As of Wednesday close, Automatic Data Processing Inc.’s (NASDAQ:ADP) stock was up $0.58, moving up 0.23 percent to $254.93. The average number of shares traded per day over the past five days has been 1,142,480 shares. 4 times new highs have been achieved over the past 5 days, with a $4.01 gain in that time frame. In the last twenty days, the average volume was 1,185,960, while in the previous 50 days, it was 1,530,954.
Since last month, ADP stock rose 2.66%. Shares of the company fell to $245.02 on 08/01/23, the lowest level in the past month. A 52-week high of $274.92 was reached on 07/27/23 after having rallying from a 52-week low of $201.46. Since the beginning of this year, ADP’s stock price has risen by 6.73% or $16.07, and marked a new high 8 times. However, the stock has declined by -7.27% since its 52-week high.
ADP stock investors should be aware that Automatic Data Processing Inc. (ADP) stock had its last reported insider trading activity 35 days ago on Jul 27. Bonarti Michael A, the Corporate Vice President of the company, disposed of 7,049 shares for $254.75 on Jul 27. It resulted in a $1,795,733 divestment by the insider. Albinson Brock sold 1,500 shares at an average price of $220.00 on Mar 01. The insider now owns 5,317 shares following the transaction. On Jan 11, Corporate VP Weinstein Donald sold 5,075 shares at $245.00 apiece. The transaction was valued at $1,243,375.
Valuation Metrics
Right now, Automatic Data Processing Inc. (ADP) has a P/E ratio of about 31.06. The stock’s beta is 0.81. Besides these, the trailing price-to-sales (P/S) ratio of 5.76, the price-to-book (PB) ratio of 29.96, and the price-to-cash flow ratio of 28.51 may also be considered.
The latest dividend of $1.25 per share was paid out, remained unchanged from last year’s $1.25.
Financial Health
In the three months ended June 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 June 29 was 0.85, and the total debt-to-equity ratio was 0.85. On the profitability front, the trailing twelve-month gross margin is 44.90% percent. In the year ended June 29, EBITDA margin amounted to 28.07%, whereas operating margins totaled 25.00%. Based on annual data, ADP earned $8.06 billion in gross profit and brought in $18.01 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 53.50%. Return on equity (ROE) for the past 12 months was 106.90%.
In Automatic Data Processing Inc.’s quarter-end financial report for June 29, it reported total debt of $2.99 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. ADP’s revenue rose 7.82% to $4.93 billion during the quarter, while net income inched up to $4.48 billion. While analysts expected Automatic Data Processing Inc. to report $1.83 quarterly earnings, the actual figure was $1.89 per share, beating the consensus estimate by 3.30%. During the quarter, the company generated $1.43 billion in EBITDA. The liabilities of Automatic Data Processing Inc. were 47.46 billion at the end of its most recent quarter ended June 29, and its total debt was $3.54 billion. The value of shareholders’ equity is $411.99 million.
Technical Picture
This quick technical analysis looks at Automatic Data Processing Inc.’s (ADP) price momentum. With a historical volatility rate of 8.42%, the RSI 9-day stood at 69.62% on 30 August.
With respect to its five-day moving average, the current Automatic Data Processing Inc. price is up by +1.60% percent or $4.01. At present, ADP shares trade +3.06% above its 20-day simple moving average and +17.96% percent above its 100-day simple moving average. However, the stock is currently trading approximately +15.73% above its SMA50 and +0.02% above its SMA200.
Stochastic coefficient K was 81.58% and Stochastic coefficient D was 77.21%, while ATR was 3.23. Given the Stochastic reading of 83.36% for the 14-day period, the RSI (14) reading has been calculated as 68.20%. As of today, the MACD Oscillator reading stands at 2.43, while the 14-day reading stands at 2.70.
