CIBC Bancorp USA Inc. Takes $22.22 Million Position in Automatic Data Processing, Inc. $ADP

CIBC Bancorp USA Inc. acquired a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP) in the third quarter, HoldingsChannel.com reports. The institutional investor acquired 75,693 shares of the business services provider’s stock, valued at approximately $22,216,000.

Other hedge funds have also added to or reduced their stakes in the company. Imprint Wealth LLC acquired a new position in Automatic Data Processing in the third quarter valued at about $25,000. Howard Hughes Medical Institute acquired a new stake in shares of Automatic Data Processing during the second quarter worth about $27,000. TruNorth Capital Management LLC acquired a new stake in shares of Automatic Data Processing during the third quarter worth about $28,000. Cloud Capital Management LLC bought a new position in shares of Automatic Data Processing during the 3rd quarter valued at about $29,000. Finally, Y.D. More Investments Ltd bought a new position in shares of Automatic Data Processing during the 3rd quarter valued at about $32,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

Insider Buying and Selling at Automatic Data Processing

In related news, VP David Foskett sold 266 shares of the stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction of $63,042.00. Following the completion of the transaction, the vice president owned 10,954 shares in the company, valued at approximately $2,596,098. This represents a 2.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the firm’s stock in a transaction on Friday, February 6th. The shares were sold at an average price of $234.18, for a total transaction of $234,180.00. Following the completion of the transaction, the vice president directly owned 15,310 shares of the company’s stock, valued at approximately $3,585,295.80. This trade represents a 6.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 4,058 shares of company stock worth $1,000,263. Company insiders own 0.20% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on ADP. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. JPMorgan Chase & Co. cut their price target on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research note on Thursday, January 29th. Citigroup reduced their price target on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a report on Thursday, January 29th. Jefferies Financial Group reissued an “underperform” rating and set a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Finally, Wells Fargo & Company dropped their price objective 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. Two equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Automatic Data Processing has a consensus rating of “Hold” and an average price target of $290.00.

Automatic Data Processing Stock Down 0.7%

NASDAQ:ADP opened at $208.28 on Thursday. The stock has a 50-day simple moving average of $231.53 and a 200 day simple moving average of $257.95. Automatic Data Processing, Inc. has a 52-week low of $203.26 and a 52-week high of $329.93. The company has a market cap of $83.86 billion, a PE ratio of 20.03 and a beta of 0.86. 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 earnings results 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. 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 analysts’ expectations of $5.34 billion. During the same quarter in the previous year, the business posted $2.35 EPS. 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, sell-side analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

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 buy up to 5.8% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its shares are undervalued.

Automatic Data Processing Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be given a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s payout ratio is currently 65.38%.

Automatic Data Processing 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.