares of the business services provider's stock worth $378,000 after acquiring an additional 44 shares during the period. 80.03% of the stock is currently owned by institutional investors.
Automatic Data Processing News Summary
Here are the key news stories impacting Automatic Data Processing this week:
- Positive Sentiment: Quarterly results exceeded expectations. ADP reported adjusted earnings of $2.64 per share versus the $2.59 consensus estimate, while revenue of $5.47 billion topped estimates of $5.44 billion and increased 6.8% year over year. Management’s fiscal 2027 EPS guidance of $12.12–$12.34 also supports the bullish outlook. ADP’s Q2 CY2026 sales beat estimates
- Positive Sentiment: Analysts raised price targets following the earnings report. Guggenheim increased its target to $300 and upgraded ADP to “buy.” BMO Capital Markets raised its target to $305, while Citigroup, Morgan Stanley, Stifel and Wells Fargo lifted targets to $287, $286, $285 and $283, respectively. These revisions indicate improved confidence in ADP’s earnings outlook. BMO Capital Markets increases ADP price target
- Positive Sentiment: A new buy recommendation adds further support. Commentary following the earnings release described ADP’s valuation as reasonable after its strong long-term performance and maintained a constructive view of the stock. Automatic Data Processing new buy recommendation
- Neutral Sentiment: Most analysts remain cautious despite higher targets. Citigroup, Morgan Stanley, Stifel and Wells Fargo maintained neutral, equal-weight or hold ratings, suggesting that much of the earnings improvement may already be reflected in ADP’s valuation.
- Negative Sentiment: An executive sold shares. Vice President David Kwon sold 2,414 shares for approximately $641,207, reducing his ownership by about 20%. The transaction was conducted under a pre-arranged Rule 10b5-1 plan, which reduces its significance as a discretionary bearish signal. SEC insider transaction filing
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.
Read More
This instant news alert was generated by narrative science technology and financial data from InsiderTrades.com in order to provide readers with the fastest and most accurate reporting. Please send any questions or comments about this story to [email protected].
