Principal Financial Group Inc. Sells 18,623 Shares of Automatic Data Processing, Inc. $ADP

Principal Financial Group Inc. reduced its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 3.7% in the third quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 487,424 shares of the business services provider’s stock after selling 18,623 shares during the quarter. Principal Financial Group Inc. owned 0.12% of Automatic Data Processing worth $143,059,000 at the end of the most recent quarter.

Several other large investors have also bought and sold shares of the company. Laurel Wealth Advisors LLC increased its position in shares of 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 stake in Automatic Data Processing during the 2nd quarter valued at $696,841,000. Amundi boosted its stake in Automatic Data Processing by 24.9% during 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 last quarter. JPMorgan Chase & Co. increased its holdings in shares of Automatic Data Processing by 26.6% in the 2nd quarter. JPMorgan Chase & Co. now owns 2,812,637 shares of the business services provider’s stock worth $867,445,000 after purchasing an additional 591,800 shares in the last quarter. Finally, Invesco Ltd. raised its stake in shares of Automatic Data Processing by 13.5% in the second quarter. Invesco Ltd. now owns 4,576,681 shares of the business services provider’s stock worth $1,411,449,000 after purchasing an additional 544,968 shares during the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Stock Performance

ADP opened at $247.56 on Tuesday. The company’s 50 day moving average is $258.31 and its 200 day moving average is $277.25. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. The company has a market cap of $99.68 billion, a price-to-earnings ratio of 23.80 and a beta of 0.85. Automatic Data Processing, Inc. has a 12-month low of $243.68 and a 12-month high of $329.93.

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

Automatic Data Processing declared that its board has authorized a share 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 stock through open market purchases. Stock buyback plans are often an indication that the company’s board believes its shares are undervalued.

Automatic Data Processing Dividend Announcement

The business also recently announced 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 annualized dividend and a yield of 2.7%. Automatic Data Processing’s payout ratio is 65.38%.

Insider Activity

In other Automatic Data Processing news, VP Christopher D’ambrosio sold 543 shares of the business’s stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total transaction of $142,423.47. Following the completion of the sale, the vice president 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP David Kwon sold 806 shares of the firm’s stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $264.80, for a total value of $213,428.80. Following the completion of the transaction, the vice president directly owned 11,187 shares in the company, valued at $2,962,317.60. This trade represents a 6.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 2,249 shares of company stock valued at $589,852 in the last three months. 0.20% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several equities research analysts recently commented on ADP shares. Wells Fargo & Company dropped their price objective on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a research report on Thursday, January 29th. Cantor Fitzgerald started coverage on shares of Automatic Data Processing in a report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 price objective for the company. Morgan Stanley cut their target price on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research report on Thursday, January 29th. JPMorgan Chase & Co. decreased their target price on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research note on Thursday, January 29th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Two equities 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’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $290.83.

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.