Fundsmith Investment Services LTD. Has $424.07 Million Stock Holdings in Automatic Data Processing, Inc. $ADP

Fundsmith Investment Services LTD. cut its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 4.1% in the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 1,444,865 shares of the business services provider’s stock after selling 62,101 shares during the quarter. Automatic Data Processing accounts for about 6.6% of Fundsmith Investment Services LTD.’s portfolio, making the stock its 7th biggest position. Fundsmith Investment Services LTD. owned approximately 0.36% of Automatic Data Processing worth $424,068,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors also recently modified their holdings of ADP. Howard Hughes Medical Institute purchased a new stake in Automatic Data Processing in the 2nd quarter valued at $27,000. TruNorth Capital Management LLC bought a new position in Automatic Data Processing during the 3rd quarter valued at $28,000. Cloud Capital Management LLC purchased a new position in Automatic Data Processing during the 3rd quarter worth $29,000. Y.D. More Investments Ltd purchased a new position in Automatic Data Processing during the 3rd quarter worth $32,000. Finally, AlphaQuest LLC bought a new stake in shares of Automatic Data Processing in the 3rd quarter worth $38,000. Institutional investors own 80.03% of the company’s stock.

Insider Activity at Automatic Data Processing

In related news, VP Christopher D’ambrosio sold 543 shares of Automatic Data Processing 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 sale, the vice president owned 9,998 shares of the company’s stock, valued at approximately $2,622,375.42. The trade was a 5.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the company’s stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $234.18, for a total value of $234,180.00. Following the completion of the transaction, the vice president owned 15,310 shares in the company, valued at approximately $3,585,295.80. The trade was a 6.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 3,515 shares of company stock valued at $887,074 over the last quarter. 0.20% of the stock is currently owned by insiders.

Automatic Data Processing Trading Up 0.5%

Shares of Automatic Data Processing stock opened at $208.52 on Friday. The firm has a market cap of $83.96 billion, a PE ratio of 20.05 and a beta of 0.86. Automatic Data Processing, Inc. has a 1 year low of $203.26 and a 1 year high of $329.93. 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 stock has a fifty day moving average price of $234.58 and a 200-day moving average price of $260.24.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results 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. The company had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The firm’s quarterly revenue was up 6.2% on a year-over-year basis. During the same period in the previous year, the firm earned $2.35 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Equities research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing announced that its Board of Directors has initiated a stock buyback plan on Wednesday, January 14th that permits the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization permits the business services provider to purchase up to 5.8% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board of directors believes its stock is undervalued.

Automatic Data Processing Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be paid a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s payout ratio is presently 65.38%.

Wall Street Analyst Weigh In

Several analysts have recently commented on ADP shares. JPMorgan Chase & Co. lowered their target price 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. Weiss Ratings restated a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Citigroup reduced their price objective on shares of Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating for the company in a research report on Thursday, January 29th. Jefferies Financial Group reiterated an “underperform” rating and issued a $230.00 price objective (down from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Finally, Cantor Fitzgerald assumed coverage on shares of Automatic Data Processing in a research report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price on the stock. Two 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. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $290.00.

Automatic Data Processing Company 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.