Wellington Management Group LLP Raises Position in Automatic Data Processing, Inc. $ADP

Wellington Management Group LLP increased its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP) by 47.8% in the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 6,830,294 shares of the business services provider’s stock after purchasing an additional 2,208,927 shares during the period. Wellington Management Group LLP owned 1.69% of Automatic Data Processing worth $2,004,691,000 as of its most recent SEC filing.

Several other institutional investors have also recently added to or reduced their stakes in the business. Howard Hughes Medical Institute acquired a new stake in Automatic Data Processing in the 2nd quarter worth about $27,000. TruNorth Capital Management LLC acquired a new position in shares of Automatic Data Processing during the 3rd quarter valued at about $28,000. Cloud Capital Management LLC purchased a new position in shares of Automatic Data Processing during the 3rd quarter worth about $29,000. Y.D. More Investments Ltd purchased a new position in shares of Automatic Data Processing during the 3rd quarter worth about $32,000. Finally, AlphaQuest LLC acquired a new stake in shares of Automatic Data Processing in the third quarter worth approximately $38,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. Citigroup dropped their price target on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a research report on Thursday, January 29th. Morgan Stanley decreased their price target on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a report on Thursday, January 29th. Jefferies Financial Group reissued an “underperform” rating and set a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Stifel Nicolaus dropped their price objective on Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a report on Monday, February 9th. Finally, Cantor Fitzgerald assumed coverage on Automatic Data Processing in a report on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 target price on the stock. Two research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $290.00.

Automatic Data Processing Stock Up 0.5%

ADP opened at $208.52 on Friday. Automatic Data Processing, Inc. has a 1 year low of $203.26 and a 1 year high of $329.93. The firm has a 50 day moving average price of $234.58 and a 200 day moving average price of $260.24. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. The company has a market cap of $83.96 billion, a PE ratio of 20.05 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, beating 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 for the quarter, compared to analysts’ expectations of $5.34 billion. During the same period in the previous year, the company posted $2.35 earnings per share. Automatic Data Processing’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. Sell-side analysts expect that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The firm also recently announced 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 is Friday, March 13th. This represents a $6.80 annualized dividend and a dividend yield of 3.3%. Automatic Data Processing’s payout ratio is presently 65.38%.

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

Insider Buying and Selling at Automatic Data Processing

In related news, VP David Foskett sold 266 shares of the company’s stock in a transaction on Thursday, February 5th. The shares were 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 approximately $2,596,098. This represents a 2.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP David Kwon sold 900 shares of the stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total value of $234,000.00. Following the completion of the sale, the vice president owned 11,993 shares of the company’s stock, valued at approximately $3,118,180. This represents a 6.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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.

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.