Public Sector Pension Investment Board Grows Stake in Automatic Data Processing, Inc. $ADP

Public Sector Pension Investment Board boosted its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 14.2% in the third quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 35,049 shares of the business services provider’s stock after acquiring an additional 4,363 shares during the quarter. Public Sector Pension Investment Board’s holdings in Automatic Data Processing were worth $10,287,000 at the end of the most recent reporting period.

A number of other institutional investors also recently bought and sold shares of ADP. Laurel Wealth Advisors LLC increased its position in shares of Automatic Data Processing by 30,110.7% during the 2nd quarter. Laurel Wealth Advisors LLC now owns 4,668,758 shares of the business services provider’s stock valued at $1,439,845,000 after purchasing an additional 4,653,304 shares during the last quarter. Norges Bank bought a new stake in Automatic Data Processing during the second quarter valued at approximately $696,841,000. Amundi increased its holdings in Automatic Data Processing by 24.9% during the second quarter. Amundi now owns 3,109,120 shares of the business services provider’s stock valued at $948,549,000 after buying an additional 619,829 shares during the last quarter. JPMorgan Chase & Co. raised its position in Automatic Data Processing by 26.6% in the second quarter. JPMorgan Chase & Co. now owns 2,812,637 shares of the business services provider’s stock worth $867,445,000 after acquiring an additional 591,800 shares during the period. Finally, Invesco Ltd. raised its position in Automatic Data Processing by 13.5% in the second quarter. Invesco Ltd. now owns 4,576,681 shares of the business services provider’s stock worth $1,411,449,000 after acquiring an additional 544,968 shares during the period. Institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Price Performance

Shares of NASDAQ:ADP opened at $212.11 on Tuesday. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. The firm has a fifty day moving average price of $251.62 and a 200 day moving average price of $271.46. Automatic Data Processing, Inc. has a fifty-two week low of $208.62 and a fifty-two week high of $329.93. The firm has a market cap of $85.40 billion, a price-to-earnings ratio of 20.40 and a beta of 0.85.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The company had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. During the same period in the previous year, the firm posted $2.35 EPS. Automatic Data Processing’s revenue for the quarter was up 6.2% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, sell-side analysts expect that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

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 issued a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a dividend yield of 3.2%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s dividend payout ratio is 65.38%.

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

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on ADP. Stifel Nicolaus cut their price objective on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a research report on Monday, February 9th. Jefferies Financial Group reaffirmed an “underperform” rating and issued a $230.00 price objective (down previously from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Wells Fargo & Company lowered their price target on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a report on Thursday, January 29th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research report on Thursday, January 29th. Two investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $290.00.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP Christopher D’ambrosio sold 543 shares of Automatic Data Processing stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total value of $142,423.47. Following the completion of the transaction, the vice president directly owned 9,998 shares of the company’s stock, valued at $2,622,375.42. This trade represents a 5.15% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, VP David Foskett sold 266 shares of the company’s stock in a transaction dated Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction of $63,042.00. Following the sale, the vice president owned 10,954 shares in the company, valued at $2,596,098. This represents a 2.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 3,515 shares of company stock valued at $887,074. 0.20% of the stock is owned by company insiders.

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.