Automatic Data Processing, Inc. $ADP Shares Purchased by Dimensional Fund Advisors LP

Dimensional Fund Advisors LP boosted its position in Automatic Data Processing, Inc. (NASDAQ:ADP) by 0.8% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 2,408,883 shares of the business services provider’s stock after buying an additional 19,536 shares during the period. Dimensional Fund Advisors LP owned approximately 0.60% of Automatic Data Processing worth $706,987,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Howard Hughes Medical Institute purchased a new stake in shares of Automatic Data Processing in the 2nd quarter valued at $27,000. Westside Investment Management Inc. raised its holdings in shares of Automatic Data Processing by 80.0% during the second quarter. Westside Investment Management Inc. now owns 90 shares of the business services provider’s stock worth $28,000 after purchasing an additional 40 shares during the last quarter. TruNorth Capital Management LLC acquired a new position in Automatic Data Processing during the third quarter valued at $28,000. Cloud Capital Management LLC purchased a new stake in Automatic Data Processing in the third quarter valued at $29,000. Finally, Y.D. More Investments Ltd purchased a new stake in Automatic Data Processing in the third quarter valued at $32,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

Automatic Data Processing Price Performance

Automatic Data Processing stock opened at $216.27 on Wednesday. The company’s fifty day moving average price is $241.10 and its 200 day moving average price is $264.60. Automatic Data Processing, Inc. has a 1 year low of $203.26 and a 1 year high of $329.93. The stock has a market capitalization of $87.08 billion, a P/E ratio of 20.80 and a beta of 0.86. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.03.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 earnings per share for the quarter, topping analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The company had revenue of $5.36 billion during the quarter, compared to analysts’ expectations of $5.34 billion. During the same period in the prior year, the business posted $2.35 earnings per share. The firm’s revenue for the quarter was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, equities research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be issued a $1.70 dividend. This represents a $6.80 annualized dividend and a yield of 3.1%. The ex-dividend date 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 program on Wednesday, January 14th that allows the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization allows the business services provider to repurchase up to 5.8% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s management believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Wells Fargo & Company reduced their price target on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Cantor Fitzgerald assumed coverage on Automatic Data Processing in a report on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 price target for the company. Jefferies Financial Group reaffirmed an “underperform” rating and set a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Finally, Morgan Stanley decreased their target price on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research note on Thursday, January 29th. Two research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $290.00.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP Brian L. Michaud sold 1,000 shares of the stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $234.18, for a total transaction of $234,180.00. Following the completion of the transaction, the vice president owned 15,310 shares of the company’s stock, valued at $3,585,295.80. This represents a 6.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Christopher D’ambrosio sold 543 shares of the firm’s 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 transaction, the vice president owned 9,998 shares in the company, valued at approximately $2,622,375.42. This trade represents a 5.15% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 3,515 shares of company stock valued at $887,074 in the last 90 days. Corporate insiders own 0.20% of the company’s stock.

About Automatic Data Processing

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.