The stock of Automatic Data Processing Inc. (NASDAQ: ADP) has increased by 0.96 when compared to last closing price of 245.31. Despite this, the company has experienced a 1.42% gain in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-04-02 that Tomorrow morning brings us monthly private-sector jobs totals from ADP, and here we get an accurate assessment of the labor market.
Is It Worth Investing in Automatic Data Processing Inc. (NASDAQ: ADP) Right Now?
Automatic Data Processing Inc. (NASDAQ: ADP) has a higher price-to-earnings ratio of 28.82x compared to its average ratio, The 36-month beta value for ADP is at 0.79. Analysts have varying views on the stock, with 0 analysts rating it as a “buy,” 2 rating it as “overweight,” 16 as “hold,” and 0 as “sell.”
The public float for ADP is 408.73M, and currently, shorts hold a 1.27% of that float. The average trading volume for ADP on April 03, 2024 was 1.90M shares.
ADP’s Market Performance
The stock of Automatic Data Processing Inc. (ADP) has seen a 1.42% increase in the past week, with a -0.81% drop in the past month, and a 6.31% gain in the past quarter. The volatility ratio for the week is 1.73%, and the volatility levels for the past 30 days are at 1.48% for ADP. The simple moving average for the past 20 days is 1.05% for ADP’s stock, with a 3.61% simple moving average for the past 200 days.
Analysts’ Opinion of ADP
Many brokerage firms have already submitted their reports for ADP stocks, with BofA Securities repeating the rating for ADP by listing it as a “Neutral.” The predicted price for ADP in the upcoming period, according to BofA Securities is $243 based on the research report published on January 17, 2024 of the current year 2024.
UBS gave a rating of “Neutral” to ADP, setting the target price at $235 in the report published on November 07th of the previous year.
ADP Trading at 0.43% 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 -3.57% of loss for the given period.
Volatility was left at 1.48%, however, over the last 30 days, the volatility rate increased by 1.73%, as shares surge +0.59% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +3.95% upper at present.
During the last 5 trading sessions, ADP rose by +1.42%, which changed the moving average for the period of 200-days by +14.61% in comparison to the 20-day moving average, which settled at $245.16. In addition, Automatic Data Processing Inc. saw 6.31% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at ADP starting from KUTAM SREENIVASA, who sale 368 shares at the price of $247.01 back on Mar 04 ’24. After this action, KUTAM SREENIVASA now owns 20,319 shares of Automatic Data Processing Inc., valued at $90,900 using the latest closing price.
Albinson Brock, the Corp. VP of Automatic Data Processing Inc., sale 1,170 shares at $249.43 during a trade that took place back on Mar 01 ’24, which means that Albinson Brock is holding 4,025 shares at $291,833 based on the most recent closing price.
Stock Fundamentals for ADP
Current profitability levels for the company are sitting at:
- 0.12 for the present operating margin
- 0.44 for the gross margin
The net margin for Automatic Data Processing Inc. stands at 0.2. The total capital return value is set at 0.25. Equity return is now at value 97.38, with 6.38 for asset returns.
Based on Automatic Data Processing Inc. (ADP), the company’s capital structure generated 0.43 points at debt to capital in total, while cash flow to debt ratio is standing at 1.19. The debt to equity ratio resting at 0.77. The interest coverage ratio of the stock is 6.58.
Currently, EBITDA for the company is 5.26 billion with net debt to EBITDA at 0.31. When we switch over and look at the enterprise to sales, we see a ratio of 5.71. The receivables turnover for the company is 5.37for trailing twelve months and the total asset turnover is 0.32. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.01.
Conclusion
In conclusion, Automatic Data Processing Inc. (ADP) has had a better performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
