Automatic Data Processing Inc (NASDAQ: ADP) has seen a rise in its stock price by 1.06 in relation to its previous close of 309.95. However, the company has experienced a 2.43% gain in its stock price over the last five trading sessions. zacks.com reported 2025-02-05 that Private Payrolls Grow More Than Expectation in January.
Is It Worth Investing in Automatic Data Processing Inc (NASDAQ: ADP) Right Now?
The price-to-earnings ratio for Automatic Data Processing Inc (NASDAQ: ADP) is above average at 32.68x, Company’s 36-month beta value is 0.79.Analysts have differing opinions on the stock, with 2 analysts rating it as a “buy,” 2 as “overweight,” 13 as “hold,” and 0 as “sell.”
The public float for ADP is 406.12M, and currently, short sellers hold a 1.43% ratio of that floaft. The average trading volume of ADP on February 20, 2025 was 1.73M shares.
ADP’s Market Performance
The stock of Automatic Data Processing Inc (ADP) has seen a 2.43% increase in the past week, with a 5.75% rise in the past month, and a 3.72% gain in the past quarter. The volatility ratio for the week is 1.36%, and the volatility levels for the past 30 days are at 1.49% for ADP. The simple moving average for the past 20 days is 2.85% for ADP’s stock, with a 13.74% 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 previous 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 4.89% 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 able to rebound, for now settling with 0.50% of gains for the given period.
Volatility was left at 1.49%, however, over the last 30 days, the volatility rate increased by 1.36%, as shares surge +5.05% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +3.21% upper at present.
During the last 5 trading sessions, ADP rose by +2.43%, which changed the moving average for the period of 200-days by +26.64% in comparison to the 20-day moving average, which settled at $304.53. In addition, Automatic Data Processing Inc saw 7.00% 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 D’Ambrosio Christopher, who sale 471 shares at the price of $308.24 back on Feb 10 ’25. After this action, D’Ambrosio Christopher now owns 7,118 shares of Automatic Data Processing Inc, valued at $145,181 using the latest closing price.
D’Ambrosio Christopher, the Officer of Automatic Data Processing Inc, proposed sale 471 shares at $308.24 during a trade that took place back on Feb 10 ’25, which means that D’Ambrosio Christopher is holding shares at $145,181 based on the most recent closing price.
Stock Fundamentals for ADP
Current profitability levels for the company are sitting at:
- 0.19 for the present operating margin
- 0.47 for the gross margin
The net margin for Automatic Data Processing Inc stands at 0.2. The total capital return value is set at 0.07. Equity return is now at value 83.72, with 6.49 for asset returns.
Based on Automatic Data Processing Inc (ADP), the company’s capital structure generated 0.46 points at debt to capital in total, while cash flow to debt ratio is standing at 1.11. The debt to equity ratio resting at 0.84. The interest coverage ratio of the stock is 8.91.
Currently, EBITDA for the company is 5.8 billion with net debt to EBITDA at 0.34. When we switch over and look at the enterprise to sales, we see a ratio of 6.51. The receivables turnover for the company is 5.68for trailing twelve months and the total asset turnover is 0.31. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.00.
Conclusion
In a nutshell, Automatic Data Processing Inc (ADP) has experienced a better performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
