Automatic Data Processing (NASDAQ:ADP) VP David Kwon Sells 2,414 Shares of Stock

Automatic Data Processing, Inc. (NASDAQ:ADP) VP David Kwon sold 2,414 shares of the stock in a transaction on Thursday, July 30th. The stock was sold at an average price of $265.62, for a total value of $641,206.68. Following the transaction, the vice president directly owned 9,660 shares in the company, valued at approximately $2,565,889.20. This represents a 19.99% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Automatic Data Processing Price Performance

Shares of NASDAQ:ADP opened at $266.46 on Friday. The company has a market cap of $106.51 billion, a P/E ratio of 24.36 and a beta of 0.83. The business has a fifty day simple moving average of $235.88 and a 200-day simple moving average of $224.60. Automatic Data Processing, Inc. has a 52 week low of $188.16 and a 52 week high of $315.26. The company has a quick ratio of 1.04, a current ratio of 1.05 and a debt-to-equity ratio of 0.82.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, topping the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The firm had revenue of $5.47 billion for the quarter, compared to the consensus estimate of $5.44 billion. During the same period in the prior year, the business posted $2.26 earnings per share. The firm’s revenue for the quarter was up 6.8% compared to the same quarter last year. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Equities research analysts forecast that Automatic Data Processing, Inc. will post 12.24 EPS for the current year.

More Automatic Data Processing News

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

• Positive Sentiment: Quarterly results exceeded expectations. ADP reported adjusted earnings of $2.64 per share versus the $2.59 consensus estimate, while revenue of $5.47 billion topped estimates of $5.44 billion and increased 6.8% year over year. Management’s fiscal 2027 EPS guidance of $12.12–$12.34 also supports the bullish outlook. ADP’s Q2 CY2026 sales beat estimates
• Positive Sentiment: Analysts raised price targets following the earnings report. Guggenheim increased its target to $300 and upgraded ADP to “buy.” BMO Capital Markets raised its target to $305, while Citigroup, Morgan Stanley, Stifel and Wells Fargo lifted targets to $287, $286, $285 and $283, respectively. These revisions indicate improved confidence in ADP’s earnings outlook. BMO Capital Markets increases ADP price target
• Positive Sentiment: A new buy recommendation adds further support. Commentary following the earnings release described ADP’s valuation as reasonable after its strong long-term performance and maintained a constructive view of the stock. Automatic Data Processing new buy recommendation
• Neutral Sentiment: Most analysts remain cautious despite higher targets. Citigroup, Morgan Stanley, Stifel and Wells Fargo maintained neutral, equal-weight or hold ratings, suggesting that much of the earnings improvement may already be reflected in ADP’s valuation.
• Negative Sentiment: An executive sold shares. Vice President David Kwon sold 2,414 shares for approximately $641,207, reducing his ownership by about 20%. The transaction was conducted under a pre-arranged Rule 10b5-1 plan, which reduces its significance as a discretionary bearish signal. SEC insider transaction filing

Institutional Trading of Automatic Data Processing

Several institutional investors have recently added to or reduced their stakes in ADP. Northcape Wealth Management LLC boosted its holdings in shares of Automatic Data Processing by 0.6% in the 4th quarter. Northcape Wealth Management LLC now owns 6,577 shares of the business services provider’s stock valued at $1,692,000 after buying an additional 39 shares during the period. Rathbones Group PLC grew its position in shares of Automatic Data Processing by 1.1% during the 4th quarter. Rathbones Group PLC now owns 4,027 shares of the business services provider’s stock valued at $1,036,000 after buying an additional 42 shares during the last quarter. Zullo Investment Group Inc. raised its stake in Automatic Data Processing by 2.3% during the fourth quarter. Zullo Investment Group Inc. now owns 1,885 shares of the business services provider’s stock worth $485,000 after acquiring an additional 42 shares during the period. Trilogy Capital Inc. raised its stake in Automatic Data Processing by 5.3% during the fourth quarter. Trilogy Capital Inc. now owns 850 shares of the business services provider’s stock worth $219,000 after acquiring an additional 43 shares during the period. Finally, Blossom Wealth Management lifted its holdings in Automatic Data Processing by 3.1% in the fourth quarter. Blossom Wealth Management now owns 1,470 shares of the business services provider’s stock worth $378,000 after acquiring an additional 44 shares during the last quarter. Institutional investors own 80.03% of the company’s stock.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the company. Weiss Ratings raised Automatic Data Processing from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, July 21st. Argus reduced their price target on Automatic Data Processing from $300.00 to $240.00 and set a “buy” rating for the company in a report on Tuesday, May 5th. Jefferies Financial Group lowered their price objective on Automatic Data Processing from $230.00 to $190.00 in a research note on Thursday, April 30th. Mizuho dropped their price objective on Automatic Data Processing from $332.00 to $305.00 in a report on Thursday, April 30th. Finally, Citigroup lifted their price objective on Automatic Data Processing from $230.00 to $287.00 and gave the stock a “neutral” rating in a report on Thursday. Three equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $272.43.

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.