Zacks Research Has Optimistic Outlook of ADP Q3 Earnings

Automatic Data Processing, Inc. (NASDAQ:ADP) – Equities researchers at Zacks Research boosted their Q3 2026 earnings per share (EPS) estimates for shares of Automatic Data Processing in a note issued to investors on Wednesday, February 19th. Zacks Research analyst R. Department now expects that the business services provider will earn $2.99 per share for the quarter, up from their prior estimate of $2.96. The consensus estimate for Automatic Data Processing’s current full-year earnings is $9.93 per share. Zacks Research also issued estimates for Automatic Data Processing’s Q1 2027 earnings at $2.69 EPS, Q2 2027 earnings at $2.88 EPS and FY2027 earnings at $11.75 EPS.

Several other brokerages have also commented on ADP. Mizuho raised their price target on shares of Automatic Data Processing from $281.00 to $310.00 and gave the company an “outperform” rating in a research note on Monday, November 4th. TD Cowen raised their target price on Automatic Data Processing from $276.00 to $285.00 and gave the company a “hold” rating in a research report on Friday, November 1st. Jefferies Financial Group raised their target price on Automatic Data Processing from $290.00 to $305.00 and gave the company a “hold” rating in a research report on Thursday, January 30th. Barclays raised their price target on Automatic Data Processing from $325.00 to $350.00 and gave the company an “overweight” rating in a report on Monday, February 3rd. Finally, StockNews.com lowered Automatic Data Processing from a “buy” rating to a “hold” rating in a report on Wednesday, February 5th. Two investment analysts have rated the stock with a sell rating, eight have given a hold rating and two have issued a buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $293.55.

Automatic Data Processing Stock Down 0.4 %

ADP stock opened at $310.76 on Monday. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.59. Automatic Data Processing has a fifty-two week low of $231.27 and a fifty-two week high of $313.72. The firm’s 50-day simple moving average is $298.72 and its 200 day simple moving average is $290.54. The stock has a market cap of $126.62 billion, a PE ratio of 32.40, a price-to-earnings-growth ratio of 3.63 and a beta of 0.79.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, January 29th. The business services provider reported $2.35 earnings per share for the quarter, topping the consensus estimate of $2.30 by $0.05. Automatic Data Processing had a return on equity of 80.86% and a net margin of 19.76%.

Automatic Data Processing Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 1st. Stockholders of record on Friday, March 14th will be paid a $1.54 dividend. The ex-dividend date of this dividend is Friday, March 14th. This represents a $6.16 annualized dividend and a dividend yield of 1.98%. Automatic Data Processing’s dividend payout ratio is currently 64.23%.

Insider Buying and Selling

In related news, VP David Foskett sold 1,067 shares of Automatic Data Processing stock in a transaction dated Monday, January 13th. The stock was sold at an average price of $286.15, for a total value of $305,322.05. Following the transaction, the vice president now owns 6,140 shares of the company’s stock, valued at approximately $1,756,961. This trade represents a 14.81 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Jonathan S. Lehberger sold 2,324 shares of Automatic Data Processing stock in a transaction dated Monday, February 3rd. The stock was sold at an average price of $303.30, for a total value of $704,869.20. Following the completion of the transaction, the vice president now directly owns 3,063 shares in the company, valued at $929,007.90. This represents a 43.14 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 5,478 shares of company stock worth $1,617,241 in the last ninety days. 0.21% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Ascent Group LLC grew its stake in Automatic Data Processing by 14.1% during the 4th quarter. Ascent Group LLC now owns 9,550 shares of the business services provider’s stock valued at $2,796,000 after acquiring an additional 1,181 shares in the last quarter. Putney Financial Group LLC purchased a new position in shares of Automatic Data Processing during the 4th quarter valued at $439,000. Aurdan Capital Management LLC purchased a new position in Automatic Data Processing in the fourth quarter valued at about $3,089,000. Forum Financial Management LP grew its stake in Automatic Data Processing by 11.4% in the fourth quarter. Forum Financial Management LP now owns 4,755 shares of the business services provider’s stock valued at $1,392,000 after purchasing an additional 485 shares in the last quarter. Finally, GF Fund Management CO. LTD. purchased a new position in Automatic Data Processing in the fourth quarter valued at about $22,605,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

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.