Automatic Data Processing (NASDAQ:ADP) Hits New 52-Week Low on Insider Selling

Automatic Data Processing, Inc. (NASDAQ:ADP)’s stock price hit a new 52-week low on Tuesday after an insider sold shares in the company. The stock traded as low as $224.93 and last traded at $226.63, with a volume of 3376471 shares traded. The stock had previously closed at $231.36.

Specifically, VP David Foskett sold 266 shares of Automatic Data Processing stock in a transaction dated Thursday, February 5th. The stock was sold at an average price of $237.00, for a total value of $63,042.00. Following the transaction, the vice president owned 10,954 shares in the company, valued at $2,596,098. The trade was a 2.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Brian L. Michaud sold 1,000 shares of the stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction of $234,180.00. Following the completion of the transaction, the vice president directly owned 15,310 shares of the company’s stock, valued at $3,585,295.80. This trade represents a 6.13% decrease in their position. The SEC filing for this sale provides additional information.

Analysts Set New Price Targets

ADP has been the subject of a number of research analyst reports. JPMorgan Chase & Co. lowered their price objective on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Stifel Nicolaus decreased their target price on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a research note on Monday. Wells Fargo & Company lowered their price target on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a report on Thursday, January 29th. Morgan Stanley dropped their price target 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. Finally, Cantor Fitzgerald assumed coverage on Automatic Data Processing in a research report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 price objective on the stock. Two research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Automatic Data Processing has an average rating of “Hold” and a consensus price target of $290.00.

More Automatic Data Processing News

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

• Positive Sentiment: ADP’s weekly National Employment Report showed U.S. private employers added about 6,500 jobs per week (four weeks ending Jan. 24), supporting continued demand for payroll and HCM services. This macro data can be constructive for ADP’s revenue mix and recurring revenue stream. ADP National Employment Report Preliminary Estimate for January 24, 2026
• Positive Sentiment: ADP’s most recent quarterly results beat on EPS and revenue, and management provided FY2026 EPS guidance in the ~10.09–11.01 range — a sign of continued profitable growth and clear near‑term visibility. That underlying beat/guidance supports longer‑term cash generation.
• Positive Sentiment: The board has authorized a large buyback (≈$6.0B) and ADP maintains a healthy dividend (quarterly $1.70 / ~3% yield), which support shareholder returns and can provide backstop to the share price.
• Neutral Sentiment: Large institutional ownership and recent reported position changes (MarketBeat summary) show ADP remains a widely held, index/ETF‑embedded large cap — this magnifies flows but also dampens volatility from retail noise.
• Negative Sentiment: Short interest rose in late January to ~8.9M shares (about 2.2% of float) with a ~3.2 days-to-cover — increased shorting can pressure the stock if negative catalysts continue or if sentiment weakens. (Note: a February short-interest entry in the feed appears erroneous and should be treated with caution.)
• Negative Sentiment: Recent insider selling by senior VPs (small blocks: 266 and 1,000 shares reported) and headlines calling out larger insider reductions drew attention — while sizes are modest vs. total insider holdings, such disclosures can amplify near‑term investor caution. Insider Selling: Automatic Data Processing (NASDAQ:ADP) VP Sells 266 Shares of Stock
• Negative Sentiment: Stifel trimmed its price target (from $280 to $270) and maintains a hold — analyst downgrades/target cuts can exert downward pressure on sentiment and make the stock less attractive for momentum buyers. Benzinga

Automatic Data Processing Stock Performance

The firm has a market capitalization of $90.81 billion, a P/E ratio of 21.69 and a beta of 0.85. The company has a 50-day moving average of $255.39 and a 200-day moving average of $274.17. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62.

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

Automatic Data Processing Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be paid a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is currently 65.38%.

Automatic Data Processing declared that its Board of Directors has authorized a share repurchase program on Wednesday, January 14th that permits the company to buyback $6.00 billion in shares. This buyback authorization permits the business services provider to buy up to 5.8% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On Automatic Data Processing

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Laurel Wealth Advisors LLC raised its position in shares of 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 worth $1,439,845,000 after acquiring an additional 4,653,304 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its stake in Automatic Data Processing by 6,493.0% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider’s stock worth $892,120,000 after purchasing an additional 3,415,576 shares during the period. Norges Bank acquired a new stake in Automatic Data Processing during the fourth quarter worth approximately $721,738,000. Wellington Management Group LLP increased its holdings in Automatic Data Processing by 47.8% in the third quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider’s stock worth $2,004,691,000 after purchasing an additional 2,208,927 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. lifted its stake in Automatic Data Processing by 32.1% in the third quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 3,273,700 shares of the business services provider’s stock valued at $960,831,000 after buying an additional 796,379 shares during the period. Institutional investors and hedge funds own 80.03% of the company’s stock.

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.