How Analysts Feel About Automatic Data Processing Inc. (ADP)?

As of Friday close, Automatic Data Processing Inc.’s (NASDAQ:ADP) stock was up $1.31, moving up 0.63 percent to $208.79. The average number of shares traded per day over the past five days has been 2,308,840 shares. 1 time new highs have been achieved over the past 5 days, with a -$8.15 fall in that time frame. In the last twenty days, the average volume was 2,063,875, while in the previous 50 days, it was 2,051,344.

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Since last month, ADP stock retreated -10.67%. Shares of the company fell to $204.32 on 05/12/22, the lowest level in the past month. A 52-week high of $248.96 was reached on 01/03/22 after having rallying from a 52-week low of $187.29. Since the beginning of this year, ADP’s stock price has dropped by -15.33% or -$37.79, and marked a new high 1 time. However, the stock has declined by -16.14% since its 52-week high.

Automatic Data Processing Inc. (ADP) last reported insider trading activity 5 days ago on May 09. D’Ambrosio Christopher, the Corp. VP of the company, disposed of 312 shares for $214.07 on May 09. It resulted in a $66,789 divestment by the insider. Dyson Deborah L sold 2,787 shares at an average price of $234.55 on Apr 05. The insider now owns 26,663 shares following the transaction. On Feb 09, Corp VP Sperduto James T sold 1,671 shares at $210.47 apiece. The transaction was valued at $351,695.

Valuation Metrics

Right now, Automatic Data Processing Inc. (ADP) has a P/E ratio of about 30.83. The stock’s beta is 0.83. Besides these, the trailing price-to-sales (P/S) ratio of 5.46, the price-to-book (PB) ratio of 20.82, and the price-to-cash flow ratio of 83.01 may also be considered.

The latest dividend of $1.04 per share was paid out, remained unchanged from last year’s $1.04. On Wednesday November 10 2021, a $0.11 dividend increase was announced.

Financial Health

In the three months ended September 29, Automatic Data Processing Inc.’s quick ratio stood at 1.00, while its current ratio was 1.00, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 0.71, and the total debt-to-equity ratio was 0.71. On the profitability front, the trailing twelve-month gross margin is 42.50% percent. In the year ended September 29, EBITDA margin amounted to 25.56%, whereas operating margins totaled 22.70%. Based on annual data, ADP earned $6.37 billion in gross profit and brought in $15.01 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 29.40%. Return on equity (ROE) for the past 12 months was 56.50%.

In Automatic Data Processing Inc.’s quarter-end financial report for September 29, it reported total debt of $2.99 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. ADP’s revenue rose 9.11% to $4.03 billion during the quarter, while net income inched up to $4.51 billion. While analysts expected Automatic Data Processing Inc. to report $1.49 quarterly earnings, the actual figure was $1.65 per share, beating the consensus estimate by 10.70%. During the quarter, the company generated $1.58 billion in EBITDA. The liabilities of Automatic Data Processing Inc. were 67.88 billion at the end of its most recent quarter ended September 29, and its total debt was $3.45 billion. The value of shareholders’ equity is $417.75 million.

Technical Picture

This quick technical analysis looks at Automatic Data Processing Inc.’s (ADP) price momentum. With a historical volatility rate of 36.16%, the RSI 9-day stood at 35.40% on 13 May.

With respect to its five-day moving average, the current Automatic Data Processing Inc. price is down by -3.76% percent or -$8.15. At present, ADP shares trade -8.90% below its 20-day simple moving average and -8.97% percent below its 100-day simple moving average. However, the stock is currently trading approximately +2.00% above its SMA50 and -0.02% below its SMA200.

Stochastic coefficient K was 9.95% and Stochastic coefficient D was 8.23%, while ATR was 6.13. Given the Stochastic reading of 15.71% for the 14-day period, the RSI (14) reading has been calculated as 38.68%. As of today, the MACD Oscillator reading stands at -6.49, while the 14-day reading stands at -9.61.

Analyst Ratings

BofA Securities upgraded its rating on Automatic Data Processing Inc. (NASDAQ: ADP) to a Neutral in a note to investors on March 09, 2022. The analysts firm previously had an Underperform rating on the stock.Automatic Data Processing Inc. (ADP) has been rated Hold by analysts. According to 3 brokerage firms , ADP is a sell, and 15 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Automatic Data Processing Inc. stock as buy, with 2 recommending it as overweight.

With a median target price of $235.00, the current consensus forecast for the stock is $199.00 – $257.00. Based on these forecasts, analysts predict Automatic Data Processing Inc. (ADP) will achieve an average price target of $233.18.


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