Zacks Research Issues Pessimistic Outlook for ADP Earnings

Automatic Data Processing, Inc. (NASDAQ:ADPFree Report) – Analysts at Zacks Research lowered their Q4 2025 EPS estimates for shares of Automatic Data Processing in a report released on Wednesday, May 21st. Zacks Research analyst R. Department now expects that the business services provider will earn $2.22 per share for the quarter, down from their previous estimate of $2.28. 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 2026 earnings at $2.47 EPS, Q3 2026 earnings at $3.14 EPS, Q4 2026 earnings at $2.63 EPS, Q2 2027 earnings at $2.93 EPS and Q3 2027 earnings at $3.22 EPS.

Several other analysts also recently issued reports on the stock. Barclays raised their price objective on shares of Automatic Data Processing from $325.00 to $350.00 and gave the stock an “overweight” rating in a research note on Monday, February 3rd. UBS Group raised their price objective on shares of Automatic Data Processing from $318.00 to $324.00 and gave the stock a “neutral” rating in a research note on Tuesday, March 4th. Jefferies Financial Group raised their price objective on shares of Automatic Data Processing from $290.00 to $305.00 and gave the stock a “hold” rating in a research note on Thursday, January 30th. Royal Bank of Canada reissued a “sector perform” rating and issued a $315.00 price objective on shares of Automatic Data Processing in a research note on Thursday, May 1st. Finally, Wall Street Zen downgraded shares of Automatic Data Processing from a “buy” rating to a “hold” rating in a research note on Wednesday, February 5th. One research analyst has rated the stock with a sell rating, eight have issued a hold rating and three have assigned a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $305.64.

Check Out Our Latest Stock Report on ADP

Automatic Data Processing Price Performance

ADP stock opened at $321.09 on Thursday. The stock has a market cap of $130.34 billion, a PE ratio of 33.48, a P/E/G ratio of 3.62 and a beta of 0.76. Automatic Data Processing has a 12 month low of $231.27 and a 12 month high of $323.66. The company has a 50-day moving average price of $301.13 and a 200 day moving average price of $301.11. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.59.

Automatic Data Processing (NASDAQ:ADPGet Free Report) last announced its earnings results on Wednesday, April 30th. The business services provider reported $3.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.97 by $0.09. The firm had revenue of $5.55 billion for the quarter, compared to analysts’ expectations of $5.49 billion. Automatic Data Processing had a net margin of 19.76% and a return on equity of 80.86%. The business’s revenue was up 5.7% compared to the same quarter last year. During the same period in the prior year, the company earned $2.88 EPS.

Automatic Data Processing Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, July 1st. Stockholders of record on Friday, June 13th will be given a dividend of $1.54 per share. This represents a $6.16 dividend on an annualized basis and a dividend yield of 1.92%. The ex-dividend date of this dividend is Friday, June 13th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 63.05%.

Insider Transactions at Automatic Data Processing

In other news, VP Brian L. Michaud sold 1,500 shares of the stock in a transaction that occurred on Tuesday, April 1st. The shares were sold at an average price of $305.38, for a total transaction of $458,070.00. Following the transaction, the vice president now directly owns 12,073 shares in the company, valued at approximately $3,686,852.74. This trade represents a 11.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Christopher D’ambrosio sold 478 shares of the stock in a transaction that occurred on Thursday, April 10th. The shares were sold at an average price of $293.14, for a total transaction of $140,120.92. Following the transaction, the vice president now owns 7,364 shares in the company, valued at approximately $2,158,682.96. This represents a 6.10% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 2,451 shares of company stock valued at $743,024. 0.21% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Automatic Data Processing

A number of hedge funds and other institutional investors have recently modified their holdings of ADP. Grassi Investment Management bought a new position in shares of Automatic Data Processing during the fourth quarter valued at approximately $227,000. Pure Financial Advisors LLC acquired a new stake in Automatic Data Processing in the fourth quarter valued at approximately $200,000. Sugar Maple Asset Management LLC acquired a new stake in Automatic Data Processing in the fourth quarter valued at approximately $37,000. Aspiriant LLC boosted its stake in Automatic Data Processing by 1.5% in the fourth quarter. Aspiriant LLC now owns 2,372 shares of the business services provider’s stock valued at $694,000 after acquiring an additional 36 shares in the last quarter. Finally, Transform Wealth LLC acquired a new stake in Automatic Data Processing in the fourth quarter valued at approximately $581,000. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Company Profile

(Get Free Report)

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.

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Earnings History and Estimates for Automatic Data Processing (NASDAQ:ADP)

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