Automatic Data Processing, Inc. $ADP Stock Position Raised by Teacher Retirement System of Texas

Teacher Retirement System of Texas raised its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 9.6% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 257,387 shares of the business services provider’s stock after purchasing an additional 22,641 shares during the period. Teacher Retirement System of Texas owned 0.06% of Automatic Data Processing worth $66,208,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Imprint Wealth LLC purchased a new stake in shares of Automatic Data Processing during the 3rd quarter worth about $25,000. TruNorth Capital Management LLC purchased a new stake in shares of Automatic Data Processing during the 3rd quarter worth about $28,000. Cloud Capital Management LLC purchased a new stake in shares of Automatic Data Processing during the 3rd quarter worth about $29,000. Board of the Pension Protection Fund bought a new position in shares of Automatic Data Processing in the 4th quarter valued at approximately $31,000. Finally, Y.D. More Investments Ltd bought a new position in shares of Automatic Data Processing in the 3rd quarter valued at approximately $32,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Price Performance

Shares of NASDAQ:ADP opened at $201.69 on Thursday. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $329.93. The firm has a market capitalization of $81.21 billion, a PE ratio of 19.39 and a beta of 0.85. The business’s 50 day moving average is $207.91 and its 200-day moving average is $241.90. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, topping 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 for the quarter, compared to analyst estimates of $5.34 billion. During the same quarter last year, the firm earned $2.35 EPS. Automatic Data Processing’s revenue for the quarter was up 6.2% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Sell-side analysts predict that Automatic Data Processing, Inc. will post 10.96 earnings per share for the current year.

Automatic Data Processing Announces Dividend

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

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

Analyst Ratings Changes

A number of research analysts recently weighed in on the company. Citigroup cut their price objective on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research note on Thursday, January 29th. Wells Fargo & Company dropped their price target on Automatic Data Processing from $262.00 to $214.00 and set an “underweight” rating on the stock in a research report on Friday, March 27th. Stifel Nicolaus dropped their price target on Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating on the stock in a research report on Monday, February 9th. Morgan Stanley dropped their price target on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a research report on Thursday, January 29th. Finally, UBS Group dropped their price target on Automatic Data Processing from $220.00 to $210.00 and set a “neutral” rating on the stock in a research report on Monday, April 13th. One equities research 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 issued a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $273.85.

Insider Transactions at Automatic Data Processing

In related news, VP David Foskett sold 266 shares of the business’s stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total value of $63,042.00. Following the sale, the vice president owned 10,954 shares of the company’s stock, valued at $2,596,098. The trade was a 2.37% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Christopher D’ambrosio sold 543 shares of the business’s stock in a transaction on Monday, March 16th. The shares were sold at an average price of $208.45, for a total value of $113,188.35. Following the completion of the sale, the vice president directly owned 8,912 shares in the company, valued at approximately $1,857,706.40. This represents a 5.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 1,809 shares of company stock valued at $410,410. 0.20% of the stock is owned by corporate insiders.

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.