Tandem Investment Advisors Inc. Grows Position in Automatic Data Processing, Inc. $ADP

Tandem Investment Advisors Inc. raised its position in Automatic Data Processing, Inc. (NASDAQ:ADP) by 31.6% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 309,538 shares of the business services provider’s stock after acquiring an additional 74,303 shares during the quarter. Automatic Data Processing makes up about 3.1% of Tandem Investment Advisors Inc.’s holdings, making the stock its 17th biggest holding. Tandem Investment Advisors Inc. owned about 0.08% of Automatic Data Processing worth $90,849,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of ADP. Mid American Wealth Advisory Group Inc. purchased a new stake in shares of Automatic Data Processing during the 2nd quarter worth $26,000. Harbor Asset Planning Inc. acquired a new stake in Automatic Data Processing in the second quarter valued at $26,000. Howard Hughes Medical Institute purchased a new stake in Automatic Data Processing during the 2nd quarter worth about $27,000. Solstein Capital LLC purchased a new stake in Automatic Data Processing during the 2nd quarter worth about $28,000. Finally, Westside Investment Management Inc. boosted its position in shares of Automatic Data Processing by 80.0% during the 2nd quarter. Westside Investment Management Inc. now owns 90 shares of the business services provider’s stock worth $28,000 after acquiring an additional 40 shares in the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Stock Performance

NASDAQ ADP opened at $245.97 on Friday. The firm has a market cap of $99.48 billion, a P/E ratio of 23.65 and a beta of 0.86. Automatic Data Processing, Inc. has a 52-week low of $244.44 and a 52-week high of $329.93. The business’s 50-day moving average price is $258.49 and its 200 day moving average price is $278.33. The company has a quick ratio of 1.05, a current ratio of 1.03 and a debt-to-equity ratio of 0.62.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, topping analysts’ consensus estimates 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 period last year, the firm earned $2.35 EPS. The firm’s revenue for the quarter 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 research analysts expect that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing announced that its board has approved a stock repurchase plan on Wednesday, January 14th that allows the company to repurchase $6.00 billion in shares. This repurchase authorization allows the business services provider to repurchase up to 5.8% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Automatic Data Processing Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be given a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is 67.13%.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP Christopher D’ambrosio sold 543 shares of the company’s stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total transaction of $142,423.47. Following the completion of the transaction, the vice president owned 9,998 shares in the company, valued at approximately $2,622,375.42. This represents a 5.15% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP David Kwon sold 900 shares of the firm’s stock in a transaction on Tuesday, January 6th. The stock was sold at an average price of $260.00, for a total transaction of $234,000.00. Following the completion of the sale, the vice president owned 11,993 shares of the company’s stock, valued at $3,118,180. This trade represents a 6.98% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 2,249 shares of company stock worth $589,852 over the last three months. 0.20% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

ADP has been the topic of several research analyst reports. Morgan Stanley cut their target price on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research report on Thursday. Wells Fargo & Company cut their price objective on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a report on Thursday. Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Stifel Nicolaus dropped their target price on shares of Automatic Data Processing from $290.00 to $280.00 and set a “hold” rating on the stock in a research report on Thursday. Finally, JPMorgan Chase & Co. reduced their price target 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. Three investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $295.38.

Key Stories Impacting Automatic Data Processing

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

• Positive Sentiment: Q2 results beat expectations — EPS $2.62 vs. consensus ~$2.57 and revenue ~$5.36B, with revenue up ~6% YoY; management lifted revenue outlook. PR Newswire: ADP Q2 Results
• Positive Sentiment: Large $6 billion share buyback remains a near-term support catalyst by reducing share count and signaling management confidence. MarketBeat: Buyback Article
• Positive Sentiment: Product/innovation push — ADP launched new AI “ADP Assist” agents aimed at improving payroll/HR automation, which supports long-term revenue and margin expansion potential. PR Newswire: ADP AI Launch
• Neutral Sentiment: New coverage initiated at Cantor Fitzgerald — adds another sell-side voice but not yet a material catalyst. AmericanBankingNews: Coverage Initiated
• Negative Sentiment: Morgan Stanley lowered its price target from $311 to $274 and moved to an “equal weight” rating — one of several same?day cuts pressuring the stock. Benzinga: Morgan Stanley PT Cut
• Negative Sentiment: Citigroup cut its target from $303 to $265 and set a “neutral” rating — another immediate headwind for sentiment. Benzinga: Citigroup PT Cut
• Negative Sentiment: JPMorgan trimmed its target from $295 to $275 and holds an “underweight” stance — contributing to the selloff. Benzinga: JPMorgan PT Cut
• Negative Sentiment: Wells Fargo reduced its target to $262 and kept an “underweight” rating. Benzinga: Wells Fargo PT Cut TickerReport: Wells Fargo Note
• Negative Sentiment: Stifel trimmed its target from $290 to $280 and moved to a “hold” — part of a cluster of downgrades weighing on investor outlook. Benzinga: Stifel PT Cut

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.