Townsquare Capital LLC Reduces Stock Position in Automatic Data Processing, Inc. $ADP

Townsquare Capital LLC lowered its position in Automatic Data Processing, Inc. (NASDAQ:ADP) by 37.1% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 8,580 shares of the business services provider’s stock after selling 5,071 shares during the quarter. Townsquare Capital LLC’s holdings in Automatic Data Processing were worth $2,518,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds have also made changes to their positions in ADP. Harbor Asset Planning Inc. acquired a new stake in 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 second quarter worth $26,000. Howard Hughes Medical Institute purchased a new stake in Automatic Data Processing during the 2nd quarter worth approximately $27,000. Solstein Capital LLC acquired a new stake in shares of Automatic Data Processing in the 2nd 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 worth $28,000 after purchasing an additional 40 shares in the last quarter. 80.03% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

ADP has been the subject of several recent research reports. Wells Fargo & Company lowered their target price on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a report on Thursday. Jefferies Financial Group reissued an “underperform” rating and set a $230.00 target price (down previously from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Cantor Fitzgerald began coverage on Automatic Data Processing in a research note on Tuesday. They set an “overweight” rating and a $306.00 price target for the company. Citigroup reduced their price objective 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. Finally, JPMorgan Chase & Co. reduced their target price on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a report on Thursday. Three research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $295.38.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $245.97 on Friday. The firm has a market capitalization of $99.48 billion, a PE ratio of 23.65 and a beta of 0.86. Automatic Data Processing, Inc. has a 1 year low of $244.44 and a 1 year high of $329.93. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.62. The firm’s fifty day simple moving average is $258.49 and its 200 day simple moving average is $278.33.

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, beating the consensus estimate 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 business had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. During the same period in the previous year, the business earned $2.35 EPS. The firm’s revenue was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, sell-side analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be given a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s dividend payout ratio is presently 67.13%.

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

Insider Activity at Automatic Data Processing

In related news, VP David Kwon sold 806 shares of Automatic Data Processing 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 sale, the vice president directly owned 11,187 shares of the company’s stock, valued at $2,962,317.60. The trade was a 6.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Christopher D’ambrosio sold 543 shares of Automatic Data Processing stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total transaction of $142,423.47. Following the transaction, the vice president directly owned 9,998 shares in the company, valued at approximately $2,622,375.42. This represents a 5.15% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 2,249 shares of company stock worth $589,852 over the last three months. 0.20% of the stock is owned by insiders.

Trending Headlines about Automatic Data Processing

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

• Positive Sentiment: Q2 results beat: ADP reported $2.62 EPS and $5.36B revenue (rev +6.2% y/y), topping estimates and lifting annual revenue outlook — proof of steady demand for payroll/HR services. Reuters: ADP lifts annual revenue forecast
• Positive Sentiment: Large buyback support: Management authorized a roughly $6 billion share repurchase program, which reduces float and can be a near‑term earnings/shares support catalyst. MarketBeat: 3 Large-Cap Stocks Announce Big Buyback Boosts
• Positive Sentiment: Product/innovation momentum: ADP launched ADP Assist AI agents aimed at automating HR and payroll workflows — a strategic investment that could improve product stickiness and long‑term margins. PR Newswire: ADP launches AI agents
• Neutral Sentiment: FY26 guidance mixed: ADP provided FY26 EPS and revenue ranges that overlap but do not materially beat consensus — guidance gives a longer‑term view but left some analysts unconvinced. (See Q2 earnings coverage for details.) Zacks: ADP Q2 earnings top estimates
• Neutral Sentiment: New coverage: Cantor Fitzgerald initiated coverage (bringing fresh analyst attention but not yet a consensus driver). American Banking News: Coverage Initiated
• Neutral Sentiment: Reported short‑interest data appears noisy/unclear in recent filings and isn’t a clear driver of price action at this point.
• Negative Sentiment: Analyst downgrades and price‑target cuts: Several firms (Morgan Stanley, Citi, JPMorgan, Wells Fargo, Stifel) trimmed targets and moved to neutral/underweight ratings, signaling lowered near‑term sentiment and pressuring the stock. Benzinga: Analyst actions summary
• Negative Sentiment: Technical/market pressure: ADP hit a 52‑week low, reinforcing bearish momentum and likely contributing to today’s selling. Investing.com: ADP hits 52-week low

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.