In recent trading, shares of Automatic Data Processing Inc. (Symbol: ADP) have crossed above the average analyst 12-month target price of $300.67, changing hands for $303.26 per share. When a stock hits an analyst’s target price, the analyst typically has two options: they can either downgrade the stock due to valuation concerns, or they can adjust their target price upward to reflect positive developments. The decision often depends on the company’s fundamental business outlook and whether recent changes support a higher valuation.
Within the Zacks coverage universe, analysts have set 15 different targets for Automatic Data Processing Inc. The average target is merely a mathematical figure, highlighting the range of opinions. Some analysts have lower targets, with one forecasting a price of $281.00, while another is optimistic, setting a target as high as $325.00. The standard deviation for these targets is $11.604, indicating some disagreement among experts.
The purpose of analyzing the average ADP price target is to leverage collective insights from various analysts, rather than relying solely on one viewpoint. With ADP’s stock price exceeding the average target of $300.67 per share, investors are encouraged to reassess the company’s performance. They now face a critical question: is $300.67 just a milestone on the path to a higher target, or has the stock become overvalued, suggesting it may be time to scale back their positions? Below is a summary of the current opinions from analysts covering Automatic Data Processing Inc:
| Recent ADP Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month 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: | 1 | 1 | 1 | 1 |
| Average rating: | 2.78 | 2.78 | 2.78 | 2.78 |
The average rating indicated in the last row ranges from 1 to 5, where 1 is considered a Strong Buy and 5 is a Strong Sell. This article utilized data provided by Zacks Investment Research via Quandl.com. For the latest Zacks research report on ADP, you can access it for free.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
