Automatic Data Processing (NASDAQ:ADP) CEO Maria Black Sells 29,810 Shares

Automatic Data Processing, Inc. (NASDAQ:ADP) CEO Maria Black sold 29,810 shares of the firm’s stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $280.91, for a total value of $8,373,927.10. Following the completion of the transaction, the chief executive officer owned 80,624 shares of the company’s stock, valued at $22,648,087.84. The trade was a 26.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Automatic Data Processing Price Performance

NASDAQ:ADP opened at $283.53 on Friday. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $302.68. The company has a market cap of $112.64 billion, a P/E ratio of 25.92, a P/E/G ratio of 2.55 and a beta of 0.82. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05. The stock’s 50-day simple moving average is $261.29 and its 200 day simple moving average is $229.88.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, beating the consensus estimate of $2.59 by $0.05. The firm had revenue of $5.47 billion during the quarter, compared to analysts’ expectations of $5.44 billion. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The business’s quarterly revenue was up 6.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. As a group, sell-side analysts forecast that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, September 11th will be issued a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, September 11th. Automatic Data Processing’s dividend payout ratio is presently 62.16%.

Institutional Investors Weigh In On Automatic Data Processing

Large investors have recently added to or reduced their stakes in the business. Imprint Wealth LLC acquired a new position in shares of Automatic Data Processing in the third quarter valued at $25,000. Cornerstone Financial Management LLC acquired a new stake in shares of Automatic Data Processing during the 4th quarter worth about $26,000. Bard Associates Inc. bought a new stake in shares of Automatic Data Processing during the 4th quarter worth about $28,000. Whipplewood Advisors LLC boosted its holdings in shares of Automatic Data Processing by 2,740.0% during the 1st quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider’s stock worth $29,000 after buying an additional 137 shares during the period. Finally, Prosperity Bancshares Inc acquired a new position in Automatic Data Processing in the 4th quarter valued at about $33,000. Institutional investors own 80.03% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the stock. Weiss Ratings raised shares of Automatic Data Processing from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, July 21st. UBS Group lifted their price objective on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a “neutral” rating in a research report on Wednesday, July 22nd. Guggenheim boosted their price objective on shares of Automatic Data Processing from $270.00 to $300.00 and gave the stock a “buy” rating in a research note on Thursday, July 30th. Stifel Nicolaus upped their target price on shares of Automatic Data Processing from $260.00 to $285.00 and gave the company a “hold” rating in a report on Thursday, July 30th. Finally, Cantor Fitzgerald raised their target price on shares of Automatic Data Processing from $295.00 to $310.00 and gave the company an “overweight” rating in a research note on Monday, August 3rd. Three analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $273.50.

Automatic Data Processing News Roundup

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

• Positive Sentiment: ADP’s August National Employment Report showed private-sector employment increased by 38,000 jobs, while base pay rose 3.2% and gross pay increased 4.7%. The report reinforces ADP’s role as a major source of employment and wage data and points to continued payroll growth, despite a moderating labor market. ADP National Employment Report
• Positive Sentiment: ADP continues to attract income-focused investors as a Dividend Aristocrat with more than 25 consecutive years of annual dividend increases. Its recurring payroll and human-resources revenue base may also appeal to investors seeking defensive exposure. Dividend Stocks Article
• Neutral Sentiment: Analysts and valuation commentary remain broadly balanced. ADP has lagged the broader technology sector over the past year, while one analysis described the shares as approximately 1% undervalued based on fresh labor data. The stock trades near the upper end of its 52-week range, which may limit near-term upside without stronger earnings catalysts. ADP Sector Performance Article
• Neutral Sentiment: Recent data showing Canadian workers benefiting from changing jobs highlights continued wage pressure and employment mobility, factors that could support demand for payroll and workforce-management services but also raise employer costs. Canadian Wage Data
• Negative Sentiment: August private payroll growth of 38,000 fell short of the 47,000 forecast and the prior month’s 44,000 increase. The slowdown could signal weaker hiring activity and slower growth in ADP’s payroll-processing volumes, although it may also increase expectations for easier Federal Reserve policy. ADP August Jobs Report
• Negative Sentiment: CEO Maria Black sold 29,810 shares worth approximately $8.4 million, reducing her direct stake by about 27%. The transaction was executed under a pre-arranged Rule 10b5-1 plan, which reduces its significance as a discretionary bearish signal but may still weigh modestly on sentiment. Maria Black Insider Sale

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.