California State Teachers Retirement System 13F: Cuts ADP Stake by $3.5M

CalSTRS Cuts ADP Stake

The California State Teachers Retirement System (CalSTRS) trimmed its stake in Automatic Data Processing, Inc. (ADP) by 15,681 shares, bringing its total holdings down to 633,103 shares valued at approximately $141.9 million, according to its latest Form 13F filing with the SEC. This filing reflects the fund's holdings as of May 18, 2026.

A Shift in Position

CalSTRS reduced its position in ADP by about 2.4%. This move comes as the pension fund seeks to adjust its portfolio amid changing market conditions. The reduction suggests a strategic decision rather than a complete exit, as CalSTRS continues to hold a substantial number of shares in the company.

Institutional Activity

While no other funds reported changes in their ADP positions during this period, CalSTRS' decision aligns with recent trends among institutional investors. For instance, on the same day, CalSTRS also trimmed its stakes in other companies, indicating a broader reevaluation of its investment strategy.

How ADP Stock Has Traded

ADP shares were trading at $224.10 on the day this article was published, which is considerably lower than its 52-week high of $294.35. This decline may affect investor sentiment as the stock navigates through a volatile market. The stock is also trading below its 200-day moving average of $237.93, which could signal potential challenges ahead.

Analysts Set New Price Targets

On August 5, 2026, Cantor Fitzgerald reiterated its 'Overweight' rating for ADP with a price target of $310. Earlier, on July 30, multiple firms including Citigroup and Morgan Stanley maintained their ratings, with Citigroup setting a target of $287 and Morgan Stanley at $286. The consensus recommendation for ADP remains a 'Hold', with a mean price target of $287.60 based on 15 analyst opinions.

What ADP Does

Automatic Data Processing, Inc. provides cloud-based human capital management solutions, offering services that range from payroll to HR outsourcing. This strategic trimming by CalSTRS may reflect its outlook on the company's performance amid current market conditions.

What's Ahead for ADP

ADP's next earnings report is expected on October 28, 2026. Investors will be watching closely for any further developments or adjustments from institutional investors like CalSTRS. As a reminder, the 13F filing reflects holdings as of the reporting period and may not represent the investor's current position.