Zacks Research Issues Pessimistic Forecast for ADP Earnings

Automatic Data Processing, Inc. (NASDAQ:ADP) – Stock analysts at Zacks Research lowered their Q2 2025 EPS estimates for shares of Automatic Data Processing in a report issued on Wednesday, November 20th. Zacks Research analyst R. Department now expects that the business services provider will post earnings of $2.27 per share for the quarter, down from their prior estimate of $2.34. The consensus estimate for Automatic Data Processing’s current full-year earnings is $9.94 per share. Zacks Research also issued estimates for Automatic Data Processing’s Q3 2025 earnings at $3.02 EPS, Q4 2025 earnings at $2.30 EPS, FY2025 earnings at $9.92 EPS, Q1 2026 earnings at $2.46 EPS, Q2 2026 earnings at $2.61 EPS, Q3 2026 earnings at $2.96 EPS, Q4 2026 earnings at $2.73 EPS, FY2026 earnings at $10.75 EPS, Q1 2027 earnings at $2.65 EPS and FY2027 earnings at $11.69 EPS.

A number of other equities research analysts have also commented on ADP. Royal Bank of Canada upped their price target on shares of Automatic Data Processing from $267.00 to $315.00 and gave the company a “sector perform” rating in a report on Thursday, October 31st. Barclays upped their price target on shares of Automatic Data Processing from $310.00 to $325.00 and gave the company an “overweight” rating in a report on Monday, November 4th. Citigroup upped their price target on shares of Automatic Data Processing from $260.00 to $295.00 and gave the company a “neutral” rating in a report on Wednesday, September 25th. TD Cowen boosted their price objective on shares of Automatic Data Processing from $276.00 to $285.00 and gave the company a “hold” rating in a research report on Friday, November 1st. Finally, UBS Group boosted their price objective on shares of Automatic Data Processing from $270.00 to $295.00 and gave the company a “neutral” rating in a research report on Tuesday, October 22nd. Two analysts have rated the stock with a sell rating, nine have assigned a hold rating and two have assigned a buy rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $289.91.

Automatic Data Processing Trading Up 2.0 %

NASDAQ:ADP opened at $304.69 on Friday. The company has a fifty day moving average of $288.99 and a 200 day moving average of $265.44. Automatic Data Processing has a 52 week low of $227.12 and a 52 week high of $309.37. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.56. The firm has a market capitalization of $124.15 billion, a P/E ratio of 32.52, a P/E/G ratio of 3.46 and a beta of 0.79.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Wednesday, October 30th. The business services provider reported $2.33 earnings per share for the quarter, topping analysts’ consensus estimates of $2.21 by $0.12. The firm had revenue of $4.83 billion during the quarter, compared to analyst estimates of $4.77 billion. Automatic Data Processing had a net margin of 19.72% and a return on equity of 82.36%. The business’s quarterly revenue was up 7.1% on a year-over-year basis. During the same period in the previous year, the business posted $2.08 EPS.

Automatic Data Processing Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, January 1st. Stockholders of record on Friday, December 13th will be issued a dividend of $1.54 per share. This represents a $6.16 annualized dividend and a dividend yield of 2.02%. This is a positive change from Automatic Data Processing’s previous quarterly dividend of $1.40. The ex-dividend date of this dividend is Friday, December 13th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 65.74%.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, Director Carlos A. Rodriguez sold 9,203 shares of Automatic Data Processing stock in a transaction dated Friday, September 6th. The shares were sold at an average price of $269.45, for a total value of $2,479,748.35. Following the completion of the transaction, the director now directly owns 36,741 shares of the company’s stock, valued at approximately $9,899,862.45. The trade was a 20.03 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Sreenivasa Kutam sold 38,975 shares of the stock in a transaction that occurred on Wednesday, November 6th. The shares were sold at an average price of $300.00, for a total transaction of $11,692,500.00. Following the sale, the vice president now owns 32,604 shares in the company, valued at approximately $9,781,200. The trade was a 54.45 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 96,946 shares of company stock valued at $27,462,781 in the last ninety days. 0.21% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of ADP. Crewe Advisors LLC bought a new stake in Automatic Data Processing in the 1st quarter worth approximately $33,000. Canada Pension Plan Investment Board grew its holdings in shares of Automatic Data Processing by 136.9% in the first quarter. Canada Pension Plan Investment Board now owns 437,347 shares of the business services provider’s stock worth $109,223,000 after acquiring an additional 252,738 shares during the period. Guardian Capital Advisors LP grew its holdings in shares of Automatic Data Processing by 3.3% in the first quarter. Guardian Capital Advisors LP now owns 2,117 shares of the business services provider’s stock worth $514,000 after acquiring an additional 67 shares during the period. LRI Investments LLC purchased a new stake in Automatic Data Processing during the first quarter valued at $286,000. Finally, Epoch Investment Partners Inc. lifted its holdings in Automatic Data Processing by 11.9% in the first quarter. Epoch Investment Partners Inc. now owns 426,738 shares of the business services provider’s stock valued at $106,574,000 after acquiring an additional 45,338 shares during the period. Hedge funds and other institutional investors own 80.03% of the company’s stock.

About Automatic Data Processing

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.