Zacks Research Issues Pessimistic Estimate for ADP Earnings

Automatic Data Processing, Inc. (NASDAQ:ADP) – Equities researchers at Zacks Research lowered their Q2 2025 earnings per share estimates for Automatic Data Processing in a research report issued on Wednesday, November 20th. Zacks Research analyst R. Department now anticipates 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.

Several other equities research analysts also recently commented on ADP. JPMorgan Chase & Co. boosted their price objective on Automatic Data Processing from $250.00 to $285.00 and gave the company an “underweight” rating in a report on Tuesday, August 20th. Citigroup boosted their price objective on Automatic Data Processing from $260.00 to $295.00 and gave the company a “neutral” rating in a report on Wednesday, September 25th. Bank of America boosted their price objective on Automatic Data Processing from $250.00 to $267.00 and gave the company a “neutral” rating in a report on Thursday, August 1st. StockNews.com downgraded Automatic Data Processing from a “buy” rating to a “hold” rating in a report on Thursday, September 19th. Finally, Barclays boosted their price objective on Automatic Data Processing from $310.00 to $325.00 and gave the company an “overweight” rating in a report on Monday, November 4th. Two analysts have rated the stock with a sell rating, nine have assigned a hold rating and two have given a buy rating to the stock. According to MarketBeat, Automatic Data Processing has an average rating of “Hold” and a consensus price target of $289.91.

Automatic Data Processing Trading Up 2.0 %

NASDAQ ADP opened at $304.69 on Friday. The company has a market cap of $124.15 billion, a price-to-earnings ratio of 32.52, a P/E/G ratio of 3.46 and a beta of 0.79. Automatic Data Processing has a 52 week low of $227.12 and a 52 week high of $309.37. The business has a 50 day moving average price of $288.99 and a 200-day moving average price of $265.44. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.56.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results 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 business had revenue of $4.83 billion during the quarter, compared to the consensus estimate of $4.77 billion. Automatic Data Processing had a return on equity of 82.36% and a net margin of 19.72%. The firm’s revenue for the quarter was up 7.1% on a year-over-year basis. During the same period in the previous year, the company posted $2.08 earnings per share.

Automatic Data Processing Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 1st. Shareholders of record on Friday, December 13th will be given a $1.54 dividend. The ex-dividend date is Friday, December 13th. This represents a $6.16 annualized dividend and a yield of 2.02%. This is a boost from Automatic Data Processing’s previous quarterly dividend of $1.40. Automatic Data Processing’s payout ratio is currently 65.74%.

Insiders Place Their Bets

In other news, CEO Maria Black sold 19,147 shares of Automatic Data Processing stock in a transaction dated Tuesday, September 3rd. The shares were sold at an average price of $274.38, for a total value of $5,253,553.86. Following the completion of the transaction, the chief executive officer now owns 92,807 shares in the company, valued at $25,464,384.66. This trade represents a 17.10 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Don Mcguire sold 3,179 shares of Automatic Data Processing stock in a transaction dated Tuesday, September 3rd. The stock was sold at an average price of $274.38, for a total transaction of $872,254.02. Following the completion of the transaction, the vice president now owns 41,696 shares of the company’s stock, valued at $11,440,548.48. The trade was a 7.08 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 96,946 shares of company stock valued at $27,462,781. Insiders own 0.21% of the company’s stock.

Hedge Funds Weigh In On Automatic Data Processing

Several hedge funds have recently bought and sold shares of the company. Itau Unibanco Holding S.A. bought a new stake in Automatic Data Processing during the third quarter valued at approximately $26,000. Kiely Wealth Advisory Group Inc. bought a new stake in Automatic Data Processing during the second quarter valued at approximately $27,000. Dunhill Financial LLC lifted its position in Automatic Data Processing by 346.5% during the third quarter. Dunhill Financial LLC now owns 106 shares of the business services provider’s stock valued at $29,000 after purchasing an additional 149 shares during the last quarter. Hexagon Capital Partners LLC lifted its position in Automatic Data Processing by 78.5% during the third quarter. Hexagon Capital Partners LLC now owns 116 shares of the business services provider’s stock valued at $32,000 after purchasing an additional 51 shares during the last quarter. Finally, Crewe Advisors LLC bought a new stake in Automatic Data Processing during the first quarter valued at approximately $33,000. Hedge funds and other institutional investors own 80.03% of the company’s stock.

Automatic Data Processing Company Profile

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.