Automatic Data Processing (NASDAQ:ADP) VP David Kwon Sells 806 Shares

Automatic Data Processing, Inc. (NASDAQ:ADP) VP David Kwon sold 806 shares of the firm’s stock in a transaction on Monday, January 12th. The shares were sold at an average price of $264.80, for a total value of $213,428.80. Following the completion of the transaction, the vice president owned 11,187 shares in the company, valued at $2,962,317.60. The trade was a 6.72% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website.

David Kwon also recently made the following trade(s):

• On Tuesday, January 6th, David Kwon sold 900 shares of Automatic Data Processing stock. The stock was sold at an average price of $260.00, for a total transaction of $234,000.00.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $258.50 on Thursday. The company has a market cap of $104.55 billion, a P/E ratio of 25.52 and a beta of 0.86. Automatic Data Processing, Inc. has a twelve month low of $247.18 and a twelve month high of $329.93. The company’s 50-day moving average price is $257.64 and its 200-day moving average price is $282.05. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.62.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Wednesday, October 29th. The business services provider reported $2.49 earnings per share (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 during the quarter, compared to analysts’ expectations of $5.14 billion. During the same quarter in the prior year, the company earned $2.33 EPS. Automatic Data Processing’s revenue was up 7.1% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. On average, sell-side analysts forecast that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be given a dividend of $1.70 per share. The ex-dividend date is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a yield of 2.6%. Automatic Data Processing’s dividend payout ratio (DPR) is presently 67.13%.

Automatic Data Processing announced that its Board of Directors has initiated a stock buyback plan on Wednesday, January 14th that authorizes the company to repurchase $6.00 billion in shares. This repurchase authorization authorizes the business services provider to repurchase up to 5.8% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s leadership believes its shares are undervalued.

Key Automatic Data Processing News

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Board authorizes $6.0 billion share repurchase (up to ~5.8% of outstanding stock) — buybacks reduce share count and signal management believes shares are undervalued, which typically supports the stock and EPS. ADP AUTHORIZED TO PURCHASE $6 BILLION OF ITS COMMON STOCK
• Positive Sentiment: Board declares regular quarterly dividend of $1.70/share payable April 1, 2026 — steady dividend income and a raised/maintained payout tend to attract income-oriented investors and signal confidence in cash flow. ADP Declares Regular Quarterly Dividend
• Neutral Sentiment: ADP National Employment Report (NER Pulse) shows private employers adding ~11,750 jobs per week (four weeks ending Dec 20, 2025) — reinforces ADP’s core data business and demand for payroll/HR services but is not a direct earnings driver in the near term. ADP National Employment Report Preliminary Estimate December 20, 2025
• Neutral Sentiment: Coverage and analyst target shifts are getting attention — analyst reassessments can move sentiment but the net impact depends on whether targets are raised or lowered; watch for specific rating/target changes. How The Story Behind Automatic Data Processing (ADP) Is Shifting With New Analyst Targets
• Negative Sentiment: Insider sales: VP David Kwon sold 806 shares (~$213k) on Jan 12 (reducing his stake ~6.7%) — single executive sales can be perceived negatively if viewed as lack of conviction, though the position remains sizable. SEC Filing — David Kwon Sale
• Negative Sentiment: Insider sales: VP Christopher D’ambrosio sold 543 shares (~$142k) on Jan 13 (reducing his stake ~5.2%) — another modest, routine sale that investors may note but is small relative to overall float. SEC Filing — Christopher D’ambrosio Sale

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on ADP shares. Jefferies Financial Group reissued an “underperform” rating and issued a $230.00 price objective (down previously from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. JPMorgan Chase & Co. decreased their target price on shares of Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a report on Thursday, October 30th. Wells Fargo & Company cut their price target on shares of Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating for the company in a report on Thursday, October 30th. UBS Group decreased their price objective on Automatic Data Processing from $315.00 to $290.00 and set a “neutral” rating on the stock in a report on Wednesday, September 17th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Two research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, Automatic Data Processing currently has a consensus rating of “Hold” and an average target price of $306.42.

Hedge Funds Weigh In On Automatic Data Processing

A number of hedge funds have recently made changes to their positions in the stock. Mid American Wealth Advisory Group Inc. acquired a new position in Automatic Data Processing during the second quarter worth $26,000. Harbor Asset Planning Inc. purchased a new stake in shares of Automatic Data Processing in the 2nd quarter valued at $26,000. Imprint Wealth LLC acquired a new position in Automatic Data Processing during the 3rd quarter worth about $25,000. Howard Hughes Medical Institute purchased a new position in Automatic Data Processing during the 2nd quarter valued at about $27,000. Finally, Solstein Capital LLC acquired a new position in Automatic Data Processing in the 2nd quarter valued at about $28,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Company Profile

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.