Resona Asset Management Co. Ltd. Cuts Holdings in Automatic Data Processing, Inc. $ADP

Resona Asset Management Co. Ltd. decreased its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP) by 4.5% in the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 140,148 shares of the business services provider’s stock after selling 6,659 shares during the period. Resona Asset Management Co. Ltd.’s holdings in Automatic Data Processing were worth $41,110,000 as of its most recent filing with the Securities & Exchange Commission.

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

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock opened at $257.87 on Friday. The company has a 50 day moving average price of $258.30 and a 200 day moving average price of $279.82. The firm has a market capitalization of $104.30 billion, a P/E ratio of 25.46 and a beta of 0.86. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.62. Automatic Data Processing, Inc. has a 52 week low of $247.18 and a 52 week high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, October 29th. The business services provider reported $2.49 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.44 by $0.05. The business had revenue of $5.18 billion for the quarter, compared to analyst estimates of $5.14 billion. Automatic Data Processing had a net margin of 19.79% and a return on equity of 70.63%. Automatic Data Processing’s revenue for the quarter was up 7.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.33 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Sell-side analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing declared that its board has initiated a share repurchase program on Wednesday, January 14th that allows the company to buyback $6.00 billion in shares. This buyback authorization allows 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 management believes its stock is undervalued.

Automatic Data Processing Dividend Announcement

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

Insiders Place Their Bets

In other Automatic Data Processing news, VP Christopher D’ambrosio sold 543 shares of Automatic Data Processing stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total transaction of $142,423.47. Following the completion of the sale, the vice president owned 9,998 shares of the company’s stock, valued at approximately $2,622,375.42. The trade was a 5.15% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP David Kwon sold 900 shares of the business’s stock in a transaction dated Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total value of $234,000.00. Following the sale, the vice president owned 11,993 shares in the company, valued at approximately $3,118,180. The trade was a 6.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 2,249 shares of company stock valued at $589,852 in the last 90 days. 0.20% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Several analysts have commented on ADP shares. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Jefferies Financial Group reiterated an “underperform” rating and set a $230.00 price objective (down previously from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Citigroup assumed coverage on shares of Automatic Data Processing in a research report on Thursday, October 23rd. They set a “neutral” rating and a $303.00 target price for the company. Wells Fargo & Company cut their price target on shares of Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating on the stock in a report on Thursday, October 30th. Finally, JPMorgan Chase & Co. reduced their price target on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a research report on Thursday, October 30th. 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’s stock. According to data from MarketBeat.com, Automatic Data Processing presently has an average rating of “Hold” and an average target price of $306.42.

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.