Automatic Data Processing, Inc. $ADP Stock Holdings Reduced by Fundsmith Investment Services LTD.

Fundsmith Investment Services LTD. reduced its stake in Automatic Data Processing, Inc. (NASDAQ:ADP) by 7.4% during the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 1,338,320 shares of the business services provider’s stock after selling 106,545 shares during the period. Automatic Data Processing accounts for about 6.3% of Fundsmith Investment Services LTD.’s holdings, making the stock its 8th biggest position. Fundsmith Investment Services LTD. owned 0.33% of Automatic Data Processing worth $344,256,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds also recently added to or reduced their stakes in ADP. Imprint Wealth LLC purchased a new position in Automatic Data Processing in the third quarter valued at approximately $25,000. Cornerstone Financial Management LLC purchased a new position in Automatic Data Processing in the fourth quarter valued at approximately $26,000. Bard Associates Inc. purchased a new position in Automatic Data Processing in the fourth quarter valued at approximately $28,000. Board of the Pension Protection Fund purchased a new position in Automatic Data Processing in the fourth quarter valued at approximately $31,000. Finally, Y.D. More Investments Ltd purchased a new position in Automatic Data Processing in the third quarter valued at approximately $32,000. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Automatic Data Processing Price Performance

Shares of NASDAQ ADP opened at $222.00 on Wednesday. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.04 and a quick ratio of 1.04. The stock has a fifty day moving average price of $213.32 and a 200 day moving average price of $228.75. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $315.98. The company has a market cap of $88.74 billion, a PE ratio of 20.71 and a beta of 0.84.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share for the quarter, topping the consensus estimate of $3.30 by $0.07. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The firm had revenue of $5.94 billion during the quarter, compared to the consensus estimate of $5.85 billion. During the same period last year, the company earned $3.06 earnings per share. The company’s revenue for the quarter was up 7.0% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. Sell-side analysts forecast that Automatic Data Processing, Inc. will post 11.07 EPS for the current year.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 12th will be issued a dividend of $1.70 per share. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.80 annualized dividend and a dividend yield of 3.1%. Automatic Data Processing’s dividend payout ratio (DPR) is currently 63.43%.

Analyst Ratings Changes

Several equities analysts have commented on the stock. Mizuho dropped their price target on shares of Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. TD Cowen upgraded shares of Automatic Data Processing to a “hold” rating in a research report on Monday, May 18th. Guggenheim began coverage on shares of Automatic Data Processing in a research report on Thursday, March 19th. They set a “buy” rating and a $270.00 target price on the stock. Cantor Fitzgerald lowered their target price on shares of Automatic Data Processing from $306.00 to $244.00 and set an “overweight” rating on the stock in a research report on Wednesday, April 29th. Finally, Jefferies Financial Group lowered their target price on shares of Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Automatic Data Processing currently has an average rating of “Hold” and a consensus price target of $244.29.

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.