Automatic Data Processing Inc. (NASDAQ:ADP) saw an upside of 2.42% to $242.97 after adding $5.73 on Wednesday. The 5-day average trading volume is 1,161,808 shares of the company’s common stock. It has gained $243.17 in the past week and touched a new high 2 times within the past 5 days. An average of 1,412,422 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 1,496,915.
ADP’s 1-month performance is -4.49% or -$10.89 on its low of $236.13 reached on 09/26/23. The company’s shares have touched a 52-week low of $201.46 and high of $274.92, with the stock’s rally to the 52-week high happening on 07/27/23. YTD, ADP has achieved 1.72% or $3.30 and has reached a new high 8 times. However, the current price is down -11.62% from the 52-week high price.
Insider Transactions
ADP stock investors last saw insider trading activity on Sep 12.Rodriguez Carlos A (Executive Chair) most recently sold 52,254 shares at $247.93 per share on Sep 12. This transaction cost the insider $12,955,404. Executive Chair, Rodriguez Carlos A, sold 58,864 shares at a price of $250.42 on Sep 07. Then, on Sep 06, Executive Chair Rodriguez Carlos A sold 39,250 shares at a price of $251.01 per share. This transaction amounted to $9,852,003.
Valuation Metrics
ADP stock has a beta of 0.82. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 5.56 while the price-to-book (PB) in the most recent quarter is 28.53, with the price to cash flow ratio at 25.02.
Automatic Data Processing Inc.’s quick ratio for the period ended June 29 was 0.99, with the current ratio over the same period at 0.99. As well, the company’s long term debt to equity for the quarter ending June 29 was 0.95, while the total debt to equity was 1.01. In terms of profitability, the gross margin trailing 12 months is 48.89%. The trailing 12-month EBITDA margin is 28.07% while for the period ending June 29, Automatic Data Processing Inc.’s operating margin was 25.04%. The firm’s gross profit as reported stood at $8.06 billion against revenue of $18.01 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. Net income grew 19.48% to $776.8 million, while revenue of $1.04 billion was -34.28% off the previous quarter. Analysts expected ADP to announce $1.83 per share in earnings in its latest quarter, but it posted $1.89, representing a 3.30% surprise. EBITDA for the quarter stood at more than $1.43 billion. ADP stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 47.46 billion, with total debt at $3.54 billion. Shareholders hold equity totaling $411.99 million.
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 26 September was 42.92% to suggest the stock is trending Neutral, with historical volatility in this time period at 18.69%.
The stock’s 5-day moving average is $239.50, reflecting a -0.70% or -$1.71 change from its current price. ADP is currently trading -4.79% above its 20-day SMA, +13.26% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +2.65% and SMA200 by-6.88%.
Stochastic %K and %D was 20.88% and 13.51% and the average true range (ATR) pointed at 3.61. The RSI (14) points at 43.09%, while the 14-day stochastic is at 39.52% with the period’s ATR at 3.49. The stock’s 9-day MACD Oscillator is pointing at -2.39 and -4.58 on the 14-day charts.
Analyst Ratings
In the most recent analyst report for Automatic Data Processing Inc. (NASDAQ: ADP), RBC Capital Mkts launched coverage with a Sector perform rating. 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 13 advise that investors “Hold.” 2 analysts have rated the stock as underweight. 1 rates the stock as overweight while 2 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 $225.00 and a high of $285.00, with their median price target at $260.00. Looking at these predictions, the average price target given by analysts is for Automatic Data Processing Inc. (ADP) stock is $260.20.
