I have been in the SDPstock program for a few years. With the ones I get in July I will have about 150 shares. Do most people sell them when they convert? I do not feel good about having all my eggs in one basket right now. But I am not super savvy with this.
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ADP stock took a huge hit the last 12-15 months, as did most HCM software companies. Workday lost even more of their value, although they are built for bigger swings in price. Hanging at ~$224 today, it is still down and slowly making a comeback. I would hold until closer to the target price, and then think about selling a portion to invest elsewhere if that is what you want. There isn't anything that says you cannot just hold ADP stock until you retire. They are a blue chip company that is built for more modest gains and modest losses. This is why ADP fared better than many other HCM companies recently. Just know that you will have to pay taxes on the capital gains from your sell of the stock, so make sure you account for that, come tax season.
I’ve kept all of my stock, but it’s only about 10% of my portfolio. I have shares from 20 years ago that I bought at around $15 a share (after the stock split). I had more than $2,000 in dividends last year, too.
All eggs in one basket? Is this your retirement? If not, depending on other allocations (IRA, 401K etc…) you should talk to an advisor on your diversification.
I would sell some shares and diversify. You don’t want that much in one stock especially if your employer.
@OP I keep some and convert some.