NEOS Investment Management LLC Boosts Stock Position in Automatic Data Processing, Inc. $ADP

NEOS Investment Management LLC raised its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 62.4% in the third quarter, Holdings Channel reports. The institutional investor owned 174,272 shares of the business services provider’s stock after buying an additional 66,970 shares during the quarter. NEOS Investment Management LLC’s holdings in Automatic Data Processing were worth $51,149,000 as of its most recent SEC filing.

Other institutional investors also recently bought and sold shares of the company. Jacobsen Capital Management grew its stake in shares of Automatic Data Processing by 3.8% in the second quarter. Jacobsen Capital Management now owns 907 shares of the business services provider’s stock worth $280,000 after acquiring an additional 33 shares during the period. Signature Wealth Management Group boosted its holdings in Automatic Data Processing by 2.3% in the second quarter. Signature Wealth Management Group now owns 1,450 shares of the business services provider’s stock worth $447,000 after purchasing an additional 33 shares during the last quarter. PGIM Custom Harvest LLC boosted its holdings in Automatic Data Processing by 4.9% in the second quarter. PGIM Custom Harvest LLC now owns 722 shares of the business services provider’s stock worth $223,000 after purchasing an additional 34 shares during the last quarter. Texas Yale Capital Corp. grew its position in Automatic Data Processing by 0.4% in the 2nd quarter. Texas Yale Capital Corp. now owns 8,333 shares of the business services provider’s stock worth $2,570,000 after purchasing an additional 35 shares during the period. Finally, Heritage Wealth Management Inc. raised its stake in Automatic Data Processing by 1.1% during the 2nd quarter. Heritage Wealth Management Inc. now owns 3,340 shares of the business services provider’s stock valued at $1,030,000 after buying an additional 35 shares during the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other Automatic Data Processing news, VP Christopher D’ambrosio sold 543 shares of the stock in a transaction that occurred on 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 directly owned 9,998 shares of the company’s stock, valued at approximately $2,622,375.42. This represents a 5.15% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, VP David Kwon sold 806 shares of Automatic Data Processing stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $264.80, for a total value of $213,428.80. Following the sale, the vice president owned 11,187 shares in the company, valued at $2,962,317.60. This trade represents a 6.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 3,515 shares of company stock worth $887,074. Corporate insiders own 0.20% of the company’s stock.

Automatic Data Processing Trading Up 1.0%

NASDAQ ADP opened at $212.11 on Tuesday. Automatic Data Processing, Inc. has a 12-month low of $208.62 and a 12-month high of $329.93. The company has a fifty day simple moving average of $251.62 and a two-hundred day simple moving average of $271.46. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. The stock has a market cap of $85.40 billion, a P/E ratio of 20.40 and a beta of 0.85.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.57 by $0.05. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The firm had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. During the same period in the prior year, the firm 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, analysts forecast that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing announced that its board has initiated a stock repurchase program 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 buy up to 5.8% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

Automatic Data Processing Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be paid a $1.70 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.2%. Automatic Data Processing’s dividend payout ratio (DPR) is 65.38%.

Analysts Set New Price Targets

A number of analysts recently commented on ADP shares. Wells Fargo & Company reduced their price objective 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. Stifel Nicolaus reduced their price objective on Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a research note on Monday, February 9th. Jefferies Financial Group reiterated an “underperform” rating and issued a $230.00 price target (down previously from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. JPMorgan Chase & Co. reduced their price objective on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research report on Thursday, January 29th. Finally, Cantor Fitzgerald initiated coverage on Automatic Data Processing in a research report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price for the company. Two investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Automatic Data Processing currently has an average rating of “Hold” and a consensus target price of $290.00.

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.