ADP stock: buy or sell?

ADP stock price: $144.67 4.14% At close on May 27th, 2020

Updated on:
May 27th, 2020

3

Shares of Automatic Data Processing closed today at $144.67 and rocketed an exceptional 4.14%. Counting Wednesday, it's been 3 green days in a row, adding $11.35 or 8.42%.

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?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Automatic Data Processing stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Automatic Data Processing stock a buy?

Banks and financial institutions post stock ratings everyday. Unfortunately, we couldn't detect any rating for ADP stock for the last 30 days.

ADP stock analysis

Daily outlook

Automatic Data Processing shares rocketed 4.14% to $144.67 today.

Automatic Data Processing rocketed an exceptional 4.14% and closed at $144.67. Since price and SMA200d lines crossed down on February, ADP fell $-20.64 per share (-12.49%). ADP broke out again over $137.62 after a 4.16% correction started on May/19. On February, ADP hit new all time highs, pushing higher previous ATH of $180.17 recorded on February. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

ADP stock chart (daily)

Weekly outlook

Automatic Data Processing shares climbed 7.27% this week, ending at $144.67. By mid May ADP plummed a bloodcurdling -8.27% in just one week.

If you observe the weekly chart, price is in a simple uptrend, tested $130.64 level and now climbing back aiming its last top at $149.78. Not so far away is the last all-time high Automatic Data Processing marked by mid February, but since then it dropped a 20.16%. Since price and 40-weeks moving average lines crossed down late February, ADP fell $-32.81 per share (-18.49%). Trading stocks that are below the 40-weeks (that is, 200-days) moving average line is not recommended by many experts, as it indicates that the stock has not enough institutional support.

ADP stock chart (weekly)

ADP stock price history

ADP stock went public on March 17th, 1980 with a price of $0.001. Since then, ADP stock grew a inf%, with an average of inf% per year. If you had invested right after ADP's IPO a $1,000 in ADP stock in 1980, it would worth $inf today.

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

ADP stock historical price chart

ADP stock reached all-time highs on February with a price of $181.20.

ADP stock price target

Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we have not found any price prediction for Automatic Data Processing stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

, when Automatic Data Processing posted its last earnings report, it . As soon as we get its actual EPS from the earnings report, we will update this review.
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

In 2018, Automatic Data Processing annual turnover escalated an excellent 7.64% to $13,325.80 million dollars from $12,379.80 marked in 2017. Instead, its earnings margin (compared to revenues) depreciated to 12.16%, that is $1,620.80 million.

To have an updated picture of the financial situation of Automatic Data Processing, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Automatic Data Processing TTM sales up to March 2019 were $13,995.10 and earnings were $1,926.00 M USD. If we compare this TTM figures with the last reported annuality, we can esteem Automatic Data Processing business evolution since June 2018: Annual turnover up to March, compared to lastest yearly report, soared a good 5.02%. Regarding profit margin, Automatic Data Processing appreciated 1.60% to 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% up compared to previous quarter. Reported quarter earnings marked $753.70 million with a profit margin of 19.59%. Profit margin stepped up 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 fine growth and grew 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 buy a stock, it's worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Automatic Data Processing, 0.14% of all outstanding shares are owned by its staff.

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

The following table compares ownership indicators for other stocks related to Automatic Data Processing:

ADP
Market cap$62.2 B
Total shares429.8 M
Float shares429.0 M
  - Institutional holdings (%)82.3%
  - Insider holdings (%)0.1%
Shares in short selling0.0%

ADP summary

Wednesday, May 27th, 2020
Open$141.30
Close$144.67
Day range$139.54 - $145.13
Previous close$138.92
Session gain4.14%
Average true range$4.33
50d mov avg$135.99
100d mov avg$151.98
200d mov avg$157.69
Daily patternlb01c
Weekly pattern lb01a

Automatic Data Processing performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We chose as the bechmarking frame for Automatic Data Processing stock.
Stock3m6m12m
ADPAutomatic Data Pr...-5.93%-14.30%-7.70%

Automatic Data Processing competitors

Unfortunately, we could not find any public company that could be defined as Automatic Data Processing competitor. This doesn't mean Automatic Data Processing does not have any competitor in the market, it's just we could not detected it.

    Latest ADP stock news