ADP stock: buy or sell?

ADP stock price: $165.01 -0.07% At close on July 15th, 2019

Updated on:
July 15th, 2019

4

Shares of Automatic Data Processing stayed stable a neutral -0.07% and closed at $165.01.

Automatic Data Processing, Inc. provides business process outsourcing services worldwide. The company operates through two segments, Employer Services and Professional Employer Organization (PEO) Services.

Should I buy ADP stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Automatic Data Processing stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean ADP will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Automatic Data Processing stock a buy?

Financial institutions and banks post stock ratings everyday. At Stocks2.com, we gathered 2 ratings published for ADP stock in the last month.

Is ADP a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-5-6BarclaysOverweightOverweight
2019-5-2CitigroupNeutralNeutral

ADP stock analysis

Daily outlook

Shares of Automatic Data Processing stayed steady a neutral -0.07% and closed at $165.01.

Automatic Data Processing shares stayed steady -0.07% to $165.01 today. Since March when SMA50d and SMA100d crossed up, ADP price gained $14.00 per share (9.27%). Since last Jul 3rd when ADP stock price broke up the SMA50d line, it gained $3.05 (1.88%). On Jun 21st, ADP hit a new all time high, pushing higher than on June/20 tops. Check different trading setups that use ATHs as triggers.

ADP stock chart (daily)

Weekly outlook

Automatic Data Processing remained constant a neutral -0.07% this week.

Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $170.45 resistance. Not so far away is the last price record Automatic Data Processing marked by mid June. Since price and SMA40w lines crossed up late January, ADP climbed $29.96 (22.18%). Since SMA10d and SMA20w crossed up late February, ADP price climbed $13.35 per share (8.80%).

ADP stock chart (weekly)

ADP stock price history

ADP IPO was on March 17th, 1980 at $0.44 per share1. Since then, ADP stock grew a 37,402.30%, with an average of 959.00% per year. If you had invested right after ADP's IPO a $1,000 in ADP stock in 1980, it would worth $374,023.00 today.

1: Adjusted price after possible price splits or reverse-splits.

ADP stock historical price chart

ADP stock reached all-time highs on Jun 21st with a price of $170.45.

ADP stock price target is $171.00

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we found 2 price forecasts for ADP stock:
ADP stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-5-6BarclaysRaises Target$168.00$180.007.1%
2019-5-2CitigroupRaises Target$147.00$162.0010.2%
(in average)$157.50$171.009.0%
Moving in a range from $180.00 and $162.00, the price forecast for ADP stock is $171.00. In average, analysts' outlook on ADP price forecast is positive, improving the forecast by a 9.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last April, when Automatic Data Processing posted its last earnings report, it stepped up a tiny 1.73%. As soon as we get its actual EPS from the earnings report, we will extend this report.
ADP earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.59n/a
2017-Q32017-11-020.850.917.1%
2017-Q42018-01-310.90.9910.0%
2018-Q12018-05-021.441.525.6%
2018-Q22018-08-010.90.922.2%
2018-Q32018-10-311.11.29.1%
2018-Q42019-01-301.181.3413.6%
2019-Q12019-04-301.69n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw an excellent gain of 7.64% to $13,325.80 M dollars. When comparing 2018 vs 2017, by contrast, profit margin (that is, the net income divided by revenues) decreased a -1.84% to 12.16%.

Automatic Data Processing fiscal year ends in June, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Automatic Data Processing TTM sales up to March 2019 were $13,995.10 and earnings $1,926.00 M dollars. When comparing this TTM figures with the last reported annuality, we can review Automatic Data Processing business evolution since June 2018: Annual sales up to March, compared to lastest yearly report, soared a decent 5.02%. Similarly, profit margin (net income/revenues) grew at 12.16%.

ADP annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$11,310 M-$1,360 M12.0%-
2014$12,210 M7.96%$1,500 M12.3%10.29%
2015$10,939 M-10.41%$1,453 M13.3%-3.17%
2016$11,668 M6.67%$1,493 M12.8%2.75%
2017$12,380 M6.10%$1,733 M14.0%16.14%
2018$13,326 M7.64%$1,621 M12.2%-6.50%
TTM $13,995 M5.02%$1,926 M13.8%18.83%

Quarterly financial results

Automatic Data Processing posted $3,847.40 million in sales for 2019-Q1, a 9.74% improvement compared to previous quarter. Reported quarter income marked $753.70 million with a profit margin of 19.59%. Profit margin inched a 3.67% compared to previous quarter when profit margin was 15.92%. When comparing sales to same quarter last year, Automatic Data Processing sales marked a nice increase and gained a 4.18%. Looking back to recent quarterly results, Automatic Data Processing posted 3 negative quarters in a row.
ADP quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$3,060 M-$266 M8.7%-
2017-Q3$3,079 M0.61%$402 M13.0%51.05%
2017-Q4$3,235 M5.09%$468 M14.4%16.44%
2018-Q1$3,693 M14.14%$643 M17.4%37.56%
2018-Q2$3,319 M-10.14%$109 M3.3%-83.10%
2018-Q3$3,323 M0.14%$505 M15.2%364.95%
2018-Q4$3,506 M5.50%$558 M15.9%10.45%
2019-Q1$3,847 M9.74%$754 M19.6%35.02%

Automatic Data Processing ownership

When you are planning to invest in shares of a stock, it's always worth to review its ownership structure.

Automatic Data Processing shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.17% of all shares.

Bearish positions for ADP stock account 0.00%, no big difference from last month.

For a better understanding, the next table shows ownership data compared to other related stocks:

ADPACNADSBBSIEFX
Market cap$71.8 B$121.0 B$7.8 B$640.6 M$16.6 B
Total shares435.2 M616.7 M52.4 M7.4 M120.8 M
Float shares434.6 M635.9 M47.2 M6.7 M120.1 M
  - Institutional holdings (%)81.8%72.5%97.2%81.4%88.7%
  - Insider holdings (%)0.2%0.2%2.8%4.2%0.4%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

ADP summary

Monday, July 15th, 2019
Open$165.48
Close$165.01
Day range$164.69 - $166.16
Previous close$165.13
Session gain-0.07%
Average true range$2.52
50d mov avg$162.75
100d mov avg$159.64
200d mov avg$149.18
Daily patternlt03a
Weekly pattern lb02a

Automatic Data Processing performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. In the following table, we compare Automatic Data Processing performance to Accenture, Alliance Data Systems, Barrett Business Services, Equifax, Fidelity National Financial, Intuit, Insperity, Paychex, TriNet and WageWorks:
Stock3m6m12m
ADPAutomatic Data Pr...2.07%23.29%22.63%
ACNAccenture9.84%35.29%18.77%
ADSAlliance Data Sys...-16.96%-9.97%-37.75%
BBSIBarrett Business ...13.44%46.48%-10.05%
EFXEquifax9.48%32.49%9.91%
FNFFidelity National...8.18%24.81%16.18%
INTUIntuit9.80%32.58%32.30%
NSPInsperity1.60%38.41%36.65%
PAYXPaychex5.87%24.54%25.48%
TNETTriNet15.44%65.55%28.82%
WAGEWageWorks23.75%82.37%-2.96%

Automatic Data Processing competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for Automatic Data Processing. We selected 10 companies as Automatic Data Processing competitors as they are in the same industry or have similar market objectives.

Latest ADP stock news