Automatic Data Processing Inc (NASDAQ: ADP)’s stock price has decreased by -3.48 compared to its previous closing price of 302.99. However, the company has seen a -6.70% decrease in its stock price over the last five trading sessions. zacks.com reported 2025-03-11 that Strategic acquisitions, a three-tier business strategy and a robust liquidity position are benefiting ADP.
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 30.51x, which is above its average ratio. Moreover, the 36-month beta value for ADP is 0.75. Analysts have varying 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 406.32M and currently, short sellers hold a 1.63% of that float. On March 12, 2025, ADP’s average trading volume was 1.79M shares.
ADP’s Market Performance
ADP’s stock has seen a -6.70% decrease for the week, with a -4.42% drop in the past month and a -3.10% fall in the past quarter. The volatility ratio for the week is 2.66%, and the volatility levels for the past 30 days are at 1.80% for Automatic Data Processing Inc The simple moving average for the past 20 days is -5.47% for ADP’s stock, with a 4.53% 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 -3.19% 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 -9.42% of loss for the given period.
Volatility was left at 1.80%, however, over the last 30 days, the volatility rate increased by 2.66%, as shares sank -4.72% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -1.36% lower at present.
During the last 5 trading sessions, ADP fell by -6.70%, which changed the moving average for the period of 200-days by +15.98% in comparison to the 20-day moving average, which settled at $309.35. In addition, Automatic Data Processing Inc saw -0.10% 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 D’Ambrosio Christopher, who proposed sale 473 shares at the price of $306.20 back on Mar 10 ’25. After this action, D’Ambrosio Christopher now owns shares of Automatic Data Processing Inc, valued at $144,833 using the latest closing price.
D’Ambrosio Christopher, the Corp. VP of Automatic Data Processing Inc, 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 7,118 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 6.08. 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
To wrap up, the performance of Automatic Data Processing Inc (ADP) has been bad in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. 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.
