Automatic Data Processing, Inc. $ADP Shares Acquired by Summit Global Investments

Summit Global Investments lifted its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP) by 5.5% in the third quarter, Holdings Channel reports. The firm owned 40,438 shares of the business services provider’s stock after buying an additional 2,114 shares during the period. Automatic Data Processing comprises about 0.7% of Summit Global Investments’ portfolio, making the stock its 22nd largest position. Summit Global Investments’ holdings in Automatic Data Processing were worth $11,869,000 at the end of the most recent quarter.

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

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on the company. Jefferies Financial Group reissued an “underperform” rating and issued a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Stifel Nicolaus reduced their target price on shares of Automatic Data Processing from $290.00 to $280.00 and set a “hold” rating for the company in a report on Thursday. Wells Fargo & Company decreased their price objective on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a report on Thursday. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Finally, Morgan Stanley lowered their price objective on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research report on Thursday. Three investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock 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 stock has a market capitalization of $99.48 billion, a price-to-earnings ratio of 23.65 and a beta of 0.86. The stock has a 50-day moving average of $258.49 and a 200 day moving average of $278.33. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.62. Automatic Data Processing, Inc. has a twelve month low of $244.44 and a twelve month high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, beating the consensus estimate of $2.57 by $0.05. The company had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.Automatic Data Processing’s quarterly revenue was up 6.2% compared to the same quarter last year. During the same period last year, the company earned $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Sell-side analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

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

Automatic Data Processing announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, January 14th that allows the company to buyback $6.00 billion in shares. This buyback authorization allows the business services provider to buy up to 5.8% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s management believes its shares are undervalued.

Insider Buying and Selling at Automatic Data Processing

In other news, VP Christopher D’ambrosio sold 543 shares of Automatic Data Processing stock in a transaction dated Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total value of $142,423.47. Following the sale, the vice president owned 9,998 shares in the company, valued at $2,622,375.42. This trade represents a 5.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP David Kwon sold 900 shares of the company’s stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $260.00, for a total transaction of $234,000.00. Following the transaction, the vice president owned 11,993 shares of the company’s stock, valued at approximately $3,118,180. This trade represents a 6.98% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 2,249 shares of company stock worth $589,852. Insiders own 0.20% of the company’s stock.

Automatic Data Processing News Roundup

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

• Positive Sentiment: Q2 results beat expectations — EPS $2.62 vs. consensus ~$2.57 and revenue ~$5.36B, with revenue up ~6% YoY; management lifted revenue outlook. PR Newswire: ADP Q2 Results
• Positive Sentiment: Large $6 billion share buyback remains a near-term support catalyst by reducing share count and signaling management confidence. MarketBeat: Buyback Article
• Positive Sentiment: Product/innovation push — ADP launched new AI “ADP Assist” agents aimed at improving payroll/HR automation, which supports long-term revenue and margin expansion potential. PR Newswire: ADP AI Launch
• Neutral Sentiment: New coverage initiated at Cantor Fitzgerald — adds another sell-side voice but not yet a material catalyst. AmericanBankingNews: Coverage Initiated
• Negative Sentiment: Morgan Stanley lowered its price target from $311 to $274 and moved to an “equal weight” rating — one of several same‑day cuts pressuring the stock. Benzinga: Morgan Stanley PT Cut
• Negative Sentiment: Citigroup cut its target from $303 to $265 and set a “neutral” rating — another immediate headwind for sentiment. Benzinga: Citigroup PT Cut
• Negative Sentiment: JPMorgan trimmed its target from $295 to $275 and holds an “underweight” stance — contributing to the selloff. Benzinga: JPMorgan PT Cut
• Negative Sentiment: Wells Fargo reduced its target to $262 and kept an “underweight” rating. Benzinga: Wells Fargo PT Cut TickerReport: Wells Fargo Note
• Negative Sentiment: Stifel trimmed its target from $290 to $280 and moved to a “hold” — part of a cluster of downgrades weighing on investor outlook. Benzinga: Stifel PT Cut

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.