Insider Selling: Automatic Data Processing (NASDAQ:ADP) CEO Sells $8,373,927.10 in Stock

Automatic Data Processing, Inc. (NASDAQ:ADP) CEO Maria Black sold 29,810 shares of Automatic Data Processing stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $280.91, for a total value of $8,373,927.10. Following the completion of the sale, the chief executive officer directly owned 80,624 shares of the company’s stock, valued at approximately $22,648,087.84. This trade represents a 26.99% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Automatic Data Processing Stock Performance

Automatic Data Processing stock traded up $2.37 during midday trading on Thursday, reaching $283.53. The stock had a trading volume of 2,206,926 shares, compared to its average volume of 3,007,663. The firm has a market capitalization of $112.64 billion, a PE ratio of 25.92, a P/E/G ratio of 2.57 and a beta of 0.82. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $302.68. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.82. The firm’s 50-day moving average price is $259.94 and its 200 day moving average price is $229.37.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, topping analysts’ consensus estimates of $2.59 by $0.05. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The firm had revenue of $5.47 billion during the quarter, compared to analyst estimates of $5.44 billion. During the same quarter last year, the business earned $2.26 earnings per share. The company’s quarterly revenue was up 6.8% on a year-over-year basis. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. As a group, research analysts predict that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th will be issued a $1.70 dividend. The ex-dividend date of this dividend is Friday, September 11th. This represents a $6.80 annualized dividend and a yield of 2.4%. Automatic Data Processing’s dividend payout ratio (DPR) is 62.16%.

Analysts Set New Price Targets

Several research firms have issued reports on ADP. Cantor Fitzgerald increased their target price on Automatic Data Processing from $295.00 to $310.00 and gave the stock an “overweight” rating in a research report on Monday, August 3rd. UBS Group boosted their price objective on Automatic Data Processing from $260.00 to $270.00 and gave the company a “neutral” rating in a research note on Wednesday, July 22nd. Morgan Stanley increased their price objective on Automatic Data Processing from $240.00 to $286.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. Guggenheim raised their target price on Automatic Data Processing from $270.00 to $300.00 and gave the stock a “buy” rating in a research note on Thursday, July 30th. Finally, TD Cowen lifted their target price on Automatic Data Processing from $216.00 to $223.00 and gave the company a “hold” rating in a report on Monday, July 6th. Three research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Automatic Data Processing presently has a consensus rating of “Hold” and a consensus price target of $273.50.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Imprint Wealth LLC bought a new position in shares of Automatic Data Processing during the 3rd quarter valued at about $25,000. Cornerstone Financial Management LLC bought a new stake in Automatic Data Processing in the 4th quarter worth approximately $26,000. Bard Associates Inc. purchased a new stake in Automatic Data Processing in the fourth quarter worth approximately $28,000. Prosperity Bancshares Inc bought a new position in Automatic Data Processing during the fourth quarter valued at approximately $33,000. Finally, Wilkerson Advisory Group LLC bought a new position in Automatic Data Processing during the fourth quarter valued at approximately $36,000. Institutional investors own 80.03% of the company’s stock.

Automatic Data Processing News Summary

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Defensive dividend appeal: ADP was highlighted as a high-quality dividend stock with more than 25 consecutive years of annual dividend increases. Its recurring payroll and human-resources revenue model may attract investors seeking stability and income. 3 of Wall Street’s Safest High-Yield Dividend Stocks
• Positive Sentiment: Potentially supportive rate expectations: August private-sector hiring was weaker than anticipated, which contributed to a softer U.S. dollar and could reinforce expectations for Federal Reserve easing. Lower rates can support valuation multiples for large, cash-generative companies such as ADP. U.S. Dollar Slides Amid Softer ADP Data
• Neutral Sentiment: ADP’s August report: The company’s National Employment Report showed private-sector employment increased by 38,000 jobs, while base pay rose 3.2% and gross pay increased 4.7%. The report strengthens ADP’s visibility as a labor-market data provider but is not a direct measure of its payroll revenue. ADP National Employment Report
• Neutral Sentiment: Analyst stance remains cautious: Coverage says ADP has lagged the broader market and technology sector over the past year, with analysts maintaining a generally neutral outlook. Another analysis described the shares as approximately 1% undervalued based on fresh labor data, suggesting limited near-term valuation upside. Is ADP Underperforming the Technology Sector?
• Negative Sentiment: Hiring missed expectations: The 38,000 increase in private payrolls fell short of the 47,000 forecast and the prior month’s 44,000 gain. Continued labor-market cooling could eventually slow demand for ADP’s employer services and keeps the company’s macro-sensitive investment narrative under pressure. ADP Brings 38K Private-Sector Jobs in August
• Negative Sentiment: Broader market risks: Weekly jobless claims increased marginally, while bond yields and oil prices rose amid mixed premarket trading and scheduled Federal Reserve speakers. Higher yields can pressure the valuation of dividend-oriented stocks, offsetting some benefit from weaker-rate expectations. Weekly Jobless Claims Increase Marginally

About Automatic Data Processing

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.