Compass Capital Management Inc. Raises Stock Holdings in Automatic Data Processing, Inc. $ADP

Compass Capital Management Inc. lifted its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 7.1% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 218,194 shares of the business services provider’s stock after buying an additional 14,484 shares during the quarter. Automatic Data Processing comprises 2.6% of Compass Capital Management Inc.’s portfolio, making the stock its 25th biggest holding. Compass Capital Management Inc. owned 0.05% of Automatic Data Processing worth $44,333,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also recently made changes to their positions in ADP. Imprint Wealth LLC bought a new position in shares of Automatic Data Processing during the 3rd quarter valued at approximately $25,000. Cornerstone Financial Management LLC bought a new stake in Automatic Data Processing during the 4th quarter worth approximately $26,000. Bard Associates Inc. purchased a new position in Automatic Data Processing during the fourth quarter valued at approximately $28,000. Whipplewood Advisors LLC lifted its holdings in Automatic Data Processing by 2,740.0% during the first quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider’s stock valued at $29,000 after purchasing an additional 137 shares in the last quarter. Finally, Prosperity Bancshares Inc bought a new position in shares of Automatic Data Processing in the fourth quarter worth approximately $33,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing News Roundup

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Quarterly results exceeded expectations. ADP reported adjusted earnings of $2.64 per share versus the $2.59 consensus estimate, while revenue of $5.47 billion topped estimates of $5.44 billion and increased 6.8% year over year. Management’s fiscal 2027 EPS guidance of $12.12–$12.34 also supports the bullish outlook. ADP’s Q2 CY2026 sales beat estimates
• Positive Sentiment: Analysts raised price targets following the earnings report. Guggenheim increased its target to $300 and upgraded ADP to “buy.” BMO Capital Markets raised its target to $305, while Citigroup, Morgan Stanley, Stifel and Wells Fargo lifted targets to $287, $286, $285 and $283, respectively. These revisions indicate improved confidence in ADP’s earnings outlook. BMO Capital Markets increases ADP price target
• Positive Sentiment: A new buy recommendation adds further support. Commentary following the earnings release described ADP’s valuation as reasonable after its strong long-term performance and maintained a constructive view of the stock. Automatic Data Processing new buy recommendation
• Neutral Sentiment: Most analysts remain cautious despite higher targets. Citigroup, Morgan Stanley, Stifel and Wells Fargo maintained neutral, equal-weight or hold ratings, suggesting that much of the earnings improvement may already be reflected in ADP’s valuation.
• Negative Sentiment: An executive sold shares. Vice President David Kwon sold 2,414 shares for approximately $641,207, reducing his ownership by about 20%. The transaction was conducted under a pre-arranged Rule 10b5-1 plan, which reduces its significance as a discretionary bearish signal. SEC insider transaction filing

Insider Buying and Selling at Automatic Data Processing

In related news, VP David Kwon sold 2,414 shares of the firm’s stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $265.62, for a total transaction of $641,206.68. Following the completion of the transaction, the vice president directly owned 9,660 shares of the company’s stock, valued at approximately $2,565,889.20. This trade represents a 19.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.20% of the company’s stock.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. Cantor Fitzgerald increased their price objective on shares of Automatic Data Processing from $244.00 to $295.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 22nd. BMO Capital Markets lifted their target price on shares of Automatic Data Processing from $248.00 to $305.00 and gave the company a “market perform” rating in a research note on Wednesday. Wells Fargo & Company upped their target price on shares of Automatic Data Processing from $248.00 to $283.00 and gave the stock an “equal weight” rating in a report on Thursday. Argus cut their price target on Automatic Data Processing from $300.00 to $240.00 and set a “buy” rating for the company in a research note on Tuesday, May 5th. Finally, Mizuho cut their price target on Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. Three analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Automatic Data Processing currently has an average rating of “Hold” and a consensus price target of $272.43.

Automatic Data Processing Trading Up 1.0%

ADP stock opened at $266.46 on Friday. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $315.26. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.04. The company has a market capitalization of $106.51 billion, a price-to-earnings ratio of 24.36 and a beta of 0.83. The business has a 50 day simple moving average of $235.88 and a two-hundred day simple moving average of $224.60.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.59 by $0.05. The business had revenue of $5.47 billion during the quarter, compared to analyst estimates of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The company’s revenue was up 6.8% on a year-over-year basis. During the same period last year, the firm posted $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Research analysts anticipate that Automatic Data Processing, Inc. will post 12.24 EPS for the current fiscal year.

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.