2,794 Automatic Data Processing, Inc. $ADP Shares Sold by Profund Advisors LLC

Profund Advisors LLC trimmed its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 8.9% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 28,626 shares of the business services provider’s stock after selling 2,794 shares during the quarter. Profund Advisors LLC’s holdings in Automatic Data Processing were worth $7,387,000 at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in the business. BlackRock Inc. bought a new stake in shares of Automatic Data Processing during the 2nd quarter worth $8,097,229,000. Bank of America Corp DE purchased a new stake in Automatic Data Processing during the 2nd quarter valued at about $1,231,175,000. Deutsche Bank AG purchased a new stake in Automatic Data Processing during the 2nd quarter valued at $994,937,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in Automatic Data Processing by 3.1% during the second 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 valued at $952,112,000 after purchasing an additional 129,376 shares during the period. Finally, Bank of New York Mellon Corp bought a new position in Automatic Data Processing in the 2nd quarter worth approximately $725,513,000. 80.03% of the stock is owned by institutional investors.

More Automatic Data Processing News

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 Stock Up 2.7%

ADP stock opened at $293.84 on Friday. The firm has a market cap of $116.43 billion, a PE ratio of 26.05, a PEG ratio of 2.65 and a beta of 0.83. The company has a fifty day simple moving average of $277.25 and a 200 day simple moving average of $240.83. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $309.40. 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 announced its quarterly earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share (EPS) for the quarter, beating the consensus estimate 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 net margin of 20.33% and a return on equity of 77.01%. The business’s revenue for the quarter was up 6.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.49 EPS. Sell-side analysts anticipate that Automatic Data Processing, Inc. will post 12.36 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

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

Wall Street Analyst Weigh In

Several equities analysts have recently commented on ADP shares. Morgan Stanley raised their price target on Automatic Data Processing from $286.00 to $288.00 and gave the company an “equal weight” rating in a research note on Thursday. Guggenheim reiterated a “buy” rating and issued a $340.00 target price on shares of Automatic Data Processing in a report on Thursday. Jefferies Financial Group increased their price target on Automatic Data Processing from $225.00 to $250.00 and gave the company an “underperform” rating in a research report on Wednesday. Citigroup increased their target price on shares of Automatic Data Processing from $287.00 to $295.00 and gave the stock a “neutral” rating in a research note on Thursday. Finally, Cantor Fitzgerald increased their price objective on Automatic Data Processing from $295.00 to $310.00 and gave the company an “overweight” rating in a research note on Monday, August 3rd. Three equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $283.27.

Insider Activity

In other news, VP David Kwon sold 798 shares of the firm’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $280.00, for a total transaction of $223,440.00. Following the completion of the transaction, the vice president owned 13,193 shares of the company’s stock, valued at approximately $3,694,040. This trade represents a 5.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Joseph Desilva sold 631 shares of the stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total value of $178,490.97. Following the transaction, the vice president owned 18,824 shares in the company, valued at $5,324,744.88. The trade was a 3.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 31,359 shares of company stock valued at $8,809,422. Company insiders own 0.15% of the company’s stock.

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.