Automatic Data Processing, Inc. $ADP Stock: International Assets Investment Management LLC Increases Stake

International Assets Investment Management LLC grew its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 3,373.0% during the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 135,864 shares of the business services provider’s stock after purchasing an additional 131,952 shares during the period. International Assets Investment Management LLC’s holdings in Automatic Data Processing were worth $35,061,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds also recently made changes to their positions in the stock. BlackRock Inc. bought a new position in shares of Automatic Data Processing in the 2nd quarter valued at $8,097,229,000. Bank of America Corp DE bought a new stake in Automatic Data Processing during the 2nd quarter worth $1,231,175,000. Deutsche Bank AG acquired a new position in Automatic Data Processing in the 2nd quarter worth about $994,937,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in Automatic Data Processing by 3.1% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,251,447 shares of the business services provider’s stock worth $952,112,000 after purchasing an additional 129,376 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new position in Automatic Data Processing in the second quarter valued at about $725,513,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several analysts have recently weighed in on the company. Citigroup boosted their price target on Automatic Data Processing from $287.00 to $295.00 and gave the stock a “neutral” rating in a report on Thursday. UBS Group raised their price objective on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a “neutral” rating in a report on Wednesday, July 22nd. Royal Bank Of Canada reiterated a “sector perform” rating and set a $290.00 target price on shares of Automatic Data Processing in a research report on Thursday. Guggenheim reiterated a “buy” rating and set a $340.00 target price on shares of Automatic Data Processing in a research report on Thursday. Finally, Jefferies Financial Group boosted their target price on shares of Automatic Data Processing from $225.00 to $250.00 and gave the stock an “underperform” rating in a report on Wednesday. Three 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 company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $283.27.

Automatic Data Processing Stock Up 2.7%

Shares of ADP opened at $293.84 on Friday. The company has a market capitalization of $116.43 billion, a PE ratio of 26.05, a PEG ratio of 2.58 and a beta of 0.83. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $309.40. The stock’s 50-day moving average price is $277.25 and its two-hundred day moving average price is $240.83. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.98.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, October 28th. The business services provider reported $2.82 EPS for the quarter, beating analysts’ consensus estimates of $2.77 by $0.05. The firm had revenue of $5.49 billion for the quarter, compared to analyst estimates of $5.48 billion. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. The business’s revenue was up 6.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.49 EPS. On average, analysts anticipate that Automatic Data Processing, Inc. will post 12.34 EPS for the current year.

Automatic Data Processing Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Friday, September 11th were paid a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend was Friday, September 11th. Automatic Data Processing’s payout ratio is currently 60.28%.

Insider Buying and Selling

In other Automatic Data Processing news, VP Joseph Desilva sold 631 shares of the firm’s stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $282.87, for a total transaction of $178,490.97. Following the completion of the transaction, the vice president owned 18,824 shares in the company, valued at approximately $5,324,744.88. This trade represents a 3.24% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian L. Michaud sold 120 shares of the business’s stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $279.70, for a total transaction of $33,564.00. Following the completion of the transaction, the vice president owned 18,442 shares in the company, valued at $5,158,227.40. This trade represents a 0.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 31,359 shares of company stock valued at $8,809,422. Insiders own 0.15% of the company’s stock.

Automatic Data Processing News Roundup

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

• Positive Sentiment: Raised fiscal 2027 outlook: ADP now forecasts 10%–12% growth in adjusted earnings per share and raised its outlook for client-funds interest revenue to $1.59 billion–$1.61 billion. The improved guidance is the clearest near-term catalyst for the stock. ADP forecasts fiscal 2027 adjusted EPS growth
• Positive Sentiment: Quarterly results exceeded expectations: ADP reported earnings of $2.82 per share versus the $2.77 consensus estimate, while revenue of $5.49 billion modestly topped forecasts and increased 6.1% year over year. Management also highlighted AI momentum during the earnings call. ADP fiscal 2027 first-quarter results
• Positive Sentiment: Some analysts see additional upside: Guggenheim reaffirmed a Buy rating with a $340 price target, while Stifel raised its target to $305. Jefferies also lifted its target, although it retained an Underperform rating. Guggenheim ADP rating
• Neutral Sentiment: Expansion in small-business payroll: ADP is broadening its reach among small-business customers, a move that could support long-term client and revenue growth but may require additional investment. ADP small-business payroll expansion
• Negative Sentiment: Valuation and analyst caution: Citi, Morgan Stanley, and RBC maintain neutral or equivalent ratings with targets around $288–$295, while Jefferies remains bearish. A Seeking Alpha analysis also argues that investors should not chase the rally despite ADP’s attractive dividend-growth record. ADP dividend growth and valuation analysis

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (NASDAQ: ADP) is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.