A new trading data show Automatic Data Processing Inc. (ADP) is showing positive returns.

Automatic Data Processing Inc. (NASDAQ: ADP) stock jumped 0.02% on Friday to $230.47 against a previous-day closing price of $230.42. With 1.62 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.57 million shares. During the session, the Staffing & Employment Services company that operates in wider Industrials sector, reached to the highest price of $232.49 whereas the lowest price it dropped to was $228.85. The 52-week range on ADP shows that it touched its highest point at $261.59 and its lowest point at $192.26 during that stretch. It currently has a 1-year price target of $246.41. With its current market cap of 94.56 billion, ADP has annualized dividend of $4.16 while the current yield stands at 1.81%. Beta for the stock currently stands at 0.84.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ADP was down-trending over the past week, with a drop of -0.10%, but this was down by -9.89% over a month. Three-month performance surged to 9.45% while six-month performance rose 8.42%. The stock gained 16.22% in the past year, while it has lost -6.53% so far this year. A look at the trailing 12-month EPS for ADP yields 7.00 with Next year EPS estimates of 8.94. For the next quarter, that number is 1.80. This implies an EPS growth rate of 15.40% for this year and 11.42% for next year. EPS is expected to grow by 14.50% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 12.00%.

Float and Shares Shorts:

At present, 415.80 million ADP shares are outstanding with a float of 415.07 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.98 million, which was 0.95% higher than short shares on Jun 14, 2022. In addition to Mr. Carlos A. Rodriguez as the firm’s CEO & Director, Ms. Maria Black serves as its Pres.

Institutional Ownership:

Through their ownership of 81.90% of ADP’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 41.47% of ADP, in contrast to 39.18% held by mutual funds. Shares owned by individuals account for 2.27%. As the largest shareholder in ADP with 8.99% of the stake, The Vanguard Group, Inc. holds 37,360,801 shares worth 37,360,801. A second-largest stockholder of ADP, BlackRock Fund Advisors, holds 20,694,341 shares, controlling over 4.98% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in ADP, holding 17,729,113 shares or 4.27% stake. With a 2.98% stake in ADP, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 12,366,168 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.24% of ADP stock, is the second-largest Mutual Fund holder. It holds 9,323,038 shares valued at 2.28 billion. Invesco QQQ Trust holds 1.45% of the stake in ADP, owning 6,015,949 shares worth 1.47 billion.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ADP since 21 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 3 suggest SELL ratings. Of the remaining analysts, 15 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ADP analysts setting a high price target of $280.00 and a low target of $208.00, the average target price over the next 12 months is $246.71. Based on these targets, ADP could surge 21.49% to reach the target high and fall by -9.75% to reach the target low. Reaching the average price target will result in a growth of 7.05% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ADP will report FY 2023 earnings on 07/26/2023. Analysts have provided yearly estimates in a range of $8.12 being high and $7.71 being low. For ADP, this leads to a yearly average estimate of $8.01. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Automatic Data Processing Inc. surprised analysts by $0.04 when it reported $1.50 EPS against a consensus estimate of $1.46. The surprise factor in the prior quarter was $0.13. Based on analyst estimates, the high estimate for the next quarter is $1.89 and the low estimate is $1.71. The average estimate for the next quarter is thus $1.80.

Dividends & Yield:

In terms of dividends, ADP has a current ratio of $4.16, which is $4.16 over the trailing 12-months, while a dividend of $3.22 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and ADP currently yields $1.81. In the past year, ADP’s dividend yield has been $1.81, but when looking at the stock over the past five years, its yield has been $1.96. Accordingly, ADP has a current buyback yield of $2.06. This was $2.06 for the TTM, and it was $1.66 for the past five years.

Summary of Insider Activity:

Insiders traded ADP stock several times over the past three months with 67 Buys and 84 Sells. In these transactions, 293,475 shares were bought while 194,181 shares were sold. The number of buy transactions has increased to 120 while that of sell transactions has risen to 177 over the past year. The total number of shares bought during that period was 544,312 while 511,887 shares were sold.

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