ADP Stock Surpasses Analyst Target of $296.25: What’s Next for Investors?
In recent trading, shares of Automatic Data Processing Inc. (Symbol: ADP) have moved past the average analyst 12-month target price of $296.25, currently priced at $296.46 per share. When a stock reaches its analyst target, the expert has two options: to downgrade on valuation or to raise their price target to a higher level. Their reaction can also hinge on the company’s recent business developments — if ADP is thriving, it may warrant an upward adjustment.
Understanding Analyst Targets and What They Indicate
There are 16 different analyst targets within the Zacks coverage universe contributing to the average for Automatic Data Processing Inc. However, this average does not represent a consensus; it merely serves as a mathematical mean. For instance, while one analyst has set a lower target of $235.00, another expects a price as high as $325.00. The standard deviation stands at $20.028, indicating a range of opinions among analysts.
The value of the average ADP price target lies in its collective insight, aggregating inputs from numerous analysts instead of relying on a single viewpoint. With ADP now exceeding the average target price of $296.25 per share, it prompts investors to consider the next steps: Is this merely a checkpoint on the way to an even higher target, or is the stock now overvalued, suggesting it might be wise to take some profits?
Current Analyst Rating Breakdown for ADP
| Recent ADP Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 3 | 3 | 3 | 3 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 14 | 14 | 14 | 14 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 2 | 2 | 2 | 2 |
| Average rating: | 2.89 | 2.89 | 2.89 | 2.89 |
The average rating shown in the last row indicates a scale from 1 (Strong Buy) to 5 (Strong Sell). This analysis uses data provided by Zacks Investment Research via Quandl.com.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
