As of Thursday close, Automatic Data Processing Inc.’s (NASDAQ:ADP) stock was down -$5.15, moving down -2.11 percent to $238.72. The average number of shares traded per day over the past five days has been 1,554,560 shares. 1 time new highs have been achieved over the past 5 days, with a -$9.57 fall in that time frame. In the last twenty days, the average volume was 1,391,225, while in the previous 50 days, it was 1,521,872.
Since last month, ADP stock retreated -4.33%. Shares of the company fell to $238.62 on 09/21/23, 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 dropped by -0.06% or -$0.14, and marked a new high 8 times. However, the stock has declined by -13.17% 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 10 days ago on Sep 12. Rodriguez Carlos A, the Executive Chair of the company, disposed of 52,254 shares for $247.93 on Sep 12. It resulted in a $12,955,404 divestment by the insider. Rodriguez Carlos A sold 58,864 shares at an average price of $250.42 on Sep 07. The insider now owns 44,859 shares following the transaction. On Sep 06, Executive Chair Rodriguez Carlos A sold 39,250 shares at $251.01 apiece. The transaction was valued at $9,852,003.
Valuation Metrics
Right now, Automatic Data Processing Inc. (ADP) has a P/E ratio of about 29.08. The stock’s beta is 0.82. Besides these, the trailing price-to-sales (P/S) ratio of 5.53, the price-to-book (PB) ratio of 28.05, and the price-to-cash flow ratio of 27.38 may also be considered.
The latest dividend of $1.25 per share was paid out, remained unchanged from last year’s $1.25. On Wednesday November 9 2022, a $0.21 dividend increase was announced.
Financial Health
In the recent quarter, 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 recent quarter 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 recent year, 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%.
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. 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, 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 12.10%, the RSI 9-day stood at 20.17% on 21 September.
With respect to its five-day moving average, the current Automatic Data Processing Inc. price is down by -3.85% percent or -$9.57. At present, ADP shares trade -4.86% below its 20-day simple moving average and +8.51% percent above its 100-day simple moving average. However, the stock is currently trading approximately +6.10% above its SMA50 and -11.55% below its SMA200.
Stochastic coefficient K was 5.23% and Stochastic coefficient D was 10.39%, while ATR was 3.27. Given the Stochastic reading of 0.58% for the 14-day period, the RSI (14) reading has been calculated as 29.86%. As of today, the MACD Oscillator reading stands at -3.12, while the 14-day reading stands at -5.23.
Analyst Ratings
RBC Capital Mkts launched its rating on Automatic Data Processing Inc. (NASDAQ: ADP) to a Sector perform in a note to investors on September 05, 2023. Automatic Data Processing Inc. (ADP) has been rated Hold by analysts. According to 3 brokerage firms, ADP is a sell, and 13 firms recommend it is a Hold. There are 2 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 $260.00, the current consensus forecast for the stock is $225.00 – $285.00. Based on these forecasts, analysts predict Automatic Data Processing Inc. (ADP) will achieve an average price target of $260.20.
