Automatic Data Processing, Inc. (NASDAQ:ADP – Get Free Report) VP David Kwon sold 2,414 shares of the stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $265.62, for a total transaction of $641,206.68. Following the sale, the vice president owned 9,660 shares of the company’s stock, valued at approximately $2,565,889.20. This represents a 19.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Automatic Data Processing Trading Up 1.0%
Shares of NASDAQ ADP traded up $2.59 during trading hours on Friday, hitting $266.46. The company’s stock had a trading volume of 2,462,359 shares, compared to its average volume of 3,153,911. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.04 and a current ratio of 1.05. The stock has a market cap of $106.51 billion, a price-to-earnings ratio of 24.36 and a beta of 0.83. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $315.26. The business has a 50-day simple moving average of $235.06 and a 200-day simple moving average of $224.30.
Automatic Data Processing (NASDAQ:ADP – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.59 by $0.05. The company had revenue of $5.47 billion for the quarter, compared to the consensus estimate of $5.44 billion. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.Automatic Data Processing’s revenue was up 6.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.26 EPS. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, analysts anticipate that Automatic Data Processing, Inc. will post 12.22 earnings per share for the current fiscal year.
Analyst Upgrades and Downgrades
View Our Latest Stock Analysis on ADP
Key Automatic Data Processing News
Here are the key news stories impacting Automatic Data Processing this week:
- Positive Sentiment: ADP reported adjusted earnings of $2.64 per share and revenue of $5.47 billion, exceeding consensus estimates of $2.59 and $5.44 billion, respectively. Revenue increased 6.8% year over year, while management issued fiscal 2027 EPS guidance of $12.12-$12.34. ADP’s Q2 CY2026 sales beat estimates
- Positive Sentiment: Analyst sentiment improved after the results. BMO Capital Markets raised its price target to $305 from $248 while maintaining a market-perform rating, and Guggenheim lifted its target to $300 and upgraded the stock to buy. Citi, Morgan Stanley, Stifel, and Wells Fargo also raised their targets into the $283-$287 range, although they retained neutral or hold-equivalent ratings. BMO raises ADP price target
- Positive Sentiment: A new buy recommendation describes ADP as an attractive technology and business-services company, potentially reinforcing investor confidence in its recurring payroll and human-resources software revenue. New buy recommendation for ADP
- Neutral Sentiment: Commentary remains mixed on valuation. Some analysts view the post-earnings move as having closed ADP’s valuation discount, while others consider the stock reasonable after its approximately 44% five-year gain. ADP post-earnings valuation analysis
- Negative Sentiment: The stock initially declined after earnings despite the beat, suggesting investors may have taken profits or wanted stronger guidance and growth acceleration. The post-earnings dip remains a risk for short-term trading, even as long-term analysts debate whether it represents a buying opportunity. Should investors buy ADP on the post-earnings dip?
Institutional Investors Weigh In On Automatic Data Processing
Several hedge funds and other institutional investors have recently added to or reduced their stakes in ADP. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Automatic Data Processing by 6,493.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider’s stock valued at $892,120,000 after buying an additional 3,415,576 shares in the last quarter. Cardano Risk Management B.V. lifted its position in Automatic Data Processing by 950.1% during the 4th quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider’s stock valued at $916,557,000 after acquiring an additional 3,223,855 shares during the period. Norges Bank purchased a new position in Automatic Data Processing during the 4th quarter valued at about $721,738,000. Clearbridge Investments LLC boosted its stake in Automatic Data Processing by 133.3% during the fourth quarter. Clearbridge Investments LLC now owns 1,687,793 shares of the business services provider’s stock worth $434,151,000 after acquiring an additional 964,405 shares in the last quarter. Finally, Amundi boosted its stake in Automatic Data Processing by 27.7% during the first quarter. Amundi now owns 3,034,002 shares of the business services provider’s stock worth $616,449,000 after acquiring an additional 658,932 shares in the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.
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.
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