Automatic Data Processing, Inc. $ADP is Fundsmith Investment Services LTD.’s 7th Largest Position

Fundsmith Investment Services LTD. reduced its position in Automatic Data Processing, Inc. (NASDAQ:ADP) by 4.1% during the third quarter, HoldingsChannel reports. 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 comprises 6.6% of Fundsmith Investment Services LTD.’s holdings, making the stock its 7th biggest position. Fundsmith Investment Services LTD.’s holdings in Automatic Data Processing were worth $424,068,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in ADP. Brighton Jones LLC increased its stake in shares of Automatic Data Processing by 92.1% in the fourth quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider’s stock worth $2,935,000 after purchasing an additional 4,808 shares in the last quarter. Bison Wealth LLC lifted its stake in shares of Automatic Data Processing by 22.8% during the 4th quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider’s stock valued at $1,073,000 after buying an additional 681 shares in the last quarter. Schnieders Capital Management LLC. lifted its stake in shares of Automatic Data Processing by 21.8% during the 2nd quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider’s stock valued at $388,000 after buying an additional 225 shares in the last quarter. KBC Group NV boosted its holdings in Automatic Data Processing by 6.4% in the 2nd quarter. KBC Group NV now owns 89,900 shares of the business services provider’s stock worth $27,725,000 after buying an additional 5,387 shares during the period. Finally, ABN Amro Investment Solutions bought a new position in Automatic Data Processing in the 2nd quarter worth approximately $2,943,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, VP David Kwon sold 806 shares of the business’s stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $264.80, for a total transaction of $213,428.80. Following the completion of the transaction, the vice president directly owned 11,187 shares in the company, valued at $2,962,317.60. The trade was a 6.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the company’s stock in a transaction dated Friday, February 6th. The stock was 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 $3,585,295.80. This represents a 6.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 3,515 shares of company stock worth $887,074 over the last three months. Corporate insiders own 0.20% of the company’s stock.

Analysts Set New Price Targets

A number of brokerages have issued reports on ADP. Cantor Fitzgerald began coverage on shares of Automatic Data Processing in a report on Tuesday, January 27th. They set an “overweight” rating and a $306.00 target price on the stock. Wells Fargo & Company cut their price target on Automatic Data Processing from $272.00 to $262.00 and set an “underweight” rating for the company in a report on Thursday, January 29th. JPMorgan Chase & Co. reduced their price target on Automatic Data Processing from $295.00 to $275.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Citigroup decreased their price objective on Automatic Data Processing from $303.00 to $265.00 and set a “neutral” rating on the stock in a research note on Thursday, January 29th. Finally, Morgan Stanley dropped their price objective on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a report on Thursday, January 29th. Two investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $290.00.

Automatic Data Processing Stock Performance

Automatic Data Processing stock opened at $208.52 on Friday. Automatic Data Processing, Inc. has a 1-year low of $203.26 and a 1-year high of $329.93. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. The firm has a market capitalization of $83.96 billion, a PE ratio of 20.05 and a beta of 0.86. The firm’s 50 day simple moving average is $234.58 and its 200 day simple moving average is $260.24.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, beating the consensus estimate of $2.57 by $0.05. The firm had revenue of $5.36 billion during 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 business’s quarterly revenue was up 6.2% compared to the same quarter last year. During the same period last year, the firm earned $2.35 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, analysts expect that Automatic Data Processing, Inc. will post 9.93 earnings per share for the current fiscal year.

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

Automatic Data Processing Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Investors 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 yield of 3.3%. Automatic Data Processing’s dividend payout ratio (DPR) is currently 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.