Fundsmith LLP Sells 50,496 Shares of Automatic Data Processing, Inc. $ADP

Fundsmith LLP lessened its stake in shares of Automatic Data Processing, Inc. (NASDAQ:ADP) by 1.2% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 4,311,603 shares of the business services provider’s stock after selling 50,496 shares during the quarter. Automatic Data Processing comprises approximately 6.4% of Fundsmith LLP’s portfolio, making the stock its 6th biggest position. Fundsmith LLP’s holdings in Automatic Data Processing were worth $1,265,455,000 at the end of the most recent reporting period.

Several other hedge funds have also recently modified their holdings of ADP. Howard Hughes Medical Institute purchased a new position in Automatic Data Processing during the 2nd quarter worth $27,000. TruNorth Capital Management LLC purchased a new stake in shares of Automatic Data Processing in the third quarter valued at about $28,000. Cloud Capital Management LLC purchased a new stake in shares of Automatic Data Processing in the third quarter valued at about $29,000. Y.D. More Investments Ltd acquired a new position in shares of Automatic Data Processing during the third quarter worth about $32,000. Finally, AlphaQuest LLC acquired a new position in shares of Automatic Data Processing during the third quarter worth about $38,000. 80.03% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on the stock. Morgan Stanley cut their price target on shares of Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a report on Thursday, January 29th. Wells Fargo & Company lowered their price objective on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating on the stock in a report on Thursday, January 29th. Stifel Nicolaus dropped their target price 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. Cantor Fitzgerald began coverage on Automatic Data Processing in a research note on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price for the company. Finally, Jefferies Financial Group reissued an “underperform” rating and issued a $230.00 price target (down from $245.00) on shares of Automatic Data Processing in a report on Tuesday, December 16th. 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 MarketBeat, Automatic Data Processing currently has an average rating of “Hold” and an average price target of $290.00.

Insider Transactions at Automatic Data Processing

In related news, VP David Kwon sold 806 shares of the firm’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 value of $213,428.80. Following the completion of the transaction, the vice president directly owned 11,187 shares of the company’s stock, valued at $2,962,317.60. This trade represents a 6.72% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP David Foskett sold 266 shares of Automatic Data Processing stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total value of $63,042.00. Following the transaction, the vice president directly owned 10,954 shares of the company’s stock, valued at approximately $2,596,098. This represents a 2.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 3,515 shares of company stock worth $887,074. 0.20% of the stock is currently owned by insiders.

Automatic Data Processing Stock Up 0.5%

Shares of NASDAQ ADP opened at $208.52 on Friday. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62. Automatic Data Processing, Inc. has a 52 week low of $203.26 and a 52 week high of $329.93. The firm has a 50-day moving average price of $234.58 and a 200 day moving average price of $260.24. The stock has a market capitalization of $83.96 billion, a price-to-earnings ratio of 20.05 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings data on Wednesday, January 28th. The business services provider reported $2.62 EPS 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 firm had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.34 billion. During the same quarter in the previous year, the firm earned $2.35 earnings per share. The firm’s revenue 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. Equities research analysts anticipate that Automatic Data Processing, Inc. will post 9.93 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

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

Automatic Data Processing announced that its board has approved a stock repurchase 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 stock through open market purchases. Stock repurchase programs are generally a sign that the company’s leadership believes its shares are undervalued.

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.