BofA Securities has recently raised Automatic Data Processing Inc (ADP) stock to Neutral rating, as announced on January 17, 2024, according to Finviz. Earlier, on January 4, 2024, Wolfe Research had raised the stock from a Underperform to Peer Perform. UBS also initiated Neutral rating with a price target of $235. Additionally, RBC Capital Mkts initiated Sector Perform rating on September 5, 2023, with a target price of $267. UBS analysts, in their report published on June 2, 2023, also initiated Neutral rating and set a price target of $230 for Automatic Data Processing Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Automatic Data Processing Inc (ADP) Stock Trading Recap
On Monday, Automatic Data Processing Inc (ADP) stock saw a decline, ending the day at $290.91 which represents a decrease of $-1.38 or -0.47% from the prior close of $292.29. The stock opened at $291.73 and touched a low of $289.18 during the day, reaching a high of $291.99. The volume of shares traded was 1.04 million falling short of the average volume of 1.55 million.
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ADP Stock Performance and Moving Averages
In recent trading, Automatic Data Processing Inc (ADP) stock price has shown some volatility, fluctuating -0.03% over the last five trades and 5.25% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 18.11%, and it has gained 17.14% in the previous three months. Currently, ADP is trading at 2.31%, 5.05%, and 14.71% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, ADP, a Technology sector stock, is trading -1.11% below its 52-week high but remains 41.54% above its 52-week low. The Average True Range (ATR) (14 days) of 3.61 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Automatic Data Processing Inc’s Profitability and Valuation Ratios
Automatic Data Processing Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 25.74% and a profit margin of 19.54%, with a gross margin of 18.11%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Automatic Data Processing Inc’s market capitalization stands at $118.64 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 31.96, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 26.7. Additionally, the Price-to-Sales Ratio is 6.18, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 26.11, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.13% of Automatic Data Processing Inc (ADP)’s shares, while financial institutions hold 81.59%.
Notable insider trades include DeSilva Joseph, Corp VP at Automatic Data Processing Inc (ADP), who sold 1383 shares on Sep 17 ’24, at $280 each, totaling $0.39 million. On Sep 13 ’24, Rodriguez Carlos A, Director, sold 21950 shares for $277.68 each, amounting to $6.10 million. Additionally, on Sep 12 ’24, Rodriguez Carlos A sold 21949 shares at $276.85 each, generating $6.08 million.
