Sumitomo Mitsui Trust Group Inc. Grows Stock Holdings in Automatic Data Processing, Inc. $ADP

Sumitomo Mitsui Trust Group Inc. lifted its position in Automatic Data Processing, Inc. (NASDAQ:ADP) by 0.7% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 1,032,547 shares of the business services provider’s stock after buying an additional 6,821 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned approximately 0.25% of Automatic Data Processing worth $303,053,000 at the end of the most recent reporting period.

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

Automatic Data Processing Stock Performance

Shares of ADP stock opened at $266.02 on Monday. The stock’s 50-day moving average is $257.60 and its two-hundred day moving average is $282.82. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.05 and a current ratio of 1.05. Automatic Data Processing, Inc. has a 1 year low of $247.18 and a 1 year high of $329.93. The firm has a market cap of $107.59 billion, a price-to-earnings ratio of 26.26 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, October 29th. The business services provider reported $2.49 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.44 by $0.05. Automatic Data Processing had a return on equity of 70.63% and a net margin of 19.79%.The firm had revenue of $5.18 billion for the quarter, compared to the consensus estimate of $5.14 billion. During the same quarter last year, the business posted $2.33 EPS. The firm’s quarterly revenue was up 7.1% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Analysts predict that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current year.

Automatic Data Processing Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, January 1st. Shareholders of record on Friday, December 12th were given a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend was Friday, December 12th. This is an increase from Automatic Data Processing’s previous quarterly dividend of $1.54. Automatic Data Processing’s payout ratio is 67.13%.

Insider Activity at Automatic Data Processing

In other news, VP David Kwon sold 900 shares of the stock in a transaction dated Tuesday, January 6th. The shares were 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 in the company, valued at approximately $3,118,180. This represents a 6.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.20% of the company’s stock.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. Citigroup assumed coverage on Automatic Data Processing in a report on Thursday, October 23rd. They issued a “neutral” rating and a $303.00 target price for the company. Jefferies Financial Group restated an “underperform” rating and set a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. UBS Group dropped their price objective on shares of Automatic Data Processing from $315.00 to $290.00 and set a “neutral” rating on the stock in a research report on Wednesday, September 17th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating for the company in a research report on Thursday, October 30th. Two research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Automatic Data Processing has a consensus rating of “Hold” and a consensus price target of $306.42.

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.