Short Interest in Automatic Data Processing, Inc. (NASDAQ:ADP) Expands By 20.7%

Automatic Data Processing, Inc. (NASDAQ:ADP) saw a large growth in short interest during the month of January. As of January 30th, there was short interest totaling 8,901,390 shares, a growth of 20.7% from the January 15th total of 7,377,784 shares. Currently, 2.2% of the shares of the company are sold short. Based on an average trading volume of 2,810,636 shares, the short-interest ratio is currently 3.2 days. Based on an average trading volume of 2,810,636 shares, the short-interest ratio is currently 3.2 days. Currently, 2.2% of the shares of the company are sold short.

Automatic Data Processing Stock Up 1.9%

Automatic Data Processing stock opened at $217.21 on Thursday. Automatic Data Processing has a fifty-two week low of $208.62 and a fifty-two week high of $329.93. The firm has a market capitalization of $87.46 billion, a price-to-earnings ratio of 20.89 and a beta of 0.85. The stock’s fifty day moving average is $249.88 and its two-hundred day moving average is $270.47. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.57 by $0.05. The business had revenue of $5.36 billion during the quarter, compared to the consensus estimate of $5.34 billion. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The business’s revenue was up 6.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.35 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Analysts predict that Automatic Data Processing will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be given a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a dividend yield of 3.1%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s payout ratio is currently 65.38%.

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

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP David Kwon sold 806 shares of Automatic Data Processing stock in a transaction that occurred on Monday, January 12th. The shares were 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 in the company, valued at approximately $2,962,317.60. The trade was a 6.72% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, VP Christopher D’ambrosio sold 543 shares of the 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 completion of the sale, the vice president owned 9,998 shares in the company, 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. In the last quarter, insiders sold 3,515 shares of company stock worth $887,074. 0.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Automatic Data Processing

Several hedge funds have recently bought and sold shares of ADP. Imprint Wealth LLC purchased a new stake in Automatic Data Processing during the 3rd quarter worth about $25,000. Mid American Wealth Advisory Group Inc. acquired a new stake in shares of Automatic Data Processing during the 2nd quarter worth about $26,000. Cornerstone Financial Management LLC purchased a new stake in shares of Automatic Data Processing during the fourth quarter worth about $26,000. Howard Hughes Medical Institute purchased a new stake in shares of Automatic Data Processing during the second quarter worth about $27,000. Finally, Solstein Capital LLC acquired a new position in shares of Automatic Data Processing in the second quarter valued at approximately $28,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Analyst Ratings Changes

ADP has been the subject of several analyst reports. Morgan Stanley decreased their target price on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research note on Thursday, January 29th. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Cantor Fitzgerald initiated coverage on Automatic Data Processing in a research note on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 price target for the company. Stifel Nicolaus lowered their price target on Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a research report on Monday, February 9th. Finally, Jefferies Financial Group restated an “underperform” rating and issued a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Two equities 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 company’s stock. Based on 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.