Smith Salley Wealth Management Cuts Stake in Automatic Data Processing, Inc. $ADP

Smith Salley Wealth Management lessened its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 32.6% in the 4th quarter, Holdings Channel reports. The firm owned 6,596 shares of the business services provider’s stock after selling 3,193 shares during the period. Smith Salley Wealth Management’s holdings in Automatic Data Processing were worth $1,697,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in the stock. Davidson Trust Co. boosted its holdings in shares of Automatic Data Processing by 3.6% during the 4th quarter. Davidson Trust Co. now owns 9,676 shares of the business services provider’s stock valued at $2,489,000 after purchasing an additional 332 shares during the last quarter. TD Waterhouse Canada Inc. boosted its holdings in shares of Automatic Data Processing by 5.5% during the 4th quarter. TD Waterhouse Canada Inc. now owns 14,214 shares of the business services provider’s stock valued at $3,656,000 after purchasing an additional 740 shares during the last quarter. Tred Avon Family Wealth LLC boosted its holdings in shares of Automatic Data Processing by 36.9% during the 4th quarter. Tred Avon Family Wealth LLC now owns 1,971 shares of the business services provider’s stock valued at $507,000 after purchasing an additional 531 shares during the last quarter. Revisor Wealth Management LLC boosted its holdings in shares of Automatic Data Processing by 11.9% during the 4th quarter. Revisor Wealth Management LLC now owns 2,707 shares of the business services provider’s stock valued at $705,000 after purchasing an additional 288 shares during the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank boosted its holdings in shares of Automatic Data Processing by 2.1% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 261,689 shares of the business services provider’s stock valued at $67,314,000 after purchasing an additional 5,319 shares during the last quarter. Institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Price Performance

Automatic Data Processing stock opened at $200.47 on Monday. The firm has a market cap of $80.72 billion, a P/E ratio of 19.28 and a beta of 0.85. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. The business has a fifty day moving average of $209.17 and a two-hundred day moving average of $243.42. Automatic Data Processing, Inc. has a twelve month low of $188.16 and a twelve month high of $329.93.

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

Automatic Data Processing Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 12th will be issued a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a dividend yield of 3.4%. The ex-dividend date of this dividend is Friday, June 12th. Automatic Data Processing’s dividend payout ratio (DPR) is 65.38%.

Automatic Data Processing announced that its board has initiated a stock buyback program on Wednesday, January 14th that permits the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization permits the business services provider to repurchase up to 5.8% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s management believes its stock is undervalued.

Analysts Set New Price Targets

ADP has been the topic of several recent research reports. Guggenheim initiated coverage on Automatic Data Processing in a report on Thursday, March 19th. They set a “buy” rating and a $270.00 price objective on the stock. Stifel Nicolaus reduced their target price on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a report on Monday, February 9th. Wells Fargo & Company reduced their target price on shares of Automatic Data Processing from $262.00 to $214.00 and set an “underweight” rating on the stock in a report on Friday, March 27th. Cantor Fitzgerald initiated coverage on shares of Automatic Data Processing in a report on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 target price on the stock. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $278.62.

Insider Buying and Selling

In related news, VP Christopher D’ambrosio sold 543 shares of the firm’s stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $208.45, for a total transaction of $113,188.35. Following the sale, the vice president directly owned 8,912 shares of the company’s stock, valued at $1,857,706.40. This trade represents a 5.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP David Foskett sold 266 shares of the stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total transaction of $63,042.00. Following the sale, the vice president directly owned 10,954 shares in the company, valued at $2,596,098. This trade represents a 2.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,809 shares of company stock valued at $410,410 over the last ninety days. Company insiders own 0.20% of the company’s stock.

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.