Monthly Stock Report: Automatic Data Processing, Inc. (ADP)
Publication Date: September 22, 2024
Company Overview
Automatic Data Processing, Inc. (ADP), headquartered in Roseland, New Jersey, is a premier technology company specializing in cloud-based human capital management (HCM) solutions. Founded in 1949, ADP operates through two main segments: Employer Services and Professional Employer Organization (PEO) Services. The Employer Services segment offers innovative HR outsourcing and strategic cloud platforms, while the PEO Services segment focuses on HR and employment administration outsourcing through a co-employment model. As a key player in the Software – Application industry, ADP has a robust standing in the technology sector. With approximately 407.8 million shares outstanding and a current stock price of $276.41, ADP shows a strong financial foundation, reporting a total revenue of approximately $19.2 billion. Investment sentiment advises a hold position, reflecting cautious optimism amidst market fluctuations, with a target high price set at $310.00.
Financial Analysis
ADP’s stock performance analysis reveals a mixed sentiment among market analysts. The short interest level is relatively low, with approximately 1.35% of shares shorted, indicating moderate investor confidence. The average target mean price for ADP is noted at $273.41, suggesting a slight expected decrease from the current valuation, while the target high and low prices are set at $310.00 and $260.00, respectively. This indicates a potential range for stock movement, with analysts maintaining a cautious recommendation score of 2.8, signaling a hold strategy.
Additionally, the stock trades above its fifty-day moving average of $264.00, suggesting an upward trend. However, it approaches resistance near its fifty-two week high of $281.54. This context highlights a significant recovery from its fifty-two week low of $205.53. As investors assess their positions, monitoring ADP’s performance alongside market conditions remains critical for informed decision-making.
Market Outlook
Given the current dynamics, investors are encouraged to adopt a wait-and-see approach. With robust revenue figures indicating operational strength and a relatively low level of short interest, ADP appears well-positioned for potential growth. However, the varying target prices and the cautious recommendation underscore the importance of vigilance in the face of evolving market conditions. Future performance will depend on ADP’s capability to navigate economic fluctuations and deliver sustained value to shareholders.
| Metric | Value |
|---|---|
| Market Cap | $112.7b |
| Total Debt | $3.8b |
| Total Cash | $2.9b |
| Shares Outstanding | 407.8m |
| Float Shares | 407.1m |
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