Fundsmith LLP Sells 1,253,538 Shares of Automatic Data Processing, Inc. $ADP

Fundsmith LLP decreased its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 32.5% in the second quarter, HoldingsChannel.com reports. The institutional investor owned 2,601,567 shares of the business services provider’s stock after selling 1,253,538 shares during the period. Automatic Data Processing comprises approximately 4.3% of Fundsmith LLP’s holdings, making the stock its 12th biggest position. Fundsmith LLP’s holdings in Automatic Data Processing were worth $582,621,000 at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in the stock. BlackRock Inc. purchased a new position in shares of Automatic Data Processing during the 2nd quarter valued at about $8,097,229,000. Bank of America Corp DE purchased a new stake in Automatic Data Processing in the 2nd quarter worth approximately $1,231,175,000. Deutsche Bank AG purchased a new stake in Automatic Data Processing in the 2nd quarter worth approximately $994,937,000. Northwestern Mutual Wealth Management Co. raised its stake in Automatic Data Processing by 6,493.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider’s stock worth $892,120,000 after acquiring an additional 3,415,576 shares during the period. Finally, Bank of New York Mellon Corp bought a new stake in Automatic Data Processing during the 2nd quarter worth approximately $725,513,000. Institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Stock Performance

Automatic Data Processing stock opened at $287.48 on Monday. The stock has a market cap of $114.20 billion, a P/E ratio of 26.28 and a beta of 0.81. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05. Automatic Data Processing, Inc. has a 1 year low of $188.16 and a 1 year high of $305.31. The firm’s 50 day moving average price is $256.03 and its 200-day moving average price is $227.98.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, topping analysts’ consensus estimates of $2.59 by $0.05. The firm had revenue of $5.47 billion during the quarter, compared to analyst estimates of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. Automatic Data Processing’s revenue for the quarter was up 6.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, equities analysts predict that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Friday, September 11th will be paid a $1.70 dividend. The ex-dividend date is Friday, September 11th. This represents a $6.80 annualized dividend and a yield of 2.4%. Automatic Data Processing’s payout ratio is presently 62.16%.

Wall Street Analyst Weigh In

A number of research firms have weighed in on ADP. Citigroup upped their price target on shares of Automatic Data Processing from $230.00 to $287.00 and gave the stock a “neutral” rating in a research report on Thursday, July 30th. Argus decreased their price objective on shares of Automatic Data Processing from $300.00 to $240.00 and set a “buy” rating on the stock in a research report on Tuesday, May 5th. Guggenheim lifted their target price on shares of Automatic Data Processing from $270.00 to $300.00 and gave the company a “buy” rating in a research note on Thursday, July 30th. UBS Group upped their target price on shares of Automatic Data Processing from $260.00 to $270.00 and gave the stock a “neutral” rating in a report on Wednesday, July 22nd. Finally, Stifel Nicolaus boosted their price objective on Automatic Data Processing from $260.00 to $285.00 and gave the company a “hold” rating in a research report on Thursday, July 30th. Three research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued 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 $273.50.

Insider Activity

In other Automatic Data Processing news, VP David Kwon sold 2,414 shares of the stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $265.62, for a total transaction of $641,206.68. Following the completion of the transaction, the vice president owned 9,660 shares of the company’s stock, valued at $2,565,889.20. This represents a 19.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian L. Michaud sold 120 shares of Automatic Data Processing stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $279.70, for a total value of $33,564.00. Following the completion of the sale, the vice president directly owned 18,442 shares in the company, valued at $5,158,227.40. This trade represents a 0.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 3,332 shares of company stock valued at $898,211 in the last three months. Insiders own 0.20% of the company’s stock.

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.