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Analyzing the Price-to-Earnings Ratio of Automatic Data Processing Inc. (ADP)

The price-to-earnings ratio for Automatic Data Processing Inc. (NASDAQ: ADP) is above average at 26.88x. The 36-month beta value for ADP is also noteworthy at 0.81. There are mixed opinions on the stock, with 2 analysts rating it as a “buy,” 1 rating it as “overweight,” 14 rating it as “hold,” and 3 rating it as “sell.”

The average price estimated by analysts for ADP is $231.59, which is $20.79 above than the current price. The public float for ADP is 410.16M, and at present, short sellers hold a 1.26% of that float. The average trading volume of ADP on May 26, 2023 was 1.82M shares.

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ADP) stock’s latest price update

Automatic Data Processing Inc. (NASDAQ: ADP)’s stock price has gone decline by -1.68 in comparison to its previous close of 214.00, however, the company has experienced a -2.33% decrease in its stock price over the last five trading days.

ADP’s Market Performance

Automatic Data Processing Inc. (ADP) has experienced a -2.33% fall in stock performance for the past week, with a -0.20% drop in the past month, and a -5.05% drop in the past quarter. The volatility ratio for the week is 1.06%, and the volatility levels for the past 30 days are at 1.54% for ADP. The simple moving average for the last 20 days is -2.21% for ADP’s stock, with a simple moving average of -9.84% for the last 200 days.

ADP Trading at -2.32% from the 50-Day Moving Average

After a stumble in the market that brought ADP to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -23.47% of loss for the given period.

Volatility was left at 1.54%, however, over the last 30 days, the volatility rate increased by 1.06%, as shares sank -2.66% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -1.34% lower at present.

During the last 5 trading sessions, ADP fell by -2.33%, which changed the moving average for the period of 200-days by -15.77% in comparison to the 20-day moving average, which settled at $214.86. In addition, Automatic Data Processing Inc. saw -11.91% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at ADP starting from Albinson Brock, who sale 1,500 shares at the price of $220.00 back on Mar 01. After this action, Albinson Brock now owns 5,317 shares of Automatic Data Processing Inc., valued at $330,000 using the latest closing price.

Weinstein Donald, the Corporate VP of Automatic Data Processing Inc., sale 5,075 shares at $245.00 during a trade that took place back on Jan 11, which means that Weinstein Donald is holding 32,950 shares at $1,243,375 based on the most recent closing price.

Stock Fundamentals for ADP

Current profitability levels for the company are sitting at:

  • +23.05 for the present operating margin
  • +46.86 for the gross margin

The net margin for Automatic Data Processing Inc. stands at +17.87. The total capital return value is set at 47.74, while invested capital returns managed to touch 37.85. Equity return is now at value 104.50, with 5.80 for asset returns.

Based on Automatic Data Processing Inc. (ADP), the company’s capital structure generated 111.33 points at debt to equity in total, while total debt to capital is 52.68. Total debt to assets is 5.69, with long-term debt to equity ratio resting at 104.11. Finally, the long-term debt to capital ratio is 49.27.

When we switch over and look at the enterprise to sales, we see a ratio of 5.12, with the company’s debt to enterprise value settled at 0.04. The receivables turnover for the company is 5.59 and the total asset turnover is 0.30. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.99.


In summary, Automatic Data Processing Inc. (ADP) has had a bad performance as of late. Analysts have bearish opinions on the stock, with some viewing it as a “sell” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.