As the world becomes increasingly uncertain, Automatic Data Processing Inc. (ADP) offers stability

Automatic Data Processing Inc. (NASDAQ: ADP) closed the day trading at $261.97 up 1.70% from the previous closing price of $257.60. In other words, the price has increased by $+4.37 from its previous closing price. On the day, 1266277 shares were traded. ADP stock price reached its highest trading level at $262.54 during the session, while it also had its lowest trading level at $258.06.

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Ratios:

For a better understanding of ADP, let’s look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 87.35 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 59.36. For the most recent quarter (mrq), Quick Ratio is recorded 1.00 and its Current Ratio is at 1.00. In the meantime, Its Debt-to-Equity ratio is 1.16 whereas as Long-Term Debt/Eq ratio is at 1.16.

Upgrades & Downgrades

On August 17, 2021, JP Morgan Downgraded its rating to Underweight which previously was Neutral but kept the price unchanged to $224.

Credit Suisse Downgraded its Outperform to Neutral on August 16, 2021, while the target price for the stock was maintained at $215.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Nov 07 when D’Ambrosio Christopher sold 304 shares for $238.45 per share. The transaction valued at 72,488 led to the insider holds 3,276 shares of the business.

Sperduto James T sold 160 shares of ADP for $38,982 on Nov 02. The Corp VP now owns 8,375 shares after completing the transaction at $243.64 per share. On Nov 01, another insider, Sperduto James T, who serves as the Corp VP of the company, sold 207 shares for $242.34 each. As a result, the insider received 50,164 and left with 8,535 shares of the company.

Valuation Measures:

As of this moment, Automatic’s Price-to-Earnings (P/E) ratio for their current fiscal year is 36.29, and their Forward P/E ratio for the next fiscal year is 29.07. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 2.42. For the stock, the TTM Price-to-Sale (P/S) ratio is 6.38 while its Price-to-Book (P/B) ratio in mrq is 42.19.

Stock Price History:

Over the past 52 weeks, ADP has reached a high of $261.59, while it has fallen to a 52-week low of $192.26. The 50-Day Moving Average of the stock is 237.38, while the 200-Day Moving Average is calculated to be 226.49.

Shares Statistics:

Over the past 3-months, ADP traded about 1.76M shares per day on average, while over the past 10 days, ADP traded about 1.6M shares per day. A total of 414.60M shares are outstanding, with a floating share count of 414.36M. Insiders hold about 0.10% of the company’s shares, while institutions hold 81.90% stake in the company. Shares short for ADP as of Oct 13, 2022 were 5.85M with a Short Ratio of 5.79M, compared to 4.61M on Sep 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 1.41% and a Short% of Float of 1.41%.

Dividends & Splits

ADP’s forward annual dividend rate is 5.00, up from 3.68 a year ago. Against a Trailing Annual Dividend Yield of 1.43%, it implies a Forward Annual Dividend Yield of 1.77%. The stock’s 5-year Average Dividend Yield is 1.96. The current Payout Ratio is 55.80% for ADP, which recently paid a dividend on Dec 31, 2022 with an ex-dividend date of Sep 07, 2022. Stock splits for the company last occurred on Sep 30, 2014 when the company split stock in a 1139:1000 ratio.

Earnings Estimates

Current recommendations for the stock of the company come from 17 analysts. On average, analysts expect EPS of $1.94 for the current quarter, with a high estimate of $2.01 and a low estimate of $1.89, while EPS last year was $1.65. The consensus estimate for the next quarter is $2.49, with high estimates of $2.58 and low estimates of $2.34.

Analysts are recommending an EPS of between $8.23 and $7.92 for the fiscal current year, implying an average EPS of $8.12. EPS for the following year is $9.05, with 17 analysts recommending between $9.25 and $8.7.

Revenue Estimates

A total of 18 analysts have provided revenue estimates for ADP’s current fiscal year. The highest revenue estimate was $18.02B, while the lowest revenue estimate was $17.58B, resulting in an average revenue estimate of $17.92B. In the same quarter a year ago, actual revenue was $16.5B, up 8.60% from the average estimate. Based on 17 analysts’ estimates, the company’s revenue will be $19.19B in the next fiscal year. The high estimate is $19.55B and the low estimate is $18.68B. The average revenue growth estimate for next year is up 7.10% from the average revenue estimate for this year.