Automatic Data Processing Inc. [ADP] Analysis: Why ADP Stock Is dripping down Today

Automatic Data Processing Inc. [ADP] stock is down -1.77 while the S&P 500 has risen 0.18% on Wednesday, 12/02/20. While at the time of this article, ADP ATR is sitting at 3.88, with the beta value at 0.72. This stock’s volatility for the past week remained at 1.75%, while it was 2.07% for the past 30-day period. ADP has fallen -$3.09 from the previous closing price of $174.67 on volume of 2.36 million shares.

On 2, December 2020, ADP National Employment Report: Private Sector Employment Increased by 307,000 Jobs in November. According to news published on Yahoo Finance, Private sector employment increased by 307,000 jobs from October to November according to the November ADP National Employment Report®. Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by the ADP Research Institute® in collaboration with Moody’s Analytics. The report, which is derived from ADP’s actual payroll data, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis.

Analyst Birdseye View:

The most recent analyst activity for Automatic Data Processing Inc. [NASDAQ:ADP] stock was on July 14, 2020, when it was Initiated with a Sell rating from Goldman, which also raised its 12-month price target on the stock to $146. Before that, on September 21, 2020, Cowen Recapitulated a Market perform rating and elevated its amount target to $143. On May 18, 2020, BofA/Merrill Downgrade an Underperform rating. On January 22, 2020, Evercore ISI Upgrade an Outperform rating and increased its price target to $212. On January 14, 2020, Citigroup Resumed a Neutral rating and increased its price target to $185. On January 07, 2020, MoffettNathanson Downgrade a Neutral rating. On October 31, 2019, Wolfe Research Downgrade a Peer perform rating. On September 11, 2019 Cowen Initiated an Outperform rating and elevated its amount target to $195.

In the past 52 weeks of trading, this stock has oscillated between a low of $103.11 and a peak of $182.32. Right now, the middling Wall Street analyst 12-month amount mark is $165.00. At the most recent market close, shares of Automatic Data Processing Inc. [NASDAQ:ADP] were valued at $171.58. According to the average price forecast, investors can expect a potential return of -1.61%.

FUNDAMENTAL ANALYSIS

Automatic Data Processing Inc. [NASDAQ:ADP] most recently reported quarterly sales of 3.47 billion, which represented growth of -0.70%. This publicly-traded organization’s revenue is $251,548 per employee, while its income is $42,526 per employee. This company’s Gross Margin is currently 42.20%, its Operating Margin is 21.60%, its Pretax Margin is +21.81, and its Net Margin is +16.91. Continuing to look at profitability, this corporation’s Return on Assets, Equity, Whole Principal & invested Principal is sitting at 6.09, 44.23, 39.58 and 34.02 respectively.

The Principal structure of this organization shows its whole liability to whole principal at 29.94 and the whole liability to whole assets at 6.28. It shows enduring liability to the whole principal at 16.41 and enduring liability to assets at 0.03 while looking for an extended time period.

Readers are usually of view to make a close observation to the indicators that support and make resistance before moving to any particular stock. As of now, the company’s stock is sitting at 170.04 points at 1st support level, the second support level is making up to 168.50. But as of 1st resistance point, this stock is sitting at 174.09 and at 176.60 for 2nd resistance point.

Automatic Data Processing Inc. [ADP] reported its earnings at $1.41 per share in the fiscal quarter closing of 9/29/2020. The Analysts for Wall Street were expecting to report its earnings at $0.98/share signifying the difference of 0.43 and 43.90% surprise value. Comparing the previous quarter ending of 6/29/2020, the stated earnings were $1.14 calling estimates for $0.96/share with the difference of 0.18 depicting the surprise of 18.80%.

Important Ratio’s To Watch

Meanwhile, turning our focus to liquidity, the Current Ratio for Automatic Data Processing Inc. [NASDAQ:ADP] is 1.10. Likewise, the Quick ratio is also the same, showing Cash ratio at 0.06. Now if looking for a valuation of this stock’s amount to sales ratio it’s 4.42, it’s amount to book ratio is 11.13 and showing 29.86 of P/E (TTM) ratio.

Insider Stories

The most recent insider trade was by Ayala John, Corp. VP, and it was the sale of 6485.0 shares on Nov 16. O’Brien Dermot J, the Corp. VP, completed a sale of 12406.0 shares on Nov 16. On Nov 11, Rodriguez Carlos A, President & CEO, completed a sale of 37593.0 shares.