Rakuten Investment Management Inc. Makes New $5.54 Million Investment in Automatic Data Processing, Inc. $ADP

Rakuten Investment Management Inc. acquired a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP) in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 18,884 shares of the business services provider’s stock, valued at approximately $5,542,000.

A number of other institutional investors have also made changes to their positions in ADP. Vanguard Group Inc. boosted its stake in shares of Automatic Data Processing by 0.9% in the second quarter. Vanguard Group Inc. now owns 41,300,182 shares of the business services provider’s stock valued at $12,736,976,000 after purchasing an additional 350,298 shares during the period. State Street Corp lifted its holdings in Automatic Data Processing by 1.0% in the 2nd quarter. State Street Corp now owns 18,782,407 shares of the business services provider’s stock worth $5,820,445,000 after buying an additional 187,415 shares in the last quarter. Geode Capital Management LLC lifted its holdings in 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 worth $3,511,698,000 after buying an additional 345,798 shares in the last quarter. Laurel Wealth Advisors LLC boosted its position in Automatic Data Processing by 30,110.7% in 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 buying an additional 4,653,304 shares during the last quarter. Finally, Invesco Ltd. grew its stake in shares of 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 acquiring an additional 544,968 shares in the last quarter. 80.03% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Automatic Data Processing

In other news, VP Christopher D’ambrosio sold 543 shares of Automatic Data Processing stock in a transaction dated 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 approximately $2,622,375.42. The trade was a 5.15% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, VP David Kwon sold 900 shares of the stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $260.00, for a total transaction of $234,000.00. Following the sale, the vice president owned 11,993 shares in the company, valued at approximately $3,118,180. This trade represents a 6.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 2,249 shares of company stock worth $589,852. Insiders own 0.20% of the company’s stock.

Automatic Data Processing Trading Up 1.1%

NASDAQ:ADP opened at $259.86 on Friday. The company has a market cap of $105.10 billion, a PE ratio of 25.65 and a beta of 0.86. The business’s 50 day moving average is $258.21 and its two-hundred day moving average is $280.17. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.62. Automatic Data Processing, Inc. has a 52 week low of $247.18 and a 52 week high of $329.93.

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

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

Automatic Data Processing Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be issued a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s dividend payout ratio is 67.13%.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. JPMorgan Chase & Co. dropped their target price on Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a research report on Thursday, October 30th. Wells Fargo & Company dropped their price objective on Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating on the stock in a report on Thursday, October 30th. Jefferies Financial Group reaffirmed an “underperform” rating and issued a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Finally, Citigroup initiated coverage on shares of Automatic Data Processing in a research note on Thursday, October 23rd. They issued a “neutral” rating and a $303.00 price target for the company. Two analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $306.42.

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.