Key Points
- ADP Vice President Joseph Desilva sold 631 shares at an average price of $282.87, generating approximately $178,491. The transaction was conducted under a pre-arranged Rule 10b5-1 plan, and he retained 18,824 shares.
- ADP exceeded quarterly expectations with adjusted earnings of $2.64 per share and revenue of $5.47 billion, while revenue grew 6.8% year over year. The company also declared a quarterly dividend of $1.70 per share, or $6.80 annually, yielding about 2.4%.
- Analysts maintain a consensus “Hold” rating with an average price target of $273.50, below the stock’s reported opening price of $277.62. ADP shares have traded between $188.16 and $302.68 over the past year.
Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) VP Joseph Desilva sold 631 shares of the company's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total value of $178,490.97. Following the completion of the sale, the vice president directly owned 18,824 shares in the company, valued at approximately $5,324,744.88. The trade was a 3.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Automatic Data Processing Price Performance
ADP opened at $277.62 on Friday. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82. The company has a market cap of $110.29 billion, a price-to-earnings ratio of 25.38, a price-to-earnings-growth ratio of 2.57 and a beta of 0.82. The stock has a fifty day simple moving average of $262.37 and a two-hundred day simple moving average of $230.21. Automatic Data Processing, Inc. has a 12-month low of $188.16 and a 12-month high of $302.68.
Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its earnings results on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, beating analysts' consensus estimates of $2.59 by $0.05. The firm had revenue of $5.47 billion for the quarter, compared to analysts' expectations of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The company's quarterly revenue was up 6.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Research analysts predict that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current fiscal year.
Automatic Data Processing Dividend Announcement
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th will be paid a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, September 11th. This represents a $6.80 annualized dividend and a yield of 2.4%. Automatic Data Processing's payout ratio is presently 62.16%.
Key Stories Impacting Automatic Data Processing
Here are the key news stories impacting Automatic Data Processing this week:
- Positive Sentiment: ADP declared a quarterly dividend of $1.70 per share, equivalent to $6.80 annually and a yield of approximately 2.4%. The payment reinforces the company’s appeal to income-focused investors and its long record of annual dividend increases. Dividend announcement article
- Neutral Sentiment: ADP’s August employment report showed private-sector payrolls increased by 38,000, while base pay rose 3.2% and gross pay grew 4.7%. The data highlights ADP’s influence as a labor-market information provider, but also points to a moderating hiring environment. ADP August employment report
- Neutral Sentiment: One valuation analysis described ADP as roughly 1% undervalued based on recent labor-market data, while noting that the stock has underperformed the broader technology sector. The limited valuation discount suggests investors may need stronger earnings growth to drive further upside. ADP valuation analysis
- Negative Sentiment: A Seeking Alpha analysis downgraded ADP, arguing that recent operating and market tailwinds are already reflected in the share price. The view adds valuation pressure as ADP trades at a relatively elevated earnings multiple. ADP downgrade analysis
- Negative Sentiment: CEO Maria Black sold 29,810 shares worth about $8.4 million, reducing her direct ownership by roughly 27%. Vice President Joseph Desilva separately sold 631 shares for approximately $178,000. Both transactions were executed under pre-arranged Rule 10b5-1 plans, making them less significant as discretionary bearish signals, though the sales may still weigh on sentiment. ADP insider sales
- Negative Sentiment: August private payroll growth of 38,000 missed the 47,000 forecast and slowed from 44,000 in July. A weaker hiring backdrop could reduce growth in payroll-processing volumes, although lower employment growth may increase expectations for easier Federal Reserve policy. ADP private payrolls report
Institutional Inflows and Outflows
Several hedge funds and other institutional investors have recently made changes to their positions in ADP. Thrive Wealth Management LLC grew its holdings in shares of Automatic Data Processing by 3.5% during the second quarter. Thrive Wealth Management LLC now owns 1,085 shares of the business services provider's stock valued at $243,000 after buying an additional 37 shares during the last quarter. SBI Securities Co. Ltd. raised its holdings in Automatic Data Processing by 2.4% in the 4th quarter. SBI Securities Co. Ltd. now owns 1,895 shares of the business services provider's stock worth $488,000 after acquiring an additional 45 shares during the last quarter. Cary Street Partners Investment Advisory LLC lifted its position in Automatic Data Processing by 1.7% in the 4th quarter. Cary Street Partners Investment Advisory LLC now owns 2,784 shares of the business services provider's stock valued at $716,000 after acquiring an additional 47 shares in the last quarter. Guardian Partners Inc. lifted its position in Automatic Data Processing by 0.9% in the 1st quarter. Guardian Partners Inc. now owns 5,127 shares of the business services provider's stock valued at $1,044,000 after acquiring an additional 47 shares in the last quarter. Finally, Reston Wealth Management LLC boosted its stake in Automatic Data Processing by 5.8% during the 4th quarter. Reston Wealth Management LLC now owns 892 shares of the business services provider's stock valued at $229,000 after purchasing an additional 49 shares during the last quarter. Institutional investors own 80.03% of the company's stock.
Analyst Ratings Changes
ADP has been the subject of a number of analyst reports. Stifel Nicolaus raised their target price on shares of Automatic Data Processing from $260.00 to $285.00 and gave the company a "hold" rating in a research note on Thursday, July 30th. Wells Fargo & Company boosted their price target on Automatic Data Processing from $248.00 to $283.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 30th. Morgan Stanley upped their price target on Automatic Data Processing from $240.00 to $286.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 30th. Guggenheim raised their price objective on Automatic Data Processing from $270.00 to $300.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. Finally, Weiss Ratings raised Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a research report 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 company currently has a consensus rating of "Hold" and a consensus target price of $273.50.
Get Our Latest Analysis on Automatic Data Processing
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.
Further Reading
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