Merit Financial Group LLC Purchases 5,919 Shares of Automatic Data Processing, Inc. $ADP

Merit Financial Group LLC increased its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 30.8% during the 4th quarter, Holdings Channel reports. The fund owned 25,122 shares of the business services provider’s stock after buying an additional 5,919 shares during the quarter. Merit Financial Group LLC’s holdings in Automatic Data Processing were worth $6,462,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its holdings in Automatic Data Processing by 0.9% during the third quarter. Vanguard Group Inc. now owns 41,689,633 shares of the business services provider’s stock worth $12,235,907,000 after acquiring an additional 389,451 shares in the last quarter. Capital Research Global Investors lifted its holdings in Automatic Data Processing by 1.5% during the third quarter. Capital Research Global Investors now owns 8,021,194 shares of the business services provider’s stock worth $2,354,220,000 after acquiring an additional 116,074 shares in the last quarter. Wellington Management Group LLP lifted its holdings in Automatic Data Processing by 47.8% during the third quarter. Wellington Management Group LLP now owns 6,830,294 shares of the business services provider’s stock worth $2,004,691,000 after acquiring an additional 2,208,927 shares in the last quarter. Invesco Ltd. lifted its holdings in Automatic Data Processing by 5.7% during the third quarter. Invesco Ltd. now owns 4,837,993 shares of the business services provider’s stock worth $1,419,951,000 after acquiring an additional 261,312 shares in the last quarter. Finally, Ameriprise Financial Inc. lifted its holdings in Automatic Data Processing by 3.3% during the third quarter. Ameriprise Financial Inc. now owns 4,323,554 shares of the business services provider’s stock worth $1,264,118,000 after acquiring an additional 136,142 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock opened at $200.47 on Friday. The firm has a market cap of $80.72 billion, a price-to-earnings ratio of 19.28 and a beta of 0.85. The stock’s 50-day moving average is $209.17 and its 200-day moving average is $243.75. Automatic Data Processing, Inc. has a one year low of $188.16 and a one year high of $329.93. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, beating analysts’ consensus estimates of $2.57 by $0.05. The company had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The company’s quarterly revenue was up 6.2% compared to the same quarter last year. During the same period in the previous year, the company posted $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Equities analysts predict that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be issued a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date is Friday, June 12th. Automatic Data Processing’s payout ratio is 65.38%.

Automatic Data Processing announced that its Board of Directors has approved a share repurchase plan on Wednesday, January 14th that permits the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization permits the business services provider to repurchase up to 5.8% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on ADP. Cantor Fitzgerald began coverage on Automatic Data Processing in a report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price on the stock. Wells Fargo & Company reduced their target price on Automatic Data Processing from $262.00 to $214.00 and set an “underweight” rating on the stock in a report on Friday, March 27th. UBS Group reduced their target price on Automatic Data Processing from $220.00 to $210.00 and set a “neutral” rating on the stock in a report on Monday, April 13th. Morgan Stanley reduced 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. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $278.62.

Insider Activity

In other news, VP Christopher D’ambrosio sold 543 shares of the business’s stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $208.45, for a total value of $113,188.35. Following the sale, the vice president directly owned 8,912 shares in the company, valued at $1,857,706.40. The trade was a 5.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, VP David Foskett sold 266 shares of the business’s stock in a transaction dated Thursday, February 5th. The shares were sold at an average price of $237.00, for a total value of $63,042.00. Following the completion of the sale, the vice president owned 10,954 shares in the company, valued at approximately $2,596,098. This trade represents a 2.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,809 shares of company stock worth $410,410 over the last three months. Corporate insiders own 0.20% of the company’s stock.

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.