Automatic Data Processing, Inc. $ADP Stock Position Lowered by Raleigh Capital Management Inc.

Raleigh Capital Management Inc. trimmed its position in Automatic Data Processing, Inc. (NASDAQ:ADP) by 87.8% during the third quarter, HoldingsChannel.com reports. The institutional investor owned 822 shares of the business services provider’s stock after selling 5,891 shares during the period. Raleigh Capital Management Inc.’s holdings in Automatic Data Processing were worth $212,000 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 bought and sold shares of the company. BlackRock Inc. purchased a new position in Automatic Data Processing during the 2nd quarter worth $8,097,229,000. Bank of America Corp DE purchased a new stake in shares of Automatic Data Processing in the second quarter valued at about $1,231,175,000. Deutsche Bank AG purchased a new stake in shares of Automatic Data Processing in the second quarter valued at about $994,937,000. Bank of New York Mellon Corp acquired a new position in shares of Automatic Data Processing during the second quarter worth about $725,513,000. Finally, Legal & General Group Plc acquired a new position in shares of Automatic Data Processing during the second quarter worth about $562,425,000. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Automatic Data Processing Stock Performance

Shares of ADP stock opened at $293.84 on Friday. The stock has a fifty day moving average price of $277.25 and a 200 day moving average price of $240.83. The stock has a market cap of $116.43 billion, a PE ratio of 26.05, a P/E/G ratio of 2.65 and a beta of 0.83. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $309.40. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.05 and a current ratio of 1.03.

Automatic Data Processing (NASDAQ:ADP) last posted its earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share for the quarter, beating the consensus estimate of $2.77 by $0.05. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. The company had revenue of $5.49 billion for the quarter, compared to analyst estimates of $5.48 billion. During the same quarter in the prior year, the company earned $2.49 earnings per share. Automatic Data Processing’s revenue was up 6.1% compared to the same quarter last year. Sell-side analysts forecast that Automatic Data Processing, Inc. will post 12.36 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Friday, September 11th were given a $1.70 dividend. The ex-dividend date was Friday, September 11th. This represents a $6.80 annualized dividend and a dividend yield of 2.3%. Automatic Data Processing’s payout ratio is currently 60.28%.

More Automatic Data Processing News

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

• Positive Sentiment: Raised fiscal 2027 outlook: ADP now forecasts 10%–12% growth in adjusted earnings per share and raised its outlook for client-funds interest revenue to $1.59 billion–$1.61 billion. The improved guidance is the clearest near-term catalyst for the stock. ADP forecasts fiscal 2027 adjusted EPS growth
• Positive Sentiment: Quarterly results exceeded expectations: ADP reported earnings of $2.82 per share versus the $2.77 consensus estimate, while revenue of $5.49 billion modestly topped forecasts and increased 6.1% year over year. Management also highlighted AI momentum during the earnings call. ADP fiscal 2027 first-quarter results
• Positive Sentiment: Some analysts see additional upside: Guggenheim reaffirmed a Buy rating with a $340 price target, while Stifel raised its target to $305. Jefferies also lifted its target, although it retained an Underperform rating. Guggenheim ADP rating
• Neutral Sentiment: Expansion in small-business payroll: ADP is broadening its reach among small-business customers, a move that could support long-term client and revenue growth but may require additional investment. ADP small-business payroll expansion
• Negative Sentiment: Valuation and analyst caution: Citi, Morgan Stanley, and RBC maintain neutral or equivalent ratings with targets around $288–$295, while Jefferies remains bearish. A Seeking Alpha analysis also argues that investors should not chase the rally despite ADP’s attractive dividend-growth record. ADP dividend growth and valuation analysis

Insider Buying and Selling at Automatic Data Processing

In related news, VP Joseph Desilva sold 631 shares of the stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $282.87, for a total value of $178,490.97. Following the sale, the vice president directly owned 18,824 shares of the company’s stock, valued at approximately $5,324,744.88. This represents a 3.24% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Maria Black sold 29,810 shares of the firm’s stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $280.91, for a total transaction of $8,373,927.10. Following the transaction, the chief executive officer owned 80,624 shares of the company’s stock, valued at $22,648,087.84. This trade represents a 26.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 31,359 shares of company stock valued at $8,809,422 over the last 90 days. 0.15% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

ADP has been the subject of a number of recent analyst reports. Stifel Nicolaus raised their price objective on shares of Automatic Data Processing from $285.00 to $305.00 and gave the company a “hold” rating in a research report on Thursday. Guggenheim reiterated a “buy” rating and set a $340.00 target price on shares of Automatic Data Processing in a research report on Thursday. Jefferies Financial Group boosted their target price on Automatic Data Processing from $225.00 to $250.00 and gave the stock an “underperform” rating in a research report on Wednesday. Royal Bank Of Canada reissued a “sector perform” rating and set a $290.00 target price on shares of Automatic Data Processing in a research note on Thursday. Finally, UBS Group raised their price target on Automatic Data Processing from $260.00 to $270.00 and gave the company a “neutral” rating in a report on Wednesday, July 22nd. Three equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Automatic Data Processing presently has a consensus rating of “Hold” and an average target price of $283.27.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (NASDAQ: ADP) is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.