Automatic Data Processing Inc (ADP): A Technical Analysis

Automatic Data Processing Inc (NASDAQ: ADP) has a higher price-to-earnings ratio of 33.43x compared to its average ratio. ADP has 36-month beta value of 0.80. Analysts have mixed views on the stock, with 2 analysts rating it as a “buy,” 2 as “overweight,” 13 as “hold,” and 0 as “sell.”

The public float for ADP is 405.38M, and currently, short sellers hold a 1.52% ratio of that float. The average trading volume of ADP on June 04, 2025 was 1.91M shares.

ADP) stock’s latest price update

Automatic Data Processing Inc (NASDAQ: ADP)’s stock price has gone rise by 0.22 in comparison to its previous close of 325.80, however, the company has experienced a 0.25% increase in its stock price over the last five trading days. zacks.com reported 2025-06-02 that We start a full week of trading this morning slightly in the red, based once again on — you guessed it — trade tensions. On Friday, President Trump accused China of violating its tariff agreement with the U.S., and late in the trading day Trump announced he would be doubling steel tariffs from 25% to 50%.

ADP’s Market Performance

Automatic Data Processing Inc (ADP) has experienced a 0.25% rise in stock performance for the past week, with a 7.56% rise in the past month, and a 4.18% rise in the past quarter. The volatility ratio for the week is 0.19%, and the volatility levels for the past 30 days are at 0.66% for ADP. The simple moving average for the past 20 days is 2.87% for ADP’s stock, with a 10.31% 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.

UBS gave a rating of “Neutral” to ADP, setting the target price at $235 in the report published on November 07th of the previous year.

ADP Trading at 7.05% 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 -0.45% of loss for the given period.

Insider Trading

Reports are indicating that there were more than several insider trading activities at ADP starting from D’Ambrosio Christopher, who sale 472 shares at the price of $311.82 back on May 12 ’25. After this action, D’Ambrosio Christopher now owns 7,491 shares of Automatic Data Processing Inc, valued at $147,179 using the latest closing price.

D’Ambrosio Christopher, the Officer of Automatic Data Processing Inc, proposed sale 472 shares at $311.82 during a trade that took place back on May 12 ’25, which means that D’Ambrosio Christopher is holding shares at $147,179 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 6.64. 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

To put it simply, Automatic Data Processing Inc (ADP) has had a better performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others 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.

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