What Are The Chances Of Automatic Data Processing Inc. (NASDAQ: ADP) Becoming A Clear Buy?

After Hours

There may be slightly higher risks associated with pre-market and after-hours trading than during regular market hours. Due to the fact that issuers often announce critical financial information outside of regular trading hours, extended-hours trading may result in wider spreads for particular securities. The stock was recently discussed on Yahoo Finance as it revealed that ADP Named One of Fortune’s “World’s Most Admired Companies” for 18th Straight Year.

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Stocks Info

As a NASDAQ listed company, ADP falls under the Industrials sector while operating within the Staffing & Employment Services industry segment. The current market capitalization of Automatic Data Processing Inc. is $101.63B. A total of 2.01 million shares were traded on the day, compared to an average of 1.76M shares.

Insider Activity

Aside from predicting where a stock will go, investors also consider insider trades as an indicator of the stock’s future direction. During the recent three months, ADP has seen 10 BUY and 0 SELL insider trades, representing the acquisition of 15,186 and the disposition of 0 shares. Over the last 12 months, there were 45 BUYs and 42 SELLs from insiders. Insiders purchased 419,037 shares during that period but sold 359,426.

In the most recent transaction, Ayala John sold 1,500 shares of ADP for 235.13 per share on Jan 16. After the transaction, the Corp. VP now owns 19,183 company shares. In a previous transaction on Jan 03, Black Maria sold 359 shares at 233.63 per share. ADP shares that President & CEO owns now total 53,697.

Among the insiders who sold shares, Kwon David disposed of 2,633 shares on Jan 02 at a per-share price of $233.38. This resulted in the Corp VP holding 8,154 shares of ADP after the transaction. In another insider transaction, McGuire Don sold 2,380 shares at $238.91 per share on Oct 03. Company shares held by the Corp VP now total 20,665.

Dividend

Investors prefer companies that pay dividends because dividends generate immediate cash flow and indicate a positive outlook. Automatic Data Processing Inc. pays an annual dividend of $4.92, resulting in a dividend yield of 1.99%, and it has a price to earnings (P/E) ratio of 28.75. ADP’s most recent ex-dividend date was 3/7/2024 when it declared a $1.40 quarterly dividend that was paid in cash on 4/1/2024. Previously, the company paid the dividend on 1/1/2024 with an ex-dividend date of 12/7/2023. The ADP stock dividend was $1.40 per share in cash.

In spite of price targets being rarely accurate, it tends to exert some kind influence from time to time, and was often accepted by the market as having some value. According to analysts who have offered 12-month price targets for ADP in the last 3 months, the mean price target is $254.85 with high estimates of $280.00 and low estimates of $227.00. In terms of 52-week highs and lows, ADP has a high of $256.84 and a low of $201.46.

As of this writing, ADP has an earnings estimate of $2.79 per share for the current quarter. EPS was calculated based on a consensus of 17 estimates, with a high estimate of $2.89 per share and a lower estimate of $2.72. The company reported an EPS of $2.08 in the last quarter, which was 3.00% higher than expectations of $2.02.

Balance Sheet Annually/Quarterly

The balance sheet of a company shows what assets and liabilities a company has, as well as the amount, equity investors have invested. With the help of this information, a company’s financial ratios can be calculated to give investors an overview of the company’s prospects. ADP’s latest balance sheet shows that the firm has $1.44B in Cash & Short Term Investments as of fiscal 2022. There were $3.36B in debt and $55.16B in liabilities at the time. Its Book Value Per Share was $10.52, while its Total Shareholder’s Equity was $3.23B.

Analysts Opinion

The risks associated with pre-market and after-hours trading may be slightly higher than the regular market hours. The reason is that extended-hours trading may result in wider spreads for particular security due to lower liquidity and higher volatility as issuers often announce critical financial information outside regular trading hours. Currently, 0 analysts are providing their opinions on the stock. On a scale of 1 to 5, with 1 being Sell and 5 being Buy, the average analyst rating for ADP is Buy with a score of 3.24.

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