On January 6th, Automatic Data Processing Vice President David Kwon executed a sale of 900 shares, generating proceeds of $234,000. Following this transaction, his direct ownership stands at 11,993 shares, representing a 6.98% reduction in his total stake. The filing with the Securities and Exchange Commission confirms this trade and underscores continued insider portfolio rebalancing at one of the largest human capital management firms globally.

For the quarter ended October 29th, ADP reported earnings per share of $2.49, surpassing the consensus estimate of $2.44 by 5 cents. Revenue rose 7.1% year-over-year to $5.18 billion, edging past the analysts’ forecast of $5.14 billion. The company achieved a net margin of 19.79% and a return on equity of 70.63%, reflecting strong operational leverage in its cloud-based workforce management business. Management reaffirmed full-year guidance in the range of 10.811 to 11.011 EPS, while the current consensus for fiscal 2026 stands at 9.93 EPS.

ADP announced a quarterly dividend of $1.70 per share, payable January 1st to shareholders of record as of December 12th. This represents a 10.4% increase over the previous payout of $1.54 and translates to an annualized dividend of $6.80, yielding approximately 2.6%. The payout ratio remains elevated at 67.13%, reflecting the company’s confidence in its free cash flow generation and ongoing commitment to returning capital to investors.

During the recent quarters, several hedge funds and asset managers have modified their holdings in ADP. Brighton Jones LLC boosted its stake by 92.1%, adding 4,808 shares. Bison Wealth LLC increased its position by 22.8%, acquiring an additional 681 shares. Advisory Alpha LLC more than doubled its exposure with a 130.2% raise, while SCS Capital Management initiated a new position valued at $2.83 million. Collectively, institutional investors now hold approximately 80.03% of the company’s outstanding shares, underscoring continued confidence in ADP’s long-term growth trajectory.