Pensionfund Sabic Takes Position in Automatic Data Processing, Inc. $ADP

Pensionfund Sabic bought a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) in the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor bought 6,600 shares of the business services provider’s stock, valued at approximately $1,698,000.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the business. Imprint Wealth LLC purchased a new stake in Automatic Data Processing in the 3rd quarter worth $25,000. Howard Hughes Medical Institute purchased a new position in Automatic Data Processing during the second quarter valued at $27,000. TruNorth Capital Management LLC purchased a new position in Automatic Data Processing during the third quarter valued at $28,000. Cloud Capital Management LLC acquired a new stake in shares of Automatic Data Processing in the third quarter valued at about $29,000. Finally, Y.D. More Investments Ltd purchased a new stake in shares of Automatic Data Processing during the third quarter worth about $32,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Stock Performance

Shares of ADP stock opened at $204.89 on Wednesday. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03. The firm has a market cap of $82.50 billion, a P/E ratio of 19.70 and a beta of 0.86. The firm’s 50 day moving average price is $227.18 and its 200-day moving average price is $255.08. Automatic Data Processing, Inc. has a one year low of $203.26 and a one year high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last posted its 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 during the quarter, compared to the consensus estimate of $5.34 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The firm’s revenue for the quarter was up 6.2% on a year-over-year basis. During the same quarter last year, the firm earned $2.35 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, equities research analysts predict that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be paid a $1.70 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.3%. Automatic Data Processing’s payout ratio is presently 65.38%.

Automatic Data Processing declared that its Board of Directors has authorized a share 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 buy up to 5.8% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the company. Wells Fargo & Company lowered their price target on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a research note on Thursday, January 29th. Morgan Stanley lowered their target price on 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. Jefferies Financial Group restated an “underperform” rating and issued a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Finally, Citigroup reduced their price objective on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research report on Thursday, January 29th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $288.46.

Insider Transactions at Automatic Data Processing

In related news, VP David Kwon sold 806 shares of the business’s stock in a transaction on Monday, January 12th. The stock was sold at an average price of $264.80, for a total value of $213,428.80. Following the sale, the vice president owned 11,187 shares in the company, valued at approximately $2,962,317.60. The trade was a 6.72% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $234.18, for a total value of $234,180.00. Following the transaction, the vice president directly owned 15,310 shares in the company, valued at approximately $3,585,295.80. The trade was a 6.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 4,058 shares of company stock worth $1,000,263 over the last quarter. 0.20% of the stock is owned by corporate insiders.

Automatic Data Processing 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.