Longbow Finance SA Decreases Stake in Automatic Data Processing, Inc. $ADP

Longbow Finance SA trimmed its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 32.1% during the third quarter, according to its most recent Form 13F filing with the SEC. The firm owned 25,238 shares of the business services provider’s stock after selling 11,930 shares during the period. Longbow Finance SA’s holdings in Automatic Data Processing were worth $7,407,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in shares of Automatic Data Processing by 0.9% in the 2nd quarter. Vanguard Group Inc. now owns 41,300,182 shares of the business services provider’s stock valued at $12,736,976,000 after purchasing an additional 350,298 shares during the last quarter. State Street Corp grew its stake in shares of Automatic Data Processing by 1.0% during the second quarter. State Street Corp now owns 18,782,407 shares of the business services provider’s stock worth $5,820,445,000 after purchasing an additional 187,415 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of Automatic Data Processing by 3.1% during the second quarter. Geode Capital Management LLC now owns 11,388,935 shares of the business services provider’s stock worth $3,511,698,000 after purchasing an additional 345,798 shares in the last quarter. Laurel Wealth Advisors LLC increased its holdings in Automatic Data Processing by 30,110.7% in the second quarter. Laurel Wealth Advisors LLC now owns 4,668,758 shares of the business services provider’s stock valued at $1,439,845,000 after buying an additional 4,653,304 shares during the last quarter. Finally, Invesco Ltd. raised its stake in Automatic Data Processing by 13.5% in the second quarter. Invesco Ltd. now owns 4,576,681 shares of the business services provider’s stock valued at $1,411,449,000 after buying an additional 544,968 shares in the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.

Wall Street Analyst Weigh In

ADP has been the subject of several recent analyst reports. JPMorgan Chase & Co. decreased their target price on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research note on Thursday, January 29th. Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Cantor Fitzgerald started coverage on shares of Automatic Data Processing in a report on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 target price for the company. Citigroup cut their price target on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research note on Thursday, January 29th. Finally, Wells Fargo & Company reduced their price target on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Two equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $290.00.

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock opened at $209.96 on Friday. The firm’s fifty day simple moving average is $253.55 and its 200-day simple moving average is $273.33. The stock has a market capitalization of $84.54 billion, a price-to-earnings ratio of 20.19 and a beta of 0.85. Automatic Data Processing, Inc. has a 12 month low of $208.62 and a 12 month high of $329.93. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, topping analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The firm had revenue of $5.36 billion during the quarter, compared to analysts’ expectations of $5.34 billion. During the same quarter in the prior year, the business earned $2.35 EPS. Automatic Data Processing’s quarterly 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. As a group, equities analysts forecast that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be issued a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.2%. Automatic Data Processing’s dividend payout ratio (DPR) is currently 65.38%.

Automatic Data Processing announced that its board has approved a stock buyback program on Wednesday, January 14th that permits the company to repurchase $6.00 billion in shares. This repurchase authorization permits the business services provider to buy up to 5.8% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling

In other Automatic Data Processing news, VP David Foskett sold 266 shares of the company’s stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total transaction of $63,042.00. Following the completion of the sale, the vice president directly owned 10,954 shares of the company’s stock, valued at $2,596,098. This represents a 2.37% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Brian L. Michaud sold 1,000 shares of the stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $234.18, for a total value of $234,180.00. Following the sale, the vice president directly owned 15,310 shares of the company’s stock, valued at $3,585,295.80. The trade was a 6.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 3,515 shares of company stock worth $887,074. Insiders own 0.20% of the company’s stock.

Automatic Data Processing 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.