Jensen Investment Management Inc. Decreases Stock Position in Automatic Data Processing, Inc. $ADP

Jensen Investment Management Inc. trimmed its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 26.7% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 940,786 shares of the business services provider’s stock after selling 342,778 shares during the quarter. Automatic Data Processing accounts for 3.4% of Jensen Investment Management Inc.’s holdings, making the stock its 12th largest holding. Jensen Investment Management Inc.’s holdings in Automatic Data Processing were worth $290,138,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds also recently bought and sold shares of the company. Nuveen LLC acquired a new position in shares of Automatic Data Processing during the first quarter worth about $661,771,000. Mackenzie Financial Corp raised its holdings in Automatic Data Processing by 128.1% in the first quarter. Mackenzie Financial Corp now owns 1,585,704 shares of the business services provider’s stock valued at $484,480,000 after acquiring an additional 890,440 shares in the last quarter. Ameriprise Financial Inc. lifted its stake in Automatic Data Processing by 15.7% in the first quarter. Ameriprise Financial Inc. now owns 4,431,478 shares of the business services provider’s stock worth $1,348,805,000 after acquiring an additional 601,400 shares during the last quarter. Goldman Sachs Group Inc. grew its holdings in Automatic Data Processing by 22.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 3,059,100 shares of the business services provider’s stock worth $934,647,000 after acquiring an additional 564,187 shares in the last quarter. Finally, Geode Capital Management LLC increased its position in shares of Automatic Data Processing by 3.1% in the 2nd quarter. Geode Capital Management LLC now owns 11,388,935 shares of the business services provider’s stock valued at $3,511,698,000 after purchasing an additional 345,798 shares during the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.

Insider Transactions at Automatic Data Processing

In other news, VP David Foskett sold 1,373 shares of the stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total transaction of $407,190.61. Following the completion of the sale, the vice president owned 11,781 shares in the company, valued at approximately $3,493,891.17. This represents a 10.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Don Mcguire sold 13,599 shares of the company’s stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total value of $4,033,055.43. Following the sale, the vice president directly owned 17,684 shares of the company’s stock, valued at approximately $5,244,543.88. This represents a 43.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 52,516 shares of company stock worth $15,632,410 over the last 90 days. Company insiders own 0.20% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on ADP shares. JPMorgan Chase & Co. reduced their price objective on shares of Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a report on Thursday, October 30th. Weiss Ratings restated a “buy (b-)” rating on shares of Automatic Data Processing in a research note on Thursday. Dbs Bank raised Automatic Data Processing to a “hold” rating in a report on Thursday, August 21st. Morgan Stanley increased their price objective on Automatic Data Processing from $310.00 to $311.00 and gave the company an “equal weight” rating in a report on Thursday, July 31st. Finally, UBS Group cut their target price on Automatic Data Processing from $315.00 to $290.00 and set a “neutral” rating on the stock in a research report on Wednesday, September 17th. Three research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Automatic Data Processing has a consensus rating of “Hold” and an average price target of $312.67.

Automatic Data Processing Stock Down 0.6%

Automatic Data Processing stock opened at $253.09 on Friday. Automatic Data Processing, Inc. has a fifty-two week low of $249.68 and a fifty-two week high of $329.93. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.05 and a current ratio of 1.05. The company has a market capitalization of $102.36 billion, a P/E ratio of 24.98, a PEG ratio of 2.39 and a beta of 0.86. The stock has a 50-day simple moving average of $280.33 and a 200-day simple moving average of $298.65.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, October 29th. The business services provider reported $2.49 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.44 by $0.05. The firm had revenue of $5.18 billion for the quarter, compared to the consensus estimate of $5.14 billion. Automatic Data Processing had a return on equity of 70.63% and a net margin of 19.79%.The firm’s quarterly revenue was up 7.1% compared to the same quarter last year. During the same quarter last year, the business posted $2.33 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Equities research analysts expect that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 1st. Stockholders of record on Friday, December 12th will be issued a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Friday, December 12th. This is a positive change from Automatic Data Processing’s previous quarterly dividend of $1.54. Automatic Data Processing’s dividend payout ratio is presently 67.13%.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.