Fundsmith 13F: Cuts Automatic Data Processing (ADP) Stake by $72M

Fundsmith Scales Back ADP Holdings

Fundsmith trimmed its stake in Automatic Data Processing, Inc. (NasdaqGS: ADP) during the period, selling 322,864 shares to bring its total investment down. The move lowered the fund's holdings by 7.7% compared to the prior period. That left the firm with 3,855,105 shares, which carried a reported value of approximately $857.6 million at the time of the filing. Because 13F filings look backward at a specific point in time, this report captures positions as of May 15, 2026, and may not reflect the fund's current holdings today.

ADP Stock Performance and Market Standing

Shares of the payroll and human resources software provider change hands well above their 52-week low of $188.16, moving toward the upper end of their annual range near $294.35. The company operates with a trailing P/E ratio of 24.7 and a forward P/E of 20.1, reflecting steady earnings expectations for the software firm.

Analysts Set New Price Targets

Wall Street firms have kept a close eye on the stock through the summer. On July 22, 2026, UBS maintained a neutral rating and set a $270.00 price target. Several firms updated their targets a week later on July 30, 2026, with Guggenheim maintaining a buy rating and a $300.00 target, while Stifel kept a hold rating alongside a $285.00 target. Wells Fargo maintained an equal-weight rating with a $283.00 target, Morgan Stanley kept an equal-weight rating with a $286.00 target, and Citigroup maintained a neutral rating with a $287.00 target. Cantor Fitzgerald later reiterated an overweight rating with a $310.00 price target on August 5, 2026, following an earlier update on August 3. Across 15 analyst opinions, the stock carries a consensus hold rating and a mean price target of $287.60.

Human Capital Management Solutions

Headquartered in Roseland, New Jersey, Automatic Data Processing provides cloud-based human capital management solutions to businesses around the world. The company serves clients through two main segments, Employer Services and Professional Employer Organization solutions. Its platforms help businesses handle payroll, employee benefits, talent management, and compliance.

Looking Ahead for Fundsmith and ADP

Investors tracking the fund's activity will need to wait for subsequent quarterly disclosures to see whether the reduction was part of a broader portfolio shift. Meanwhile, market participants can look toward the company's next earnings report, which is scheduled for October 28, 2026.