Key Points
- CEO Maria Black sold 29,810 ADP shares for approximately $8.4 million at an average price of $280.91, reducing her direct ownership by about 27%. The sale was conducted under a pre-arranged Rule 10b5-1 trading plan.
- ADP exceeded quarterly expectations, reporting $2.64 in earnings per share and $5.47 billion in revenue, with revenue up 6.8% year over year. The company also declared a quarterly dividend of $1.70 per share, equivalent to a 2.4% annualized yield.
- Analyst sentiment remains broadly neutral, with an average rating of “Hold” and a consensus price target of $273.50, below the stock’s reported $283.53 opening price.
Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) CEO Maria Black sold 29,810 shares of Automatic Data Processing stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $280.91, for a total value of $8,373,927.10. Following the sale, the chief executive officer directly owned 80,624 shares of the company's stock, valued at approximately $22,648,087.84. The trade was a 26.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Automatic Data Processing Stock Performance
ADP opened at $283.53 on Friday. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05. The business has a fifty day simple moving average of $261.29 and a 200 day simple moving average of $229.88. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $302.68. The company has a market capitalization of $112.64 billion, a PE ratio of 25.92, a price-to-earnings-growth ratio of 2.55 and a beta of 0.82.
Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, topping the consensus estimate 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 firm had revenue of $5.47 billion for the quarter, compared to analysts' expectations of $5.44 billion. During the same quarter last year, the business earned $2.26 EPS. The company'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. Research analysts expect that Automatic Data Processing, Inc. will post 12.26 EPS for the current year.
Automatic Data Processing Dividend Announcement
The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th will be given a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend is Friday, September 11th. Automatic Data Processing's dividend payout ratio (DPR) is currently 62.16%.
Automatic Data Processing News Summary
Here are the key news stories impacting Automatic Data Processing this week:
- Positive Sentiment: ADP’s August National Employment Report showed private-sector employment increased by 38,000 jobs, while base pay rose 3.2% and gross pay increased 4.7%. The report reinforces ADP’s role as a major source of employment and wage data and points to continued payroll growth, despite a moderating labor market. ADP National Employment Report
- Positive Sentiment: ADP continues to attract income-focused investors as a Dividend Aristocrat with more than 25 consecutive years of annual dividend increases. Its recurring payroll and human-resources revenue base may also appeal to investors seeking defensive exposure. Dividend Stocks Article
- Neutral Sentiment: Analysts and valuation commentary remain broadly balanced. ADP has lagged the broader technology sector over the past year, while one analysis described the shares as approximately 1% undervalued based on fresh labor data. The stock trades near the upper end of its 52-week range, which may limit near-term upside without stronger earnings catalysts. ADP Sector Performance Article
- Neutral Sentiment: Recent data showing Canadian workers benefiting from changing jobs highlights continued wage pressure and employment mobility, factors that could support demand for payroll and workforce-management services but also raise employer costs. Canadian Wage Data
- Negative Sentiment: August private payroll growth of 38,000 fell short of the 47,000 forecast and the prior month’s 44,000 increase. The slowdown could signal weaker hiring activity and slower growth in ADP’s payroll-processing volumes, although it may also increase expectations for easier Federal Reserve policy. ADP August Jobs Report
- Negative Sentiment: CEO Maria Black sold 29,810 shares worth approximately $8.4 million, reducing her direct stake by about 27%. The transaction was executed under a pre-arranged Rule 10b5-1 plan, which reduces its significance as a discretionary bearish signal but may still weigh modestly on sentiment. Maria Black Insider Sale
Hedge Funds Weigh In On Automatic Data Processing
Several hedge funds have recently bought and sold shares of the company. Imprint Wealth LLC bought a new stake in shares of Automatic Data Processing during the 3rd quarter worth approximately $25,000. Cornerstone Financial Management LLC bought a new position in Automatic Data Processing in the fourth quarter valued at approximately $26,000. Bard Associates Inc. bought a new position in Automatic Data Processing in the fourth quarter valued at approximately $28,000. Whipplewood Advisors LLC raised its position in Automatic Data Processing by 2,740.0% during the first quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider's stock valued at $29,000 after purchasing an additional 137 shares in the last quarter. Finally, Prosperity Bancshares Inc bought a new stake in Automatic Data Processing during the fourth quarter worth $33,000. 80.03% of the stock is owned by institutional investors.
Analyst Ratings Changes
A number of analysts have issued reports on the stock. Wells Fargo & Company boosted their price objective on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. Cantor Fitzgerald lifted their price target on shares of Automatic Data Processing from $295.00 to $310.00 and gave the company an "overweight" rating in a research report on Monday, August 3rd. BMO Capital Markets boosted their price target on Automatic Data Processing from $248.00 to $305.00 and gave the company a "market perform" rating in a research note on Wednesday, July 29th. Citigroup boosted their price target on Automatic Data Processing from $230.00 to $287.00 and gave the company a "neutral" rating in a research note on Thursday, July 30th. Finally, Weiss Ratings upgraded Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, July 21st. Three investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $273.50.
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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