Mitsubishi Ufj Asset Management Reduces $429M in Automatic Data Processing, Inc. ($ADP)
The firm cut its ADP holdings by 65%, now holding 1.02 million shares.
Key Points
- Mitsubishi Ufj Asset Management reduced its position in Automatic Data Processing, Inc. by 65%, selling 1.91 million shares.
- Shares of ADP traded at $223.55 on Sunday, with a market cap of $89.4 billion and a P/E ratio of 20.8.
- Recent insider activity at ADP includes planned sales by executives, with analysts maintaining mixed ratings.
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Mitsubishi Ufj Asset Management has significantly reduced its stake in Automatic Data Processing, Inc. (NasdaqGS: ADP), according to its latest filing with the SEC. The firm sold 1,906,099 shares, cutting its holdings by 65% to 1,023,615 shares. The remaining shares are valued at approximately $228.8 million as of the reporting period.
Mitsubishi Ufj Asset Management vs. the S&P 500
Hypothetical, simulated performance of disclosed positions vs. the S&P 500. Not realized profit and not investment advice. Past performance does not indicate future results. Details.
What Changed in Mitsubishi Ufj Asset Management's ADP Position
Mitsubishi Ufj Asset Management's recent filing shows a substantial decrease in its ADP holdings. The fund slashed its position by 65%, reducing its stake from 2,929,714 shares to 1,023,615 shares. This move reflects a strong sell-off, with the remaining shares valued at around $228.8 million.
Other Institutional Activity in ADP
Several other institutional investors also made notable changes to their ADP positions. BlackRock, Inc. decreased its holdings by 1,043,872 shares, ending with 35,499,016 shares worth about $7.21 billion, a 2.9% reduction. Vanguard Capital Management LLC opened a new position with 26,150,698 shares valued at approximately $5.31 billion. State Street Corp increased its stake by 385,962 shares to 19,326,803 shares, valued at $3.96 billion, marking a 2% increase. Geode Capital Management, LLC added 416,634 shares, bringing its total to 11,993,206 shares worth $2.44 billion, a 3.6% increase. Charles Schwab Investment Management Inc expanded its holdings by 9,147,649 shares, now holding 11,561,745 shares valued at $2.35 billion, a significant 378.9% increase.
Automatic Data Processing, Inc. Stock Down 21.8%
Shares of ADP were trading near $223.55 on Sunday. The company has a market capitalization of $89.4 billion and a P/E ratio of 20.8. Its forward P/E is 18.3, and it has a beta of 0.845, indicating lower volatility compared to the market. The stock's 52-week range is between $188.16 and $315.98, with a 50-day moving average of $216.35 and a 200-day moving average of $241.02.
$ADP stock price
Daily closing prices, year to date. Not investment advice.
Recent Earnings
In its latest earnings report, ADP posted revenue of $21.6 billion, reflecting a growth rate of 7%. The company achieved a net margin of 20.1% and a return on equity of 71.2%. Earnings per share came in at $10.73. ADP is set to announce its next earnings results on July 29, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
3 target cuts vs 1 raises.
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EPS & revenue
EPS beat estimates by 1.7%. Revenue beat estimates by 0.5%.
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Profit surprise
EBITDA met by 1 percent. Operating income met by 1 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
1 target raise, 3 target cuts.
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Earnings quality
Gross margin down 3.4 points. Operating margin up 0.7 points. Positive free cash flow.
Earnings Call Summary
ADP delivered solid first quarter results with 7 percent revenue growth and 7 percent adjusted earnings per share growth. Employer services bookings accelerated, with strong momentum in ADP Lyric HCM and Workforce Now Next-Gen capturing 80 percent of new mid-market sales. Pays per control rounded to zero percent as clients remained cautious about hiring. PEO revenue grew 7 percent, beating expectations, while the company made strategic progress with the Pequity compensation management acquisition and continued expansion of embedded payroll partnerships with Fiserv.
Guidance ADP reaffirmed its full year revenue growth of 5 to 6 percent and adjusted earnings per share growth of 8 to 10 percent. The company expects employer services revenue to grow 5 to 6 percent for the year, with flat pays per control. PEO revenue is expected to grow 5 to 7 percent, with worksite employee growth of 2 to 3 percent. Client funds interest revenue was raised by 10 million dollars to 1.30 to 1.32 billion dollars.
Clearly negative report. The company missed important expectations and likely triggers downward revisions.
Dividend
ADP offers an annual dividend rate of $6.80 per share, yielding 3.04%. The company's dividend payout ratio stands at 60.45%.
Insider Buying and Selling at Automatic Data Processing, Inc.
Recent insider transactions at ADP include several planned sales. On May 8, 2026, Executive VP Brian Michaud sold 848 shares at $212.13 each. On May 7, 2026, Robert Holmes Swan purchased 3,619 shares at $206.05 each. Corporate VP Christopher D'Ambrosio sold shares on multiple occasions, including 543 shares on April 14, 2026, at $195.74.
Analysts Set New Price Targets
Several analysts have recently maintained their ratings on ADP. On May 5, 2026, Argus Research maintained a 'buy' rating with a $240.0 price target. UBS and TD Cowen both maintained 'hold' ratings on April 30, 2026, with targets of $218.0 and $216.0, respectively. The consensus among 15 analysts is a 'hold' recommendation, with a mean price target of $246.8.
About Automatic Data Processing, Inc.
Automatic Data Processing, Inc. (ADP) provides cloud-based human capital management solutions worldwide. Operating in the Technology sector, ADP serves businesses through its Employer Services and Professional Employer Organization segments. The company offers platforms like ADP Workforce Now for managing payroll and HR tasks. Founded in 1949, ADP is headquartered in Roseland, New Jersey, and led by CEO Maria Black. It employs around 67,000 people.
Bottom Line
Mitsubishi Ufj Asset Management's decision to cut its stake in ADP by 65% is a significant move that investors are watching closely. While the filing reflects past holdings, it provides insights into institutional sentiment towards ADP. Investors should consider the company's recent performance and analyst ratings, which suggest a mixed outlook.
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