Automatic Data Processing, Inc. $ADP Shares Purchased by Investment Partners LTD.

Investment Partners LTD. grew its holdings in Automatic Data Processing, Inc. (NASDAQ:ADP) by 46.8% in the third quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 10,250 shares of the business services provider’s stock after buying an additional 3,270 shares during the period. Investment Partners LTD.’s holdings in Automatic Data Processing were worth $2,645,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors also recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in Automatic Data Processing during the 2nd quarter valued at $8,097,229,000. Bank of America Corp DE purchased a new stake in Automatic Data Processing in the 2nd quarter worth about $1,231,175,000. Deutsche Bank AG purchased a new stake in shares of Automatic Data Processing in the second quarter worth approximately $994,937,000. Bank of New York Mellon Corp purchased a new stake in Automatic Data Processing in the second quarter worth $725,513,000. Finally, Legal & General Group Plc bought a new stake in shares of Automatic Data Processing during the second quarter valued at approximately $562,425,000. 80.03% of the stock is owned by institutional investors.

Automatic Data Processing Stock Up 2.7%

Shares of NASDAQ ADP opened at $293.84 on Friday. Automatic Data Processing, Inc. has a 12-month low of $188.16 and a 12-month high of $309.40. The stock’s fifty day simple moving average is $277.25 and its two-hundred day simple moving average is $240.83. The stock has a market capitalization of $116.43 billion, a PE ratio of 26.05, a price-to-earnings-growth ratio of 2.65 and a beta of 0.83. The company has a current ratio of 1.03, a quick ratio of 1.05 and a debt-to-equity ratio of 0.98.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, October 28th. The business services provider reported $2.82 EPS for the quarter, topping the consensus estimate of $2.77 by $0.05. The firm had revenue of $5.49 billion during the quarter, compared to analyst estimates of $5.48 billion. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. The business’s revenue for the quarter was up 6.1% compared to the same quarter last year. During the same period in the previous year, the company posted $2.49 EPS. As a group, analysts expect that Automatic Data Processing, Inc. will post 12.36 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

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

Insider Activity

In other Automatic Data Processing news, VP David Kwon sold 798 shares of the firm’s stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $280.00, for a total value of $223,440.00. Following the completion of the sale, the vice president directly owned 13,193 shares in the company, valued at $3,694,040. This trade represents a 5.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Joseph Desilva sold 631 shares of the business’s stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total value of $178,490.97. Following the transaction, the vice president owned 18,824 shares in the company, valued at approximately $5,324,744.88. This trade represents a 3.24% 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 in the last ninety days. 0.15% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

Several research analysts have commented on the company. UBS Group raised their price objective on Automatic Data Processing from $260.00 to $270.00 and gave the stock a “neutral” rating in a report on Wednesday, July 22nd. Weiss Ratings upgraded Automatic Data Processing from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, September 22nd. Guggenheim reissued a “buy” rating and set a $340.00 price target on shares of Automatic Data Processing in a research report on Thursday. Stifel Nicolaus raised their price target on Automatic Data Processing from $285.00 to $305.00 and gave the company a “hold” rating in a research note on Thursday. Finally, BMO Capital Markets raised their price target on Automatic Data Processing from $248.00 to $305.00 and gave the company a “market perform” rating in a research note on Wednesday, July 29th. Three analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $283.27.

Automatic Data Processing News Summary

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

Automatic Data Processing 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.