Automatic Data Processing (ADP) stock trades up, “Hold” rating reaffirmed by BMO Capital Markets Analysts

Automatic Data Processing (NYSE: ADP) shares rose on Thursday February 2 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.

Meanwhile, The Dow Jones Industrial Average DJIA, -0.10% fell 34 points, or 0.2%, to 19,858. The S&P 500 SPX, -0.11% lost 4 points to 2,276, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.05% slid 16 points, or 0.3%, to 5,626. Among the most actively traded Nasdaq stocks was Facebook Inc FB, +0.31% which fell 0.7% a day after it reported its quarterly results.

Automatic Data Processing (NYSE: ADP) had its Hold rating reiterated by equities researchers at BMO Capital Markets in a research note to investors. BMO Capital Markets currently has a rating of Hold on the shares. The one-year price target of $100.31 is higher than the opening price of $95.23, that has caused a fair amount of other analysts to comment on the stock recently. Looking back over the last year, Automatic Data Processing stock has a high of $104.09. Typically, after analysts publish a “reiterated rating” report on a stock, they will subsequently issue other revisions, usually followed by a price target change.

Shares of Automatic Data Processing (NYSE: ADP) opened at $95.23 yesterday and traded in a range between, $95.03 and $96.77, and last traded at $96.75, which represents a spike of $1.50 over the previous closing price.

Automatic Data Processing (NYSE: ADP) currently has a market cap of 43.65B.

Automatic Data Processing (NYSE: ADP) Average Daily Trading Volume

The stock’s average daily volume is 2,168,400 shares out of a total float 450,482,000 and some 773,894 shares traded hands yesterday, 101 percent lower than normal. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.

However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these have substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.

Automatic Data Processing (NYSE: ADP) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.

With that in mind, Automatic Data Processing (NYSE: ADP) now has a 50-day MA of $102.19 and 200-day MA of $93.37. It has traded in a 52-week range between $78.98 – 104.09 and today’s last price is 7.05%% lower than the 52 week high of $104.09.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings by at least 25% over 3 consecutive years.

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