American Century Companies Inc. Has $135.73 Million Stock Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• American Century Companies Inc. reduced its stake in Automatic Data Processing, Inc. by 5.9% in the first quarter, now holding 444,246 shares valued at approximately $135.73 million.
• Automatic Data Processing reported a $2.26 earnings per share for the last quarter, exceeding expectations by $0.03, with revenues of $5.13 billion, marking a 6.3% year-over-year increase.
• The company declared a quarterly dividend of $1.54 per share, scheduled for payment on October 1st, providing a 2.0% annual yield based on the stock price.

American Century Companies Inc. decreased its position in Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 5.9% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 444,246 shares of the business services provider's stock after selling 27,885 shares during the period. American Century Companies Inc. owned 0.11% of Automatic Data Processing worth $135,731,000 at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in the company. Ethic Inc. boosted its holdings in Automatic Data Processing by 9.2% in the first quarter. Ethic Inc. now owns 74,643 shares of the business services provider's stock valued at $22,881,000 after acquiring an additional 6,294 shares during the last quarter. EverSource Wealth Advisors LLC boosted its holdings in Automatic Data Processing by 11.8% in the first quarter. EverSource Wealth Advisors LLC now owns 2,780 shares of the business services provider's stock valued at $850,000 after acquiring an additional 293 shares during the last quarter. Element Capital Management LLC bought a new position in Automatic Data Processing in the first quarter valued at about $2,755,000. Dimensional Fund Advisors LP boosted its holdings in Automatic Data Processing by 1.9% in the first quarter. Dimensional Fund Advisors LP now owns 2,474,654 shares of the business services provider's stock valued at $755,996,000 after acquiring an additional 46,529 shares during the last quarter. Finally, Horizon Investments LLC boosted its holdings in Automatic Data Processing by 3.8% during the first quarter. Horizon Investments LLC now owns 7,527 shares of the business services provider's stock worth $2,300,000 after buying an additional 279 shares during the last quarter. Institutional investors own 80.03% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on ADP. BMO Capital Markets upgraded Automatic Data Processing to a "hold" rating and set a $340.00 target price on the stock in a report on Thursday, July 10th. Mizuho raised their target price on Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a report on Friday, June 13th. UBS Group reduced their target price on Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating on the stock in a report on Friday, June 13th. Stifel Nicolaus raised their price target on Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research report on Thursday, July 31st. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $315.00 price target on shares of Automatic Data Processing in a research report on Thursday, June 5th. Two equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $317.00.

Automatic Data Processing Stock Down 1.3%

Automatic Data Processing stock traded down $4.09 during midday trading on Thursday, reaching $304.94. The stock had a trading volume of 1,381,160 shares, compared to its average volume of 1,728,954. The firm's fifty day simple moving average is $305.17 and its 200-day simple moving average is $305.65. Automatic Data Processing, Inc. has a 1-year low of $267.25 and a 1-year high of $329.93. The stock has a market capitalization of $123.51 billion, a P/E ratio of 30.56, a price-to-earnings-growth ratio of 2.80 and a beta of 0.81. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.05 and a current ratio of 1.05.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, beating analysts' consensus estimates of $2.23 by $0.03. The firm had revenue of $5.13 billion during the quarter, compared to the consensus estimate of $5.05 billion. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The business's revenue was up 6.3% compared to the same quarter last year. During the same period last year, the company earned $2.09 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th will be paid a dividend of $1.54 per share. This represents a $6.16 annualized dividend and a dividend yield of 2.0%. The ex-dividend date is Friday, September 12th. Automatic Data Processing's payout ratio is currently 61.72%.

Automatic Data Processing Profile

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.