Verity & Verity 13F: Cuts ADP Stake by $556K
Key Points
- Verity & Verity cut its ADP stake by 67.6% in a Form 13F filing on October 23, 2026, dropping 2,155 shares to hold 1,033 shares.
- Other large investment managers also adjusted positions, with Ninety One UK trimming its stake by 14.7% to 2,329,634 shares worth about $601.2 million.
- Automatic Data Processing shares recently traded around $304.16, sitting just below their 52-week high of $308.63.
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Verity & Verity reduced its position in Automatic Data Processing, Inc. (NasdaqGS: ADP) by 67.6% during the quarter, according to a Form 13F filing with the SEC on October 23, 2026. The firm sold 2,155 shares, leaving it with 1,033 shares valued at approximately $266,576. Prior to this adjustment, the fund held 3,188 shares. Automatic Data Processing closed at $304.16 on the day of the filing.
ADP
Automatic Data Processing, Inc.
Other Institutional Activity in Automatic Data Processing, Inc.
Other major investment managers also shifted their positions in the payroll and human resource solutions provider around the same period. Ninety One UK grew its holdings by selling 400,887 shares, ending with 2,329,634 shares worth about $601.2 million, which marked a 14.7% decrease. Mitsubishi Ufj Asset Management lowered its stake by 65.1%, reducing holdings by 1,906,099 shares to finish with 1,023,615 shares valued at about $230.2 million. Fundsmith cut its position by 7.7%, shedding 322,864 shares to end with 3,855,105 shares worth approximately $857.6 million. Trexquant Investment grew its investment by 268.2%, adding 168,047 shares to hold 230,705 shares valued at about $51.3 million. Meanwhile, California State Teachers Retirement System trimmed its holdings by 2.4%, reducing its stake by 15,681 shares to finish with 633,103 shares worth about $140.8 million.
Automatic Data Processing, Inc. Stock Up 3.3%
ADP shares recently traded around $304.16 as of October 24, 2026, matching the closing price recorded when the filing was made. The stock trades well above its 50-day and 200-day moving averages and sits close to its 52-week peak of $308.63.
Recent Earnings
The company reported trailing twelve month revenue of $21.95 billion and earnings of $10.94 per share. Its next quarterly report is slated for October 28, 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 pays an annual dividend of $6.80 per share, giving investors a yield of 2.21%.
Insider Buying and Selling at Automatic Data Processing, Inc.
Company insiders were active in the market prior to the filing. CEO Maria Black disposed of 29,810 shares on September 2, 2026, for a total value of $8,373,873. Other officers also trimmed their holdings during early September.
Analysts Set New Price Targets
Wall Street firms have updated their outlooks on the stock, with Guggenheim maintaining a Buy rating and raising its target to $340.00 on October 23, 2026. Analysts hold a consensus hold rating with a mean target price of $289.07.
About Automatic Data Processing, Inc.
Automatic Data Processing provides cloud-based human capital management software and payroll services to businesses around the world. Its platform helps companies handle HR tasks, talent management, and benefits administration.
Bottom Line
Investors will watch the upcoming earnings release on October 28, 2026, for further insight into the company's financial health. Future institutional filings will show whether other major funds follow Verity & Verity in trimming their exposure.
Related Filing Alerts
Source: Verity & Verity's 13F filing on $ADP (Oct 23, 2026). 13F filings show holdings as of the end of the reporting quarter and may not reflect the fund's current position. Written by software, not financial advice. How we make alerts