Healthy Upside Potential: Automatic Data Processing Inc. (ADP)

With 1.06 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.89 million shares. The 52-week range on ADP shows that it touched its highest point at $256.84 and its lowest point at $201.46 during that stretch. It currently has a 1-year price target of $252.77. With its current market cap of 100.41 billion, ADP has annualized dividend of $5.30 while the current yield stands at 2.17%. Beta for the stock currently stands at 0.79.

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 up-trending over the past week, with a rise of 1.21%, but this was down by -0.10% over a month. Three-month performance surged to 3.88% while six-month performance fell -1.90%. The stock gained 13.57% in the past year, while it has gained 4.91% so far this year. A look at the trailing 12-month EPS for ADP yields 8.59 with Next year EPS estimates of 10.00. For the next quarter, that number is 2.79. This implies an EPS growth rate of 10.79% for this year and 9.67% for next year. EPS is expected to grow by 10.93% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 14.07%.

Float and Shares Shorts:

At present, 412.10 million ADP shares are outstanding with a float of 408.74 million shares on hand for trading. On Mar 28, 2024, short shares totaled 4.56 million, which was 1.11% higher than short shares on Feb 29, 2024. In addition to ADM as the firm’s Archer-Daniels-Midland Company, ADI serves as its Analog Devices, Inc..

Institutional Ownership:

Through their ownership of 83.66% of ADP’s outstanding shares, institutional investors have majority control over the company.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ADP since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Dividends & Yield:

In terms of dividends, ADP has a current ratio of $5.60, which is $5.60 over the trailing 12-months, while a dividend of $– 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 $2.16. In the past year, ADP’s dividend yield has been $2.16, 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 $1.06. This was $1.06 for the TTM, and it was $1.46 for the past five years.