Zacks Research Issues Negative Forecast for ADP Earnings

Automatic Data Processing, Inc. (NASDAQ:ADP) – Analysts at Zacks Research lowered their Q2 2025 earnings estimates for Automatic Data Processing in a report released on Wednesday, November 20th. Zacks Research analyst R. Department now expects that the business services provider will earn $2.27 per share for the quarter, down from their prior forecast 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.

Other research analysts also recently issued research reports about the stock. Bank of America lifted their target price on shares of Automatic Data Processing from $250.00 to $267.00 and gave the stock a “neutral” rating in a report on Thursday, August 1st. 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 report on Friday, November 1st. Barclays boosted their target price on shares of Automatic Data Processing from $310.00 to $325.00 and gave the stock an “overweight” rating in a research report on Monday, November 4th. Jefferies Financial Group boosted their price objective on shares of Automatic Data Processing from $260.00 to $290.00 and gave the stock a “hold” rating in a report on Tuesday, October 22nd. Finally, Stifel Nicolaus increased their target price on shares of Automatic Data Processing from $271.00 to $287.00 and gave the company a “hold” rating in a research note on Thursday, August 1st. Two analysts have rated the stock with a sell rating, nine have assigned a hold rating and two have issued a buy rating to the stock. According to data from MarketBeat, Automatic Data Processing presently has a consensus rating of “Hold” and a consensus price target of $289.91.

Automatic Data Processing Trading Up 0.2 %

Automatic Data Processing stock opened at $305.15 on Friday. Automatic Data Processing has a one year low of $227.12 and a one year high of $309.37. The company’s fifty day moving average price is $289.55 and its two-hundred day moving average price is $265.87. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.01 and a quick ratio of 1.01. The company has a market capitalization of $124.34 billion, a price-to-earnings ratio of 32.57, a PEG ratio of 3.46 and a beta of 0.79.

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

Automatic Data Processing Increases Dividend

The company 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. This represents a $6.16 dividend on an annualized basis and a yield of 2.02%. This is a positive change from Automatic Data Processing’s previous quarterly dividend of $1.40. The ex-dividend date is Friday, December 13th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 65.74%.

Insider Activity

In other news, VP Sreenivasa Kutam sold 38,975 shares of the company’s stock in a transaction dated Wednesday, November 6th. The stock was sold at an average price of $300.00, for a total value of $11,692,500.00. Following the completion of the sale, the vice president now directly owns 32,604 shares of the company’s stock, valued at $9,781,200. This represents a 54.45 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Michael A. Bonarti sold 26,442 shares of Automatic Data Processing stock in a transaction on Monday, August 26th. The stock was sold at an average price of $270.96, for a total transaction of $7,164,724.32. Following the transaction, the vice president now directly owns 88,426 shares in the company, valued at approximately $23,959,908.96. This represents a 23.02 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 96,946 shares of company stock valued at $27,462,781. Company insiders own 0.21% of the company’s stock.

Institutional Trading of Automatic Data Processing

A number of institutional investors have recently modified their holdings of ADP. Accredited Investors Inc. grew its position in Automatic Data Processing by 4,431.5% in the third quarter. Accredited Investors Inc. now owns 2,315,295 shares of the business services provider’s stock valued at $640,712,000 after purchasing an additional 2,264,202 shares in the last quarter. BlueSpruce Investments LP acquired a new position in shares of Automatic Data Processing during the 1st quarter worth about $365,757,000. International Assets Investment Management LLC grew its holdings in shares of Automatic Data Processing by 28,478.6% in the 3rd quarter. International Assets Investment Management LLC now owns 1,194,587 shares of the business services provider’s stock valued at $3,305,780,000 after acquiring an additional 1,190,407 shares in the last quarter. Holocene Advisors LP bought a new position in shares of Automatic Data Processing in the 3rd quarter valued at about $160,920,000. Finally, Jacobs Levy Equity Management Inc. increased its position in shares of Automatic Data Processing by 238.1% in the first quarter. Jacobs Levy Equity Management Inc. now owns 784,003 shares of the business services provider’s stock valued at $195,797,000 after acquiring an additional 552,096 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors.

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.