Shell Asset Management Co. Lowers Holdings in Automatic Data Processing, Inc. $ADP

Shell Asset Management Co. lowered its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 56.8% in the third quarter, according to its most recent 13F filing with the SEC. The fund owned 11,719 shares of the business services provider’s stock after selling 15,388 shares during the period. Shell Asset Management Co.’s holdings in Automatic Data Processing were worth $3,440,000 at the end of the most recent quarter.

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

Automatic Data Processing Stock Performance

NASDAQ ADP opened at $212.11 on Friday. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03. Automatic Data Processing, Inc. has a 1-year low of $208.62 and a 1-year high of $329.93. The company has a market cap of $85.40 billion, a PE ratio of 20.40 and a beta of 0.85. The stock’s 50 day simple moving average is $252.56 and its 200-day simple moving average is $272.42.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, beating the consensus estimate of $2.57 by $0.05. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The firm had revenue of $5.36 billion during the quarter, compared to the consensus estimate of $5.34 billion. During the same period in the prior year, the company earned $2.35 EPS. The firm’s revenue 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, equities research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing declared that its Board of Directors has authorized 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 buy up to 5.8% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s management believes its stock is undervalued.

Automatic Data Processing Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be given 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 yield of 3.2%. Automatic Data Processing’s payout ratio is presently 65.38%.

Insider Buying and Selling at Automatic Data Processing

In related news, VP David Foskett sold 266 shares of Automatic Data Processing stock in a transaction that occurred 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 transaction, the vice president owned 10,954 shares in the company, valued at approximately $2,596,098. This trade represents a 2.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Brian L. Michaud sold 1,000 shares of the business’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $234.18, for a total value of $234,180.00. Following the transaction, the vice president directly owned 15,310 shares in the company, valued at $3,585,295.80. This trade represents a 6.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 3,515 shares of company stock worth $887,074 in the last 90 days. 0.20% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Citigroup lowered their target price on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research note on Thursday, January 29th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Stifel Nicolaus cut their price objective on 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 reiterated an “underperform” rating and set a $230.00 target price (down previously from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Finally, JPMorgan Chase & Co. cut their price target on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a report on Thursday, January 29th. Two research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Automatic Data Processing has an average rating of “Hold” and a consensus target price of $290.00.

Automatic Data Processing 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.