Automatic Data Processing (ADP) Stock News Today: Institutional Buying, Dividend Hike and Mixed Valuations

Date: November 29, 2025 – Ticker: NASDAQ: ADP

Automatic Data Processing, Inc. (ADP) stock is back in focus today as fresh regulatory filings reveal a wave of institutional buying — and some selective selling — against a backdrop of solid earnings, a double‑digit dividend hike and a lively debate over whether the shares are cheap or expensive at around $255. ^[1]

Below is a complete roundup of the most relevant ADP stock news published on November 29, 2025, plus the key fundamental and valuation context investors are watching.

1. Today’s ADP Stock Headlines (November 29, 2025)

Four new 13F‑based stories hit the tape today, all centered on how big money is repositioning around ADP. All four come from MarketBeat’s summaries of recent SEC filings. ^[2]

Skandinaviska Enskilda Banken AB publ boosts its ADP stake

Skandinaviska Enskilda Banken AB publ raised its position in ADP by 7.3% in the second quarter, bringing its holdings to 131,806 shares worth about $40.65 million, according to the latest filing. ^[3]

MarketBeat’s summary of the same filing highlights a broader institutional theme:

Norges Bank (Norway’s sovereign wealth fund) opened a new position of roughly $697 million in ADP.
HSBC Holdings PLC and other large investors also increased their stakes, contributing to institutional ownership of about 80% of the float. ^[4]

At the same time, the article notes heavy insider selling over the last 90 days:
two ADP vice presidents sold sizable blocks at around $296.57 per share, and in total insiders have sold 52,516 shares (~$15.6 million), leaving corporate insiders with roughly 0.20% ownership. ^[5]

HSBC Holdings PLC adds to its ADP position

A second article today shows HSBC Holdings PLC increasing its ADP stake by 2.5% in Q2. The bank now owns 1,181,359 shares, or about 0.29% of the company, valued at approximately $363.6 million. ^[6]

The same piece reiterates the recent fundamental backdrop:
ADP’s latest quarter delivered EPS of $2.49 on revenue of roughly $5.18 billion, modestly ahead of consensus, and the company raised its quarterly dividend from $1.54 to $1.70 per share (annualized $6.80, about a 2.7% yield at current prices). ^[7]

Quadrant Capital Group LLC increases its stake by 21.4%

A third MarketBeat alert shows Quadrant Capital Group LLC increasing its holdings in ADP by 21.4% in Q2. The fund bought 2,213 additional shares, bringing its total to 12,570 shares, valued at about $3.88 million at quarter‑end. ^[8]

While small in absolute size, this kind of incremental buying from wealth managers rounds out the picture of steady institutional accumulation.

Elevation Point Wealth Partners trims its ADP exposure

Balancing the bullish flows, Elevation Point Wealth Partners LLCcut its ADP stake by 17.5% in the same quarter. It sold 1,268 shares, leaving 5,965 shares worth around $1.84 million. ^[9]

That article also repeats the insider‑selling and earnings/dividend highlights noted in the Skandinaviska and HSBC pieces, underscoring how today’s headlines revolve around the same core narrative: institutions are rotating in, while insiders have been net sellers. ^[10]

2. Where ADP Stock Trades Now

As of the latest real‑time data, Automatic Data Processing stock trades around $255 per share, with several data providers showing $255.30 intraday. ^[11]

Key trading and balance‑sheet metrics from recent data:

Market cap: roughly $103 billion. ^[12]
1‑year range: about $247 (low) to $330 (high) — ADP is currently trading more than 20% below its 52‑week high. ^[13]
Valuation:
- P/E ratio around 25x earnings. ^[14]
- PEG ratio of roughly 2.4, indicating investors still pay a premium to growth. ^[15]
- EV/EBITDA of 18.0x, based on an enterprise value of about $110.1 billion and trailing twelve‑month EBITDA of $6.12 billion. ^[16]
Balance sheet: debt‑to‑equity ratio around 0.62, with quick and current ratios near 1.05, signaling a generally healthy liquidity position. ^[17]

From a price‑action standpoint, ADP is trading below both its 50‑day and 200‑day moving averages, reflecting a cooling trend after years of strong performance. ^[18]

Simply Wall St estimates that ADP shares are down about 12.2% year‑to‑date, even though the business has continued to grow revenue and earnings. ^[19]

3. Earnings Check: Q1 FY2026 Beat and Steady Outlook

ADP’s most recent quarter — fiscal Q1 2026, reported on October 29, 2025 — continues to anchor much of today’s commentary.

According to Zacks (via Nasdaq) and other earnings summaries: ^[20]

Revenue: about $5.2 billion, up 7.1% year‑over‑year and essentially in line with Wall Street expectations.
Non‑GAAP EPS:$2.49, beating consensus by roughly 2% and growing 6.9% versus a year ago.
Segment performance:
- Employer Services revenue grew ~7% to $3.5 billion, with pays‑per‑control roughly flat.
- PEO Services revenue also rose 7% to about $1.7 billion, in line with forecasts.
- Interest on funds held for clients increased 13% to $287 million, reflecting higher interest rates, though slightly below some estimates.

Margins remained solid:

Adjusted EBIT increased 7% to $1.3 billion, with an adjusted EBIT margin of ~25.5%. ^[21]

FY2026 guidance

Management reaffirmed a steady outlook for the full fiscal year 2026:

Revenue growth:5–6% year‑over‑year.
Adjusted EPS growth:8–10%.
Adjusted EBIT margin expansion:50–70 basis points.
Segment guidance calls for 5–6% revenue growth in Employer Services and 5–7% in PEO Services, with an expected 23% effective tax rate. ^[22]

Despite the beat, Zacks notes that ADP shares have fallen about 2.8% since the report and that earnings estimates have drifted slightly lower, resulting in a Zacks Rank #3 (Hold) and a “D” composite score on value, growth and momentum. ^[23]

In other words, the fundamentals are strong, but sentiment has cooled.

4. Dividend King Status: 10% Dividend Increase and 51 Years of Raises

Income investors received big news earlier this month that still matters for today’s valuation story.

On November 12, 2025, ADP’s board approved a $0.16 increase in the quarterly cash dividend, from $1.54 to $1.70 per share, lifting the annual rate to $6.80 — a 10% hike. ^[24]

Key details:

Payment date: January 1, 2026.
Record date: December 12, 2025. ^[25]
At today’s ~$255 share price, the new dividend translates to a yield of roughly 2.7%. ^[26]
The payout ratio, based on recent earnings, sits around two‑thirds of net income, leaving room for continued investment and buybacks. ^[27]

This increase marks ADP’s 51st consecutive year of dividend raises, cementing its status as a Dividend King / Dividend Aristocrat‑style stock, a theme echoed in several recent analyses and listicles of top dividend growers. ^[28]

For investors focused on reliable income plus moderate growth, this dividend track record is one of ADP’s biggest selling points.

5. Product, AI and Strategy Updates Fueling the Long‑Term Story

Beyond the numbers, ADP has been busy on the product and strategy front — particularly in AI‑driven HR technology.

Recent company announcements and third‑party coverage highlight several initiatives: ^[29]

Unified global workforce management suite

ADP launched ADP WorkForce Suite across ADP Workforce Now, ADP Lyric HCM and ADP Global Payroll, creating a unified global workforce management solution.
The suite integrates time and attendance, scheduling, absence management, analytics and mobile access for organizations operating in more than 140 countries and territories.
The offering builds on ADP’s earlier acquisition of WorkForce Software and targets employers with 150+ employees, aiming to simplify compliance and connect HR, payroll and time systems in one layer. ^[30]

ADP Workforce Now named a leader in HCM

ADP Workforce Now was named a Leader in “The Forrester Wave: Human Capital Management Solutions, Q4 2025”, receiving top marks in numerous criteria. ^[31]
The report cited:
- Next‑gen AI features such as ADP Assist,
- Strong benchmarking and workforce‑management capabilities, and
- A transparent pricing model that includes AI capabilities at no additional cost.

This recognition reinforces ADP’s positioning as a major player in cloud HCM, directly relevant to its long‑term competitive moat.

HR and AI trends for 2026

In its 2026 HR Trends Guide, ADP’s research arm paints a picture of rapid AI adoption in HR: ^[32]

84% of large, 76% of mid‑size and 73% of small organizations expect AI to streamline HR processes without replacing employees.
Governance frameworks for generative AI already exist at 20% of small, 50% of mid‑size and 66% of large companies.

ADP is clearly betting that AI‑augmented HR workflows — from scheduling to pay decisions — will anchor future demand for its platforms.

Pequity acquisition: compensation analytics and pay transparency

On earnings day, ADP also announced the acquisition of Pequity, a modern compensation‑management platform. ^[33]

Pequity brings AI‑enhanced budgeting and scenario planning tools, flexible configuration and deep integrations into HCM ecosystems.
ADP says the deal is designed to help employers cope with new pay‑transparency laws and manage complex compensation decisions at scale.

That move complements WorkForce Software and fits the pattern of ADP using bolt‑on deals to expand its HCM stack.

6. Macro Backdrop: ADP Employment Data and Sector Headwinds

ADP’s own employment data and a key competitor’s earnings add nuance to the macro backdrop.

ADP National Employment Report (“NER Pulse”)

On November 25, 2025, ADP released a preliminary NER estimate for the four weeks ending November 8, 2025: ^[34]

U.S. private employers shed an average of 13,500 jobs per week over the period.
The data is a seasonally adjusted four‑week moving average and is published weekly as the “NER Pulse,” supplementing the monthly ADP National Employment Report.

Earlier in the month, ADP reported that private‑sector employment increased by 42,000 jobs in October, with median pay up 4.5% year‑over‑year for job‑stayers and 6.7% for job‑changers. ^[35]

The combination of slowing job gains and still‑elevated wage growth supports the narrative of a cooling but not collapsing labor market — a key factor for ADP, whose revenue is tied partly to payroll counts and pays‑per‑control.

Sector signal: Workday’s lukewarm quarter

On November 26, 2025, Reuters reported that Workday’s quarterly subscription revenue came in only slightly above expectations, with guidance that suggested softer demand from some customers, sending WDAY shares down nearly 7% in extended trading. ^[36]

The article explicitly notes that Workday competes with Oracle, SAP and payroll providers such as ADP, and that some enterprises are tightening spending on HR platforms amid economic uncertainty. ^[37]

While the story is about Workday, it indirectly underscores a risk for ADP: corporates can defer or slow big HCM upgrades, which may weigh on growth expectations for the whole space.

7. Valuation: Is ADP Stock Undervalued or Overpriced?

Today’s institutional flow headlines land in the middle of a lively valuation debate. Different methodologies point in opposite directions.

7.1 Discounted cash flow (DCF): ~20% undervalued

Simply Wall St’s latest DCF analysis estimates a fair value of $316.40 per share, implying ADP is about 19.6% undervalued at current prices. ^[38]

Their work is based on:

Recent free cash flow of $4.16 billion,
Projected growth to $5.58 billion by 2028, and
A two‑stage Free Cash Flow to Equity model extending out to 2035. ^[39]

They also note:

A P/E of ~24.9x, slightly above the broader professional services industry (~24.3x) but below a peer group average (~27.2x).
A “fair” P/E ratio of 29.8x for ADP based on its growth and quality profile, supporting the undervaluation thesis. ^[40]

Result: “UNDERVALUED” in their framework.

7.2 EV/EBITDA and relative multiples: ~22% downside

By contrast, valueinvesting.io’s EV/EBITDA model suggests ADP is overvalued:

EV/EBITDA: 18.01x as of late November.
Their fair‑value range (based on historical P/E and EBITDA multiples) centers near $197.87 per share, implying roughly ‑22.5% “upside” (i.e., potential downside from current levels). ^[41]

From this perspective, ADP looks expensive versus its own history and typical valuation bands, especially if growth slows.

7.3 Analyst price targets: upside of ~22%

StockAnalysis data, based on 12 covering analysts, shows: ^[42]

Consensus rating: “Hold”.
Average 12‑month price target:$312.25, implying about 22% upside from recent prices.

MarketBeat’s compilation of Wall Street targets is in a similar ballpark, with a consensus around $312–313 and a cluster of “neutral” to “hold” ratings from major banks. ^[43]

7.4 Big picture

Putting it together:

DCF and most analyst targets frame ADP as modestly undervalued.
EV/EBITDA and some value screens frame it as overvalued versus long‑term norms.
The market seems to be splitting the difference, assigning a mid‑20s earnings multiple to a business growing revenue in the mid‑single digits and earnings in the high‑single digits.

For investors, today’s institutional buying vs. insider selling only adds more texture to that valuation tug‑of‑war.

8. Key Takeaways for ADP Shareholders on November 29, 2025

1. Today’s direct ADP stock news is all about institutional flows.
Skandinaviska Enskilda Banken, HSBC and Quadrant Capital Group all increased their ADP stakes, while Elevation Point Wealth Partners trimmed its position — moves that reinforce ADP’s status as a heavily institution‑owned, large‑cap dividend name. ^[44]

2. Fundamentals remain robust.
Q1 FY2026 delivered mid‑single‑digit revenue growth, high‑single‑digit EPS growth, and stable margins, with guidance calling for 5–6% revenue and 8–10% EPS growth this fiscal year. ^[45]

3. The dividend story just got stronger.
A 10% dividend hike and 51‑year streak of increases keep ADP firmly in “Dividend King” territory, with a yield near 2.7% and a payout ratio that still leaves room for reinvestment. ^[46]

4. AI‑driven HCM and compensation tools are the long‑term growth lever.
The rollout of ADP WorkForce Suite, leadership recognition for ADP Workforce Now, the Pequity acquisition and the 2026 AI‑focused HR trends report all point to a strategy centered on AI‑enhanced global HR platforms. ^[47]

5. Valuation is genuinely debated.
Depending on the lens, ADP looks somewhere between 20% undervalued (DCF/analysts) and 20% overvalued (EV/EBITDA). For investors, that means future returns will hinge on whether ADP can hit — or exceed — its mid‑single‑digit growth targets in a market where some customers are clearly tightening HR tech budgets. ^[48]

Note: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Investors should do their own research or consult a licensed financial advisor before making investment decisions.

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References

Automatic Data Processing (ADP) Stock News Today: Institutional Buying, Dividend Hike and Mixed Valuations – November 29, 2025