Automatic Data Processing, Inc. $ADP Shares Sold by Nordea Investment Management AB

Nordea Investment Management AB lowered its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 19.6% in the third quarter, Holdings Channel reports. The institutional investor owned 1,184,798 shares of the business services provider’s stock after selling 288,037 shares during the quarter. Nordea Investment Management AB’s holdings in Automatic Data Processing were worth $344,125,000 as of its most recent SEC filing.

Other large investors have also recently added to or reduced their stakes in the company. Mid American Wealth Advisory Group Inc. bought a new stake in shares of Automatic Data Processing in the 2nd quarter worth about $26,000. Harbor Asset Planning Inc. bought a new position in Automatic Data Processing in the 2nd quarter worth about $26,000. Howard Hughes Medical Institute acquired a new position in Automatic Data Processing during the 2nd quarter worth $27,000. Solstein Capital LLC acquired a new position in shares of Automatic Data Processing during the second quarter valued at $28,000. Finally, Westside Investment Management Inc. raised its stake in shares of Automatic Data Processing by 80.0% during the second quarter. Westside Investment Management Inc. now owns 90 shares of the business services provider’s stock valued at $28,000 after purchasing an additional 40 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several equities analysts have commented on ADP shares. JPMorgan Chase & Co. lowered their target price on shares of Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a research note on Thursday, October 30th. UBS Group decreased their price objective on shares of Automatic Data Processing from $315.00 to $290.00 and set a “neutral” rating for the company in a report on Wednesday, September 17th. Wells Fargo & Company dropped their target price on Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating on the stock in a report on Thursday, October 30th. Citigroup started coverage on Automatic Data Processing in a research report on Thursday, October 23rd. They issued a “neutral” rating and a $303.00 target price for the company. Finally, Jefferies Financial Group reaffirmed an “underperform” rating and set a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Two investment 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.com, the company has a consensus rating of “Hold” and an average target price of $306.42.

Automatic Data Processing Stock Down 1.2%

ADP stock opened at $262.80 on Tuesday. The firm has a market capitalization of $106.29 billion, a P/E ratio of 25.94 and a beta of 0.86. The company’s 50 day simple moving average is $257.71 and its 200-day simple moving average is $282.54. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.05 and a quick ratio of 1.05. Automatic Data Processing, Inc. has a 52-week low of $247.18 and a 52-week high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings results on Wednesday, October 29th. The business services provider reported $2.49 EPS for the quarter, topping the consensus estimate of $2.44 by $0.05. Automatic Data Processing had a net margin of 19.79% and a return on equity of 70.63%. The business had revenue of $5.18 billion during the quarter, compared to analysts’ expectations of $5.14 billion. During the same period last year, the company posted $2.33 earnings per share. The firm’s quarterly revenue was up 7.1% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, equities research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, January 1st. Stockholders of record on Friday, December 12th were issued a dividend of $1.70 per share. The ex-dividend date was Friday, December 12th. This represents a $6.80 annualized dividend and a dividend yield of 2.6%. This is a positive change from Automatic Data Processing’s previous quarterly dividend of $1.54. Automatic Data Processing’s dividend payout ratio is presently 67.13%.

Insider Activity

In related news, VP David Kwon sold 900 shares of the stock in a transaction that occurred on Tuesday, January 6th. The stock was sold at an average price of $260.00, for a total value of $234,000.00. Following the transaction, the vice president owned 11,993 shares in the company, valued at approximately $3,118,180. This represents a 6.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 0.20% of the stock is currently owned by corporate insiders.

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.