Automatic Data Processing, Inc. $ADP is Fundsmith LLP’s 6th Largest Position

Fundsmith LLP reduced its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 1.2% in the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 4,311,603 shares of the business services provider’s stock after selling 50,496 shares during the quarter. Automatic Data Processing makes up 6.4% of Fundsmith LLP’s investment portfolio, making the stock its 6th biggest holding. Fundsmith LLP owned about 1.07% of Automatic Data Processing worth $1,265,455,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also made changes to their positions in ADP. Laurel Wealth Advisors LLC lifted its stake in Automatic Data Processing by 30,110.7% during the second quarter. Laurel Wealth Advisors LLC now owns 4,668,758 shares of the business services provider’s stock worth $1,439,845,000 after purchasing an additional 4,653,304 shares during the last quarter. Norges Bank purchased a new position in Automatic Data Processing in the second quarter valued at approximately $696,841,000. Mitsubishi UFJ Asset Management Co. Ltd. increased its stake in Automatic Data Processing by 32.1% in the third quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 3,273,700 shares of the business services provider’s stock valued at $960,831,000 after purchasing an additional 796,379 shares during the last quarter. Amundi raised its holdings in Automatic Data Processing by 24.9% during the second quarter. Amundi now owns 3,109,120 shares of the business services provider’s stock worth $948,549,000 after purchasing an additional 619,829 shares in the last quarter. Finally, JPMorgan Chase & Co. raised its holdings in Automatic Data Processing by 26.6% during the second quarter. JPMorgan Chase & Co. now owns 2,812,637 shares of the business services provider’s stock worth $867,445,000 after purchasing an additional 591,800 shares in the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.

Insider Buying and Selling at Automatic Data Processing

In other news, VP Brian L. Michaud sold 1,000 shares of the stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $234.18, for a total transaction of $234,180.00. Following the completion of the sale, the vice president owned 15,310 shares in the company, valued at approximately $3,585,295.80. This represents a 6.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP David Kwon sold 900 shares of the firm’s stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $260.00, for a total value of $234,000.00. Following the transaction, the vice president directly owned 11,993 shares in the company, valued at approximately $3,118,180. This represents a 6.98% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 3,515 shares of company stock valued at $887,074. Company insiders own 0.20% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on ADP shares. Stifel Nicolaus lowered their target price on shares of Automatic Data Processing from $280.00 to $270.00 and set a “hold” rating for the company in a report on Monday, February 9th. Morgan Stanley cut their price target 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 reissued a “hold (c+)” rating on shares of Automatic Data Processing in a research report on Monday, December 29th. Cantor Fitzgerald initiated coverage on shares of Automatic Data Processing in a research note on Tuesday, January 27th. They issued an “overweight” rating and a $306.00 price objective for the company. Finally, Jefferies Financial Group restated 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. Two research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $290.00.

Automatic Data Processing Price Performance

Shares of NASDAQ ADP opened at $208.52 on Friday. The stock has a market cap of $83.96 billion, a P/E ratio of 20.05 and a beta of 0.86. Automatic Data Processing, Inc. has a twelve month low of $203.26 and a twelve month high of $329.93. The stock has a 50 day moving average of $234.58 and a two-hundred day moving average of $260.24. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62.

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

Automatic Data Processing announced that its board has authorized a share repurchase program 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 programs are generally a sign that the company’s management believes its shares are undervalued.

Automatic Data Processing Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be given a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 65.38%.

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.