Rhumbline Advisers Sells 22,663 Shares of Automatic Data Processing, Inc. $ADP

Rhumbline Advisers lessened its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 2.7% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 820,633 shares of the business services provider’s stock after selling 22,663 shares during the quarter. Rhumbline Advisers owned about 0.20% of Automatic Data Processing worth $240,856,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in ADP. Laurel Wealth Advisors LLC lifted its holdings 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 worth $1,439,845,000 after purchasing an additional 4,653,304 shares in the last quarter. Norges Bank bought a new position in shares of Automatic Data Processing in the second quarter valued at $696,841,000. Amundi grew its holdings in shares of Automatic Data Processing by 24.9% during the second quarter. Amundi now owns 3,109,120 shares of the business services provider’s stock valued at $948,549,000 after buying an additional 619,829 shares during the last quarter. JPMorgan Chase & Co. increased its position in shares of Automatic Data Processing by 26.6% during the second quarter. JPMorgan Chase & Co. now owns 2,812,637 shares of the business services provider’s stock worth $867,445,000 after acquiring an additional 591,800 shares in the last quarter. Finally, Invesco Ltd. raised its holdings in shares of 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.

Wall Street Analyst Weigh In

A number of brokerages have commented on ADP. Cantor Fitzgerald started coverage on Automatic Data Processing in a report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 price objective for the company. Wells Fargo & Company lowered their price target on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Morgan Stanley cut their price objective 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. 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 research note on Thursday, January 29th. Finally, Jefferies Financial Group reissued an “underperform” rating and set a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Two research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Automatic Data Processing has an average rating of “Hold” and an average target price of $290.00.

Insider Activity

In other 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 value of $63,042.00. Following the transaction, the vice president owned 10,954 shares of the company’s stock, valued at approximately $2,596,098. This represents a 2.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP Christopher D’ambrosio sold 543 shares of the business’s stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total value of $142,423.47. Following the transaction, the vice president directly owned 9,998 shares of the company’s stock, valued at $2,622,375.42. The trade was a 5.15% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 3,515 shares of company stock worth $887,074. Insiders own 0.20% of the company’s stock.

Automatic Data Processing Stock Performance

Shares of ADP stock opened at $225.53 on Wednesday. The firm’s 50 day moving average is $255.39 and its 200 day moving average is $274.17. The stock has a market capitalization of $90.81 billion, a P/E ratio of 21.69 and a beta of 0.85. Automatic Data Processing, Inc. has a 12 month low of $223.44 and a 12 month high of $329.93. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) 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 business had revenue of $5.36 billion for the quarter, compared to analysts’ expectations of $5.34 billion. During the same quarter in the previous year, the firm posted $2.35 EPS. The business’s revenue for the quarter 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. On average, sell-side analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be issued a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s dividend payout ratio is presently 65.38%.

Automatic Data Processing declared that its board has approved a stock buyback plan on Wednesday, January 14th that allows the company to buyback $6.00 billion in outstanding shares. This buyback authorization allows the business services provider to reacquire up to 5.8% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board believes its shares are undervalued.

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.