Zacks Research Issues Negative Estimate for ADP Earnings

Automatic Data Processing, Inc. (NASDAQ:ADP) – Research analysts at Zacks Research reduced their Q3 2025 earnings per share (EPS) estimates for shares of Automatic Data Processing in a report released on Wednesday, February 19th. Zacks Research analyst R. Department now expects that the business services provider will post earnings of $2.94 per share for the quarter, down from their previous estimate of $3.02. 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 Q4 2025 earnings at $2.28 EPS, FY2025 earnings at $9.90 EPS, Q2 2026 earnings at $2.57 EPS, Q4 2026 earnings at $2.70 EPS and FY2026 earnings at $10.72 EPS.

Several other research firms have also recently issued reports on ADP. Royal Bank of Canada reiterated a “sector perform” rating and set a $315.00 target price on shares of Automatic Data Processing in a research report on Thursday, January 30th. Mizuho boosted their target price on Automatic Data Processing from $281.00 to $310.00 and gave the stock an “outperform” rating in a research report on Monday, November 4th. TD Cowen upped their price target on Automatic Data Processing from $276.00 to $285.00 and gave the stock a “hold” rating in a report on Friday, November 1st. Barclays upped their price target on Automatic Data Processing from $325.00 to $350.00 and gave the stock an “overweight” rating in a report on Monday, February 3rd. Finally, Jefferies Financial Group upped their price target on Automatic Data Processing from $290.00 to $305.00 and gave the stock a “hold” rating in a report on Thursday, January 30th. Two research analysts have rated the stock with a sell rating, eight have given a hold rating and two have issued a buy rating to the stock. According to data from MarketBeat, Automatic Data Processing presently has an average rating of “Hold” and an average target price of $293.55.

Automatic Data Processing Stock Performance

NASDAQ ADP opened at $310.76 on Friday. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.59. The business’s 50 day moving average is $298.72 and its two-hundred day moving average is $290.32. Automatic Data Processing has a 12-month low of $231.27 and a 12-month high of $313.72. The stock has a market capitalization of $126.62 billion, a price-to-earnings ratio of 32.40, a PEG ratio of 3.63 and a beta of 0.79.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, January 29th. The business services provider reported $2.35 earnings per share (EPS) 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 Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, April 1st. Shareholders of record on Friday, March 14th will be issued a dividend of $1.54 per share. This represents a $6.16 dividend on an annualized basis and a yield of 1.98%. The ex-dividend date is Friday, March 14th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 64.23%.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP Jonathan S. Lehberger sold 2,324 shares of the stock in a transaction on Monday, February 3rd. The stock was sold at an average price of $303.30, for a total transaction of $704,869.20. Following the transaction, the vice president now owns 3,063 shares of the company’s stock, valued at $929,007.90. This represents a 43.14 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, VP Brian L. Michaud sold 362 shares of the stock in a transaction on Thursday, January 2nd. The stock was sold at an average price of $293.83, for a total value of $106,366.46. Following the transaction, the vice president now directly owns 13,706 shares in the company, valued at approximately $4,027,233.98. This represents a 2.57 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 5,478 shares of company stock worth $1,617,241. 0.21% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Moloney Securities Asset Management LLC purchased a new position in shares of Automatic Data Processing during the 3rd quarter worth $209,000. Littlejohn Financial Services Inc. purchased a new position in shares of Automatic Data Processing during the 4th quarter worth $708,000. Nomura Asset Management Co. Ltd. lifted its stake in shares of Automatic Data Processing by 5.8% during the 3rd quarter. Nomura Asset Management Co. Ltd. now owns 280,961 shares of the business services provider’s stock worth $77,750,000 after purchasing an additional 15,340 shares during the period. RIA Advisory Group LLC purchased a new position in shares of Automatic Data Processing during the 3rd quarter worth $470,000. Finally, Dash Acquisitions Inc. lifted its stake in shares of Automatic Data Processing by 5.6% during the 3rd quarter. Dash Acquisitions Inc. now owns 52,329 shares of the business services provider’s stock worth $15,069,000 after purchasing an additional 2,781 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.