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ADP Authorized to Purchase $5 Billion of its Common Stock

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Rhea-AI Summary

On Nov. 9, 2022, ADP (Nasdaq: ADP) announced that its board of directors has authorized a new $5 billion stock repurchase program. This authorization replaces the previous 2019 program of the same amount. As of October 28, 2022, ADP had approximately 415 million shares outstanding. The initiative aims to enhance shareholder value by reducing the number of shares in circulation.

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Positive

  • Approval of a new $5 billion stock repurchase program enhances shareholder value.
  • Replacement of the previous 2019 authorization indicates a commitment to return capital to shareholders.

Negative

  • None.

News Market Reaction – ADP

+6.03%
+6.03% Session move

In the trading session that priced this news, ADP gained 6.03%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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ROSELAND, N.J., Nov. 9, 2022 /PRNewswire/ -- The board of directors of ADP (Nasdaq: ADP) authorized the purchase of $5 billion of its common stock, Carlos Rodriguez, chief executive officer, announced today.

This authorization replaces in its entirety the previous 2019 authorization to purchase $5 billion of its common stock.  ADP had approximately 415 million common shares outstanding as of October 28, 2022. 

About ADP (Nasdaq: ADP)
Designing better ways to work through cutting-edge products, premium services and exceptional experiences that enable people to reach their full potential. HR, Talent, Time Management, Benefits and Payroll. Informed by data and designed for people. Learn more at ADP.com.

ADP, the ADP logo, and Always Designing for People are trademarks of ADP, Inc.

Copyright © 2022 ADP, Inc. All rights reserved.

ADP - Investor Relations

Investor Relations Contacts:
Danyal Hussain, CFA
973.974.7836
Danyal.Hussain@adp.com 

Matthew Keating, CFA
973.974.3037
Matthew.Keating@adp.com

ADP - Media

Media Contact:
Allyce Hackmann
201.400.4583
Allyce.Hackmann@adp.com

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/adp-authorized-to-purchase-5-billion-of-its-common-stock-301673325.html

SOURCE ADP - IR

FAQ

What is the purpose of ADP's $5 billion stock repurchase program?

The $5 billion stock repurchase program aims to enhance shareholder value by reducing the number of shares in circulation.

When was ADP's new stock repurchase program announced?

ADP announced the new stock repurchase program on November 9, 2022.

How many shares of ADP are outstanding as of October 28, 2022?

ADP had approximately 415 million common shares outstanding as of October 28, 2022.

How does the new stock repurchase program affect ADP investors?

The new stock repurchase program may positively impact ADP investors by potentially increasing earnings per share through the reduction of outstanding shares.