Applied Finance Capital Management LLC Makes New $1.13 Million Investment in Automatic Data Processing, Inc. $ADP

Applied Finance Capital Management LLC purchased a new stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) in the third quarter, according to its most recent filing with the SEC. The firm purchased 3,845 shares of the business services provider’s stock, valued at approximately $1,129,000.

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

Automatic Data Processing Price Performance

Shares of ADP stock opened at $226.63 on Tuesday. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. The firm has a fifty day simple moving average of $256.02 and a 200-day simple moving average of $274.75. The company has a market capitalization of $91.25 billion, a PE ratio of 21.79 and a beta of 0.85. Automatic Data Processing, Inc. has a twelve month low of $224.93 and a twelve month high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last announced 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. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.The company had revenue of $5.36 billion during the quarter, compared to the consensus estimate of $5.34 billion. During the same period last year, the firm earned $2.35 earnings per share. The company’s revenue was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Equities research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

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

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be given a dividend of $1.70 per share. 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 3.0%. Automatic Data Processing’s dividend payout ratio (DPR) is presently 65.38%.

Automatic Data Processing News Summary

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Board authorized a $6.0 billion buyback and ADP declared a $1.70 quarterly dividend (ex-dividend March 13, payable April 1), which support buyback-driven EPS accretion and income demand. Read More.
• Neutral Sentiment: Q2 results showed a modest beat (EPS $2.62 vs. $2.57) and revenue growth ~6.2%; FY‑2026 EPS guidance was set at 10.091–11.011 — positive fundamentals but largely already priced in. Read More.
• Negative Sentiment: Insider selling: VP David Foskett sold 266 shares at an average $237 on Feb. 5 (reducing his stake ~2.4%), a small but visible insider sale that may spook short‑term sentiment. Read More.
• Negative Sentiment: Another VP, Brian L. Michaud, sold 1,000 shares at ~$234.18 on Feb. 6 (a ~6.1% reduction in his holding), adding to the insider selling narrative that coincided with a new 12‑month low. Read More.
• Negative Sentiment: Analyst action: Stifel cut its price target from $280 to $270 and kept a “hold” rating, signaling more cautious near‑term expectations and contributing to downward pressure. Read More.
• Negative Sentiment: Market commentary flagged ADP hitting a new 12‑month low amid the recent insider sales and analyst downgrades — a technical/psychological negative for momentum traders. Read More.

Insider Activity at Automatic Data Processing

In related news, VP Brian L. Michaud sold 1,000 shares of Automatic Data Processing stock in a transaction on Friday, February 6th. The shares were sold at an average price of $234.18, for a total value of $234,180.00. Following the completion of the sale, the vice president owned 15,310 shares in the company, valued at approximately $3,585,295.80. The trade was a 6.13% 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. Also, VP David Foskett sold 266 shares of the company’s stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $237.00, for a total transaction of $63,042.00. Following the completion of the sale, the vice president directly owned 10,954 shares in the company, valued at $2,596,098. This represents a 2.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 3,515 shares of company stock worth $887,074 over the last three months. 0.20% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

ADP has been the topic of several analyst reports. Stifel Nicolaus decreased their price target on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a research note on Monday. Citigroup dropped their price objective on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a research note on Thursday, January 29th. Wells Fargo & Company dropped their price target on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Jefferies Financial Group reaffirmed an “underperform” rating and issued a $230.00 target price (down from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Finally, Morgan Stanley reduced their price objective on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research note on Thursday, January 29th. Two investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $290.00.

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.