Tradewinds LLC. Acquires New Stake in Automatic Data Processing, Inc. $ADP

Tradewinds LLC. acquired a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP) during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 2,606 shares of the business services provider’s stock, valued at approximately $765,000.

Other hedge funds also recently made changes to their positions in the company. Harbor Asset Planning Inc. purchased a new position in Automatic Data Processing during the second quarter worth about $26,000. Mid American Wealth Advisory Group Inc. purchased a new position in shares of Automatic Data Processing during the 2nd quarter worth approximately $26,000. Howard Hughes Medical Institute purchased a new position in shares of Automatic Data Processing during the 2nd quarter worth approximately $27,000. Solstein Capital LLC acquired a new stake in shares of Automatic Data Processing in the 2nd quarter valued at approximately $28,000. Finally, Westside Investment Management Inc. boosted its stake in shares of Automatic Data Processing by 80.0% in the second 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 in the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.

Insider Buying and Selling at Automatic Data Processing

In related news, VP David Kwon sold 806 shares of the stock in a transaction on Monday, January 12th. The stock was sold at an average price of $264.80, for a total transaction of $213,428.80. Following the sale, the vice president owned 11,187 shares of the company’s stock, valued at $2,962,317.60. This trade represents a 6.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Christopher D’ambrosio sold 543 shares of Automatic Data Processing stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total value of $142,423.47. Following the sale, the vice president owned 9,998 shares of the company’s stock, valued at approximately $2,622,375.42. This represents a 5.15% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 2,249 shares of company stock worth $589,852 over the last 90 days. Company insiders own 0.20% of the company’s stock.

Analysts Set New Price Targets

Several research analysts have issued reports on the company. Jefferies Financial Group reiterated an “underperform” rating and issued a $230.00 price objective (down previously from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Wells Fargo & Company reduced 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. 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 report on Thursday, October 30th. Citigroup assumed 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. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Two research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Automatic Data Processing presently has a consensus rating of “Hold” and an average target price of $306.42.

Automatic Data Processing Stock Performance

NASDAQ:ADP opened at $260.44 on Monday. Automatic Data Processing, Inc. has a twelve month low of $247.18 and a twelve month high of $329.93. The company has a market capitalization of $105.33 billion, a P/E ratio of 25.71 and a beta of 0.86. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.62. The firm has a 50-day moving average price of $257.93 and a two-hundred day moving average price of $281.19.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, October 29th. The business services provider reported $2.49 EPS for the quarter, beating 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 for the quarter, compared to analyst estimates of $5.14 billion. During the same period in the prior year, the business earned $2.33 earnings per share. The company’s quarterly revenue was up 7.1% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, research analysts expect that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, January 14th that permits the company to buyback $6.00 billion in outstanding shares. This buyback authorization permits the business services provider to reacquire up to 5.8% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its stock is undervalued.

Automatic Data Processing Announces Dividend

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

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.