Invesco Ltd. Increases Stake in Automatic Data Processing, Inc. $ADP

Invesco Ltd. boosted its position in Automatic Data Processing, Inc. (NASDAQ:ADP) by 5.7% during the third quarter, according to its most recent 13F filing with the SEC. The firm owned 4,837,993 shares of the business services provider’s stock after acquiring an additional 261,312 shares during the period. Invesco Ltd.’s holdings in Automatic Data Processing were worth $1,419,951,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in the business. Exchange Traded Concepts LLC boosted its holdings in shares of Automatic Data Processing by 141.5% in the third quarter. Exchange Traded Concepts LLC now owns 13,283 shares of the business services provider’s stock worth $3,899,000 after acquiring an additional 7,782 shares during the period. Mitchell Capital Management Co. grew its position in shares of Automatic Data Processing by 325.0% in the third quarter. Mitchell Capital Management Co. now owns 6,800 shares of the business services provider’s stock valued at $1,996,000 after purchasing an additional 5,200 shares in the last quarter. Atlantic Union Bankshares Corp raised its stake in shares of Automatic Data Processing by 136.0% during the 3rd quarter. Atlantic Union Bankshares Corp now owns 47,974 shares of the business services provider’s stock valued at $14,080,000 after purchasing an additional 27,644 shares during the period. CIBC Asset Management Inc raised its stake in shares of Automatic Data Processing by 2.6% during the 3rd quarter. CIBC Asset Management Inc now owns 183,561 shares of the business services provider’s stock valued at $53,875,000 after purchasing an additional 4,720 shares during the period. Finally, Thrivent Financial for Lutherans lifted its holdings in Automatic Data Processing by 18.4% during the 3rd quarter. Thrivent Financial for Lutherans now owns 138,215 shares of the business services provider’s stock worth $40,566,000 after purchasing an additional 21,444 shares in the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Automatic Data Processing

In other news, VP David Kwon sold 806 shares of the stock in a transaction on Monday, January 12th. The shares were sold at an average price of $264.80, for a total value of $213,428.80. Following the transaction, the vice president owned 11,187 shares of the company’s stock, valued at $2,962,317.60. This represents a 6.72% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Brian L. Michaud sold 1,000 shares of the firm’s stock in a transaction on Friday, February 6th. The shares were sold at an average price of $234.18, for a total transaction of $234,180.00. Following the sale, the vice president owned 15,310 shares in the company, valued at approximately $3,585,295.80. This trade represents a 6.13% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 3,515 shares of company stock valued at $887,074. Company insiders own 0.20% of the company’s stock.

Automatic Data Processing Price Performance

Automatic Data Processing stock opened at $207.45 on Friday. The stock has a market cap of $83.53 billion, a price-to-earnings ratio of 19.95 and a beta of 0.86. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. The business has a 50-day simple moving average of $235.47 and a 200 day simple moving average of $260.90. Automatic Data Processing, Inc. has a 52 week low of $203.26 and a 52 week 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, beating the consensus estimate of $2.57 by $0.05. The firm had revenue of $5.36 billion for the quarter, compared to analysts’ expectations of $5.34 billion. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The company’s revenue was up 6.2% compared to the same quarter last year. During the same quarter last year, the firm posted $2.35 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, research analysts forecast that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing announced that its board has authorized a share buyback 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 reacquire up to 5.8% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s leadership believes its stock is 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 paid a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is currently 65.38%.

Analysts Set New Price Targets

A number of research analysts have weighed in on ADP shares. Cantor Fitzgerald initiated coverage on Automatic Data Processing in a report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price for the company. Stifel Nicolaus lowered 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 report on Monday, February 9th. Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Citigroup reduced their price objective on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a research note on Thursday, January 29th. Finally, Morgan Stanley decreased their target price on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a report on Thursday, January 29th. Two equities 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 stock. According to MarketBeat, Automatic Data Processing presently has an average rating of “Hold” and an average price target of $290.00.

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.