The stock price of Automatic Data Processing Inc (NASDAQ: ADP) has jumped by 1.12% compared to previous close of $305.05. Despite this, the company has seen a gain of 1.82% in its stock price over the last five trading days. zacks.com reported 2025-07-02 that Private Payrolls Unexpectedly Came in Negative in June.
Is It Worth Investing in Automatic Data Processing Inc (NASDAQ: ADP) Right Now?
Automatic Data Processing Inc (NASDAQ: ADP) has a price-to-earnings ratio of 31.58x that is above its average ratio. Additionally, the 36-month beta value for ADP is 0.82. There are mixed opinions on the stock, with 2 analysts rating it as a “buy”, 2 rating it as “overweight”, 13 rating it as “hold”, and 0 rating it as “sell”.
The public float for ADP is 405.38M and currently, short sellers hold a 1.22% ratio of that float. The average trading volume of ADP on July 03, 2025 was 1.83M shares.
ADP’s Market Performance
ADP’s stock has seen a 1.82% increase for the week, with a -5.53% drop in the past month and a 0.41% gain in the past quarter. The volatility ratio for the week is 2.10%, and the volatility levels for the past 30 days are at 1.77% for Automatic Data Processing Inc. The simple moving average for the past 20 days is -0.52% for ADP’s stock, with a 2.79% simple moving average for the past 200 days.
Analysts’ Opinion of ADP
Many brokerage firms have already submitted their reports for ADP stocks, with BofA Securities repeating the rating for ADP by listing it as a “Neutral”. The predicted price for ADP in the upcoming period, according to BofA Securities is $243 based on the research report published on January 17, 2024 of the previous year 2024.
RBC Capital Mkts gave a rating of “Sector Perform” to ADP, setting the target price at $267 in the report published on September 05th of the previous year.
ADP Trading at -0.83% from the 50-Day Moving Average
After a stumble in the market that brought ADP to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -6.50% of loss for the given period.
Volatility was left at 1.77%, however, over the last 30 days, the volatility rate increased by 2.10%, as shares sank -5.37% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +5.40% upper at present.
During the last 5 trading sessions, ADP rose by +1.89%, which changed the moving average for the period of 200-days by +11.24% in comparison to the 20-day moving average, which settled at $310.11. In addition, Automatic Data Processing Inc saw 30.89% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at ADP starting from Michaud Brian L., who sold 206 shares at the price of $308.18 back on Jul 01 ’25. After this action, Michaud Brian L. now owns 11,909 shares of Automatic Data Processing Inc, valued at $63,485 using the latest closing price.
Michaud Brian L., the Officer of Automatic Data Processing Inc, proposed sale 206 shares at $308.18 during a trade that took place back on Jul 01 ’25, which means that Michaud Brian L. is holding N/A shares at $63,485 based on the most recent closing price.
Stock Fundamentals for ADP
Current profitability levels for the company are sitting at:
- 0.17% for the present operating margin
- 0.47% for the gross margin
The net margin for Automatic Data Processing Inc stands at 0.2%. The total capital return value is set at 0.33%. Equity return is now at value 76.29%, with 6.63% for asset returns.
Based on Automatic Data Processing Inc (ADP), the company’s capital structure generated 0.42 points at debt to capital in total, while cash flow to debt ratio is standing at 1.13. The debt to equity ratio resting at 0.73. The interest coverage ratio of the stock is 7.9.
Currently, EBITDA for the company is 5.8 billion with net debt to EBITDA at 0.26. When we switch over and look at the enterprise to sales, we see a ratio of 6.27. The receivables turnover for the company is 5.69for trailing twelve months and the total asset turnover is 0.36. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.02.
Conclusion
In conclusion, Automatic Data Processing Inc (ADP) has seen better performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
