American Century Companies Inc. Purchases 11,223 Shares of Automatic Data Processing, Inc. $ADP

American Century Companies Inc. raised its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 1.3% in the third quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 852,854 shares of the business services provider’s stock after purchasing an additional 11,223 shares during the quarter. American Century Companies Inc.’s holdings in Automatic Data Processing were worth $250,313,000 at the end of the most recent quarter.

Other large investors have also bought and sold shares of the company. Howard Hughes Medical Institute bought a new stake in shares of Automatic Data Processing during the second quarter valued at approximately $27,000. Westside Investment Management Inc. boosted its stake 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 valued at $28,000 after purchasing an additional 40 shares during the last quarter. TruNorth Capital Management LLC bought a new stake in shares of Automatic Data Processing in the 3rd quarter worth $28,000. Cloud Capital Management LLC bought a new stake in shares of Automatic Data Processing in the 3rd quarter worth $29,000. Finally, Y.D. More Investments Ltd purchased a new position in shares of Automatic Data Processing in the third quarter worth $32,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Trading Down 1.8%

NASDAQ:ADP opened at $214.36 on Friday. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.03 and a quick ratio of 1.03. The firm has a market capitalization of $86.31 billion, a price-to-earnings ratio of 20.61 and a beta of 0.85. Automatic Data Processing, Inc. has a one year low of $203.26 and a one year high of $329.93. The business has a fifty day moving average price of $242.81 and a 200-day moving average price of $266.09.

Automatic Data Processing (NASDAQ:ADP) last released 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 for the quarter, compared to the consensus estimate of $5.34 billion. During the same period in the previous year, the business earned $2.35 earnings per share. Automatic Data Processing’s quarterly revenue 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 forecast that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Dividend Announcement

The business also recently disclosed 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. This represents a $6.80 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s payout ratio is presently 65.38%.

Automatic Data Processing declared that its board has authorized a stock buyback plan on Wednesday, January 14th that authorizes the company to buyback $6.00 billion in shares. This buyback authorization authorizes the business services provider to purchase up to 5.8% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the company. Stifel Nicolaus dropped their price objective 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 lowered their target price on shares of 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. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. JPMorgan Chase & Co. decreased their price objective on shares of Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a report on Thursday, January 29th. Finally, Wells Fargo & Company dropped their target price on shares of Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a report on Thursday, January 29th. Two investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Automatic Data Processing currently has a consensus rating of “Hold” and a consensus target price of $290.00.

Insider Activity

In related news, VP Christopher D’ambrosio sold 543 shares of the stock in a transaction that occurred on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total value of $142,423.47. Following the completion of the sale, the vice president directly owned 9,998 shares of the company’s stock, valued at approximately $2,622,375.42. This represents a 5.15% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP David Kwon sold 806 shares of the company’s stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $264.80, for a total transaction of $213,428.80. Following the completion of the transaction, the vice president owned 11,187 shares of the company’s stock, valued at approximately $2,962,317.60. The trade was a 6.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 3,515 shares of company stock valued at $887,074. 0.20% of the stock is owned by insiders.

Automatic Data Processing 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.