Jefferies Financial Group Inc. Makes New Investment in Automatic Data Processing, Inc. $ADP

Jefferies Financial Group Inc. purchased a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP) in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 9,521 shares of the business services provider’s stock, valued at approximately $2,794,000.

A number of other large investors have also made changes to their positions in the company. PGIM Custom Harvest LLC grew its stake in Automatic Data Processing by 4.9% in the second quarter. PGIM Custom Harvest LLC now owns 722 shares of the business services provider’s stock valued at $223,000 after acquiring an additional 34 shares during the period. Heritage Wealth Management Inc. lifted its holdings in shares of Automatic Data Processing by 1.1% during the 2nd quarter. Heritage Wealth Management Inc. now owns 3,340 shares of the business services provider’s stock valued at $1,030,000 after purchasing an additional 35 shares in the last quarter. Fairvoy Private Wealth LLC grew its position in shares of Automatic Data Processing by 4.2% in the 3rd quarter. Fairvoy Private Wealth LLC now owns 863 shares of the business services provider’s stock valued at $253,000 after purchasing an additional 35 shares during the period. Wealthspire Advisors LLC increased its stake in Automatic Data Processing by 0.4% during the 2nd quarter. Wealthspire Advisors LLC now owns 9,335 shares of the business services provider’s stock worth $2,879,000 after purchasing an additional 36 shares in the last quarter. Finally, Central Pacific Bank Trust Division increased its stake in Automatic Data Processing by 4.3% during the 3rd quarter. Central Pacific Bank Trust Division now owns 889 shares of the business services provider’s stock worth $261,000 after purchasing an additional 37 shares in the last quarter. Institutional investors own 80.03% of the company’s stock.

Analysts Set New Price Targets

A number of research analysts have weighed in on ADP shares. Stifel Nicolaus cut their price target 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, February 9th. Wells Fargo & Company lowered their price objective on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Cantor Fitzgerald assumed 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 on the stock. JPMorgan Chase & Co. cut their price objective on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating on the stock in a research report on Thursday, January 29th. Finally, Jefferies Financial Group reiterated an “underperform” rating and set a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. Two investment 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. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $290.00.

Automatic Data Processing Price Performance

Shares of NASDAQ ADP opened at $217.37 on Wednesday. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03. The business has a 50-day moving average of $237.35 and a 200-day moving average of $261.62. The stock has a market capitalization of $87.52 billion, a price-to-earnings ratio of 20.90 and a beta of 0.86. Automatic Data Processing, Inc. has a fifty-two week low of $203.26 and a fifty-two week high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, topping 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 business had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. During the same quarter in the prior year, the company posted $2.35 earnings per share. Automatic Data Processing’s 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. As a group, sell-side analysts predict that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

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 issued a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s payout ratio is presently 65.38%.

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

Insider Activity

In other news, VP David Foskett sold 266 shares of the business’s stock in a transaction dated Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction of $63,042.00. Following the transaction, the vice president directly owned 10,954 shares in the company, valued at $2,596,098. The trade was a 2.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP David Kwon sold 806 shares of the company’s stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $264.80, for a total transaction of $213,428.80. Following the completion of the sale, the vice president directly owned 11,187 shares in the company, valued at approximately $2,962,317.60. The trade was a 6.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 3,515 shares of company stock valued at $887,074. 0.20% of the stock is owned by insiders.

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.