Littlejohn Financial Services Inc. Raises Stake in Automatic Data Processing, Inc. $ADP

Littlejohn Financial Services Inc. lifted its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 206.9% during the 3rd quarter, HoldingsChannel.com reports. The institutional investor owned 8,966 shares of the business services provider’s stock after buying an additional 6,045 shares during the quarter. Automatic Data Processing comprises 1.9% of Littlejohn Financial Services Inc.’s holdings, making the stock its 18th biggest position. Littlejohn Financial Services Inc.’s holdings in Automatic Data Processing were worth $2,632,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently bought and sold shares of ADP. Mid American Wealth Advisory Group Inc. purchased a new position in shares of Automatic Data Processing during the 2nd quarter worth $26,000. Harbor Asset Planning Inc. purchased a new position in Automatic Data Processing during the second quarter worth about $26,000. Howard Hughes Medical Institute acquired a new stake in Automatic Data Processing in the 2nd quarter worth about $27,000. Solstein Capital LLC acquired a new stake in Automatic Data Processing in the 2nd quarter worth about $28,000. Finally, Westside Investment Management Inc. grew its holdings in Automatic Data Processing by 80.0% in the 2nd quarter. Westside Investment Management Inc. now owns 90 shares of the business services provider’s stock valued at $28,000 after buying an additional 40 shares during the period. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Trading Up 0.6%

NASDAQ:ADP opened at $258.50 on Thursday. The business’s 50-day moving average is $257.64 and its two-hundred day moving average is $282.05. The firm has a market capitalization of $104.55 billion, a PE ratio of 25.52 and a beta of 0.86. Automatic Data Processing, Inc. has a 12 month low of $247.18 and a 12 month high of $329.93. 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 (NASDAQ:ADP) last issued its earnings results on Wednesday, October 29th. The business services provider reported $2.49 earnings per share for the quarter, topping the consensus estimate of $2.44 by $0.05. The company had revenue of $5.18 billion during the quarter, compared to the consensus estimate of $5.14 billion. Automatic Data Processing had a return on equity of 70.63% and a net margin of 19.79%.The company’s revenue was up 7.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.33 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Research analysts predict that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing announced that its Board of Directors has authorized a share repurchase plan on Wednesday, January 14th that allows the company to buyback $6.00 billion in shares. This buyback authorization allows the business services provider to reacquire up to 5.8% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s leadership believes its shares are undervalued.

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be paid a dividend of $1.70 per share. The ex-dividend date is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.6%. Automatic Data Processing’s dividend payout ratio (DPR) is currently 67.13%.

Insiders Place Their Bets

In other news, VP David Kwon sold 900 shares of the company’s stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total value of $234,000.00. Following the completion of the transaction, the vice president directly 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Christopher D’ambrosio sold 543 shares of the firm’s stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total transaction of $142,423.47. Following the sale, the vice president directly owned 9,998 shares of the company’s stock, valued at approximately $2,622,375.42. The trade was a 5.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 2,249 shares of company stock worth $589,852. Corporate insiders own 0.20% of the company’s stock.

Automatic Data Processing News Summary

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

• Positive Sentiment: Board approved a $6.0 billion stock buyback (about 5.8% of outstanding shares). Buybacks reduce share count, can lift EPS and signal management believes shares are undervalued — a common catalyst for positive investor reaction. Read More.
• Positive Sentiment: Board declared the regular quarterly dividend of $1.70/share (payable April 1, record March 13) — steady yield (about 2.6%) and a 67% payout ratio reinforce cash-flow stability and attract income-focused investors. Read More.
• Neutral Sentiment: ADP’s National Employment Report (NER Pulse) shows continued private payroll gains (~11,750 jobs/week for four weeks ending Dec 20, 2025), supporting demand for ADP’s payroll/HCM data and services, but not an immediate earnings surprise. Read More.
• Neutral Sentiment: Analyst coverage and target adjustments are shifting the narrative; mixed revisions (some cuts, some holds) mean analyst action could amplify moves, but the net impact will depend on follow-up changes. Read More.
• Negative Sentiment: Insider sale: VP David Kwon sold 806 shares (~$213k) on Jan 12, a ~6.7% reduction in his holding — routine but may be viewed slightly negatively by some investors. Read More.
• Negative Sentiment: Insider sale: VP Christopher D’ambrosio sold 543 shares (~$142k) on Jan 13, a ~5.1% cut in his stake — another modest insider sale investors may note, though small relative to total float. Read More.

Wall Street Analysts Forecast Growth

ADP has been the subject of a number of recent analyst reports. Citigroup started coverage on shares of Automatic Data Processing in a report on Thursday, October 23rd. They issued a “neutral” rating and a $303.00 target price for the company. Wells Fargo & Company lowered their price objective on shares of Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating for the company in a research note on Thursday, October 30th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Jefferies Financial Group reiterated an “underperform” rating and issued a $230.00 target price (down previously from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Finally, UBS Group cut their price objective on Automatic Data Processing from $315.00 to $290.00 and set a “neutral” rating on the stock in a report on Wednesday, September 17th. Two 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’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $306.42.

About Automatic Data Processing

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.