GUARDCAP ASSET MANAGEMENT Ltd Sells 99,569 Shares of Automatic Data Processing, Inc. $ADP

GUARDCAP ASSET MANAGEMENT Ltd trimmed its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 13.2% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 656,802 shares of the business services provider’s stock after selling 99,569 shares during the period. Automatic Data Processing comprises about 4.5% of GUARDCAP ASSET MANAGEMENT Ltd’s holdings, making the stock its 10th biggest position. GUARDCAP ASSET MANAGEMENT Ltd’s holdings in Automatic Data Processing were worth $192,771,000 at the end of the most recent reporting period.

Several other hedge funds have also recently bought and sold shares of the company. Harbor Asset Planning Inc. purchased a new position in shares of Automatic Data Processing in the second quarter valued at $26,000. Mid American Wealth Advisory Group Inc. acquired a new position in shares of Automatic Data Processing during the 2nd quarter worth approximately $26,000. Howard Hughes Medical Institute acquired a new stake in Automatic Data Processing during the 2nd quarter valued at $27,000. Solstein Capital LLC acquired a new position in shares of Automatic Data Processing in the second quarter worth $28,000. Finally, Westside Investment Management Inc. boosted its stake in shares of Automatic Data Processing by 80.0% during the second quarter. Westside Investment Management Inc. now owns 90 shares of the business services provider’s stock valued at $28,000 after acquiring an additional 40 shares during the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, VP Christopher D’ambrosio sold 543 shares of Automatic Data Processing stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total transaction of $142,423.47. Following the sale, the vice president owned 9,998 shares of the company’s stock, valued at $2,622,375.42. The trade was a 5.15% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP David Kwon sold 806 shares of the business’s stock in a transaction on Monday, January 12th. The stock was sold at an average price of $264.80, for a total transaction 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. This represents a 6.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 3,515 shares of company stock worth $887,074. Company insiders own 0.20% of the company’s stock.

Key Headlines Impacting Automatic Data Processing

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

• Positive Sentiment: Board authorized a $6.0 billion buyback and ADP declared a $1.70 quarterly dividend (ex-dividend March 13, payable April 1), which support buyback-driven EPS accretion and income demand. Read More.
• Neutral Sentiment: Q2 results showed a modest beat (EPS $2.62 vs. $2.57) and revenue growth ~6.2%; FY‑2026 EPS guidance was set at 10.091–11.011 — positive fundamentals but largely already priced in. Read More.
• Negative Sentiment: Insider selling: VP David Foskett sold 266 shares at an average $237 on Feb. 5 (reducing his stake ~2.4%), a small but visible insider sale that may spook short‑term sentiment. Read More.
• Negative Sentiment: Another VP, Brian L. Michaud, sold 1,000 shares at ~$234.18 on Feb. 6 (a ~6.1% reduction in his holding), adding to the insider selling narrative that coincided with a new 12‑month low. Read More.
• Negative Sentiment: Analyst action: Stifel cut its price target from $280 to $270 and kept a “hold” rating, signaling more cautious near‑term expectations and contributing to downward pressure. Read More.
• Negative Sentiment: Market commentary flagged ADP hitting a new 12‑month low amid the recent insider sales and analyst downgrades — a technical/psychological negative for momentum traders. Read More.

Automatic Data Processing Stock Down 2.0%

Shares of NASDAQ ADP opened at $226.63 on Tuesday. The stock has a fifty day moving average price of $256.02 and a 200 day moving average price of $274.75. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. Automatic Data Processing, Inc. has a 12-month low of $224.93 and a 12-month high of $329.93. The company has a market cap of $91.25 billion, a P/E ratio of 21.79 and a beta of 0.85.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, topping the consensus estimate of $2.57 by $0.05. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The company had revenue of $5.36 billion during the quarter, compared to the consensus estimate of $5.34 billion. During the same quarter in the prior year, the business earned $2.35 earnings per share. The company’s revenue was up 6.2% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing declared that its Board of Directors has approved a share repurchase plan on Wednesday, January 14th that allows the company to repurchase $6.00 billion in shares. This repurchase authorization allows the business services provider to reacquire up to 5.8% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its stock is undervalued.

Automatic Data Processing Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be paid 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 dividend yield of 3.0%. Automatic Data Processing’s dividend payout ratio (DPR) is currently 65.38%.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on ADP shares. Wells Fargo & Company decreased their price target on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a research note on Thursday, January 29th. Citigroup lowered their price target 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 reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Morgan Stanley dropped their price objective on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a report on Thursday, January 29th. Finally, Cantor Fitzgerald started coverage on Automatic Data Processing in a research note on Tuesday, January 27th. They set an “overweight” rating and a $306.00 price target for the company. Two equities research 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. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $290.00.

About Automatic Data Processing

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.