Mitsubishi UFJ Asset Management Co. Ltd. Raises Stake in Automatic Data Processing, Inc. $ADP

Mitsubishi UFJ Asset Management Co. Ltd. lifted its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 32.1% during the third quarter, HoldingsChannel reports. The firm owned 3,273,700 shares of the business services provider’s stock after purchasing an additional 796,379 shares during the period. Automatic Data Processing accounts for about 0.7% of Mitsubishi UFJ Asset Management Co. Ltd.’s holdings, making the stock its 21st largest position. Mitsubishi UFJ Asset Management Co. Ltd.’s holdings in Automatic Data Processing were worth $960,831,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors also recently added to or reduced their stakes in ADP. PGIM Custom Harvest LLC lifted its holdings in shares of Automatic Data Processing by 4.9% in the 2nd quarter. PGIM Custom Harvest LLC now owns 722 shares of the business services provider’s stock worth $223,000 after buying an additional 34 shares during the period. Texas Yale Capital Corp. boosted its stake in shares of Automatic Data Processing by 0.4% during the second quarter. Texas Yale Capital Corp. now owns 8,333 shares of the business services provider’s stock valued at $2,570,000 after purchasing an additional 35 shares in the last quarter. Heritage Wealth Management Inc. increased its holdings in Automatic Data Processing by 1.1% during the second 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 period. Fairvoy Private Wealth LLC boosted its position in Automatic Data Processing by 4.2% during the 3rd quarter. Fairvoy Private Wealth LLC now owns 863 shares of the business services provider’s stock valued at $253,000 after acquiring an additional 35 shares in the last quarter. Finally, Wealthspire Advisors LLC raised its position in shares of Automatic Data Processing by 0.4% in the 2nd quarter. Wealthspire Advisors LLC now owns 9,335 shares of the business services provider’s stock worth $2,879,000 after acquiring an additional 36 shares in the last quarter. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the company. Stifel Nicolaus cut their target price 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. 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 note on Thursday, January 29th. Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Wells Fargo & Company cut their price target on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a report on Thursday, January 29th. Finally, Cantor Fitzgerald initiated 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. Two 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 stock. According to data from MarketBeat, Automatic Data Processing has a consensus rating of “Hold” and an average price target of $290.00.

Automatic Data Processing Stock Performance

ADP opened at $214.25 on Thursday. 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, Inc. has a 12-month low of $203.26 and a 12-month high of $329.93. The firm has a 50 day moving average of $244.53 and a two-hundred day moving average of $267.28. The firm has a market capitalization of $86.27 billion, a PE ratio of 20.60 and a beta of 0.85.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, topping 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 firm had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. During the same quarter in the prior year, the business earned $2.35 earnings per share. The business’s quarterly revenue 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, analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current 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 $1.70 dividend. This represents a $6.80 annualized dividend and a yield of 3.2%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s dividend payout ratio is currently 65.38%.

Automatic Data Processing announced that its Board of Directors has initiated a stock buyback 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 stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Activity

In other news, VP Christopher D’ambrosio sold 543 shares of the business’s stock in a transaction that occurred on Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total value of $142,423.47. Following the completion of the sale, the vice president directly owned 9,998 shares in the company, valued at $2,622,375.42. The trade was a 5.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP David Foskett sold 266 shares of the stock in a transaction that occurred 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 in the company, valued at $2,596,098. This trade represents a 2.37% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 3,515 shares of company stock worth $887,074 in the last ninety days. Corporate insiders own 0.20% of the company’s stock.

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.