A Technical View of the Automatic Data Processing Inc. (ADP)?

Automatic Data Processing Inc. (NASDAQ:ADP) saw an upside of 0.04% to close Tuesday at $203.84 after adding $0.09 on the day. The 5-day average trading volume is 1,175,540 shares of the company’s common stock. It has gained $208.81 in the past week. An average of 1,353,230 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 1,450,714.

ADP’s 1-month performance is 1.92% or $3.01 on its low of $196.10 reached on 09/20/21. The company’s shares have touched a 52-week low of $144.59 and high of $217.15, with the stock’s rally to the 52-week high happening on 08/10/21. YTD, ADP has achieved 15.69% or $27.64. However, the current price is down -6.13%% from the 52-week high price.


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Insider Transactions

On Oct 01, 12 days have gone by since the last insider trading activity for Automatic Data Processing Inc. (ADP). Brown Laura G (Corp. VP) most recently sold 1,490 shares at $200.51 per share on Oct 01. This transaction cost the insider $298,760. President & CEO, Rodriguez Carlos A, sold 48,572 shares at a price of $204.41 on Sep 08. Then, on Sep 03, Corp. VP Ayala John sold 37,749 shares at a price of $204.50 per share. This transaction amounted to $7,719,670.

Valuation Metrics

The company’s PE ratio for the last five years has touched a high of 38.55 and a low of 19.27. ADP stock has a beta of 0.75. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 5.78 while the price-to-book (PB) in the most recent quarter is 15.22, with the price to cash flow ratio at 64.78.

Automatic Data Processing Inc. pays an annual dividend of $3.72 per share. Its dividend yield is 1.82% and the payout ratio is 60.40%. ADP’s most recent quarterly dividend payment was made on Oct. 1, when it paid $0.93 a share compared with prior rate of $0.93, down 0.0% from last year’s. The company has boosted its dividend for the last 47 consecutive years with the latest dividend increase of $0.02 reported on Wednesday November 11 2020. Measured over the last 3 years, the Dividend has been growing by 56.41% yearly.

It is projected that Automatic Data Processing Inc.’s next ex-dividend date will be on 9-Dec-2021. ADP is expected to distribute $0.93 as its next dividend.

Automatic Data Processing Inc.’s quick ratio for the period ended June 29 was 1.10, with the current ratio over the same period at 1.10 meaning that ADP stock is able to fulfill its debt obligations. As well, the company’s long term debt to equity for the quarter ending June 29 was 0.53, while the total debt to equity was 0.53. In terms of profitability, the gross margin trailing 12 months is 42.60%. while for the period ending June 29; Automatic Data Processing Inc.’s operating margin was 22.00%. The firm’s gross profit as reported stood at $6.37 billion against revenue of $15.01 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Analysts expected ADP to announce $1.14 per share in earnings in its latest quarter, but it posted $1.2, representing a 5.30% surprise. EBITDA for the quarter stood at more than $1.07 billion. ADP stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 43.1 billion, with total debt at $3.45 billion. Shareholders hold equity totaling $423.08 million

Technical Picture

Let’s look briefly at Automatic Data Processing Inc. (ADP) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 12 October was 53.07% to suggest the stock is trending Neutral, with historical volatility in this time period at 15.69%.

The stock’s 5-day moving average is $205.26, reflecting a +0.04% or $0.08 change from its current price. ADP is currently trading +2.05% above its 20-day SMA, +5.00% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by -2.68% and +15.45% respectively.

Stochastic %K and %D was 65.12% and 76.54% and the average true range (ATR) pointed at 3.27. The RSI (14) points at 51.48%, while the 14-day stochastic is at 58.69% with the period’s ATR at 3.28. The stock’s 9-day MACD Oscillator is pointing at 1.03 and 2.14 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Automatic Data Processing Inc. (NASDAQ: ADP), JP Morgan downgraded it to an Underweight rating. They previously had a Neutral rating on the stock. Analysts offering their rating for ADP stock have a consensus rating for the stock as Hold. Currently, 3 brokerage advisors rate ADP as a “sell,”, while 15 advise that investors “Hold.” 1 analysts have rated the stock as underweight. 0 rates the stock as overweight while 3 have offered a “buy” rating.

What is ADP’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $163.00 and a high of $230.00, with their median price target at $215.00. Looking at these predictions, the average price target given by analysts is for Automatic Data Processing Inc. (ADP) stock is $210.81.

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