Fayez Sarofim & Co Purchases 15,383 Shares of Automatic Data Processing, Inc. $ADP

Fayez Sarofim & Co raised its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 1.2% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,352,576 shares of the business services provider’s stock after acquiring an additional 15,383 shares during the period. Fayez Sarofim & Co’s holdings in Automatic Data Processing were worth $396,981,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Vanguard Group Inc. increased its position in Automatic Data Processing by 0.9% in the third quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider’s stock worth $12,235,907,000 after purchasing an additional 389,451 shares during the last quarter. State Street Corp raised its stake in Automatic Data Processing by 1.0% during the second quarter. State Street Corp now owns 18,782,407 shares of the business services provider’s stock valued at $5,820,445,000 after purchasing an additional 187,415 shares in the last quarter. Capital Research Global Investors lifted its position in Automatic Data Processing by 1.5% during the third quarter. Capital Research Global Investors now owns 8,021,194 shares of the business services provider’s stock valued at $2,354,220,000 after purchasing an additional 116,074 shares during the last quarter. Wellington Management Group LLP lifted its position in Automatic Data Processing by 47.8% during the third quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider’s stock valued at $2,004,691,000 after purchasing an additional 2,208,927 shares during the last quarter. Finally, Invesco Ltd. grew its stake in shares of Automatic Data Processing by 5.7% in the 3rd quarter. Invesco Ltd. now owns 4,837,993 shares of the business services provider’s stock worth $1,419,951,000 after buying an additional 261,312 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other news, VP Christopher D’ambrosio sold 543 shares of the stock in a transaction that occurred on Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total value of $142,423.47. Following the sale, the vice president directly owned 9,998 shares in the company, valued at approximately $2,622,375.42. This represents a 5.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Brian L. Michaud sold 1,000 shares of the firm’s stock in a transaction that occurred 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 sale, the vice president directly owned 15,310 shares of the company’s stock, valued at $3,585,295.80. This represents a 6.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 3,515 shares of company stock worth $887,074 over the last three months. 0.20% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

A number of analysts have recently weighed in on ADP shares. Citigroup reduced 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 report on Thursday, January 29th. Cantor Fitzgerald began coverage on Automatic Data Processing in a research report on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 price target for the company. Jefferies Financial Group reissued an “underperform” rating and set a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Wells Fargo & Company decreased 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. Finally, Morgan Stanley lowered their price objective on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research note on Thursday, January 29th. Two analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $290.00.

Automatic Data Processing Trading Up 0.5%

Shares of ADP opened at $208.52 on Monday. Automatic Data Processing, Inc. has a twelve month low of $203.26 and a twelve month high of $329.93. The company has a market cap of $83.96 billion, a P/E ratio of 20.05 and a beta of 0.86. 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’s fifty day simple moving average is $234.58 and its 200-day simple moving average is $259.63.

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

Automatic Data Processing announced that its board has authorized a share repurchase program on Wednesday, January 14th that allows the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization allows the business services provider to buy up to 5.8% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be paid a $1.70 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $6.80 annualized dividend and a yield of 3.3%. Automatic Data Processing’s dividend payout ratio (DPR) is presently 65.38%.

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.