Analysts at Wedbush initiated coverage on Automatic Data Processing Inc. (NASDAQ: ADP) stock, starting the company at Neutral. As a means of comparison, a number of other analysts have commented on the shares recently, and the company has secured a consensus one-year price target of $92.50, $88.57. Automatic Data Processing Inc.stock has a 52-week high of $96.00.After initiating coverage,, analysts and brokerage firms will subsequently issue periodic updates. Changes in price targets are not unusual.
Meanwhile, U.S. stocks saw their biggest selloff since June 24, (Brexit) on Friday after comments from a voting member of the Federal Reserve’s policy-setting committee suggested a September rate hike was still a possibility.
The Dow Jones Industrial Average dropped 394 points, or 2.13% to 18085.
The S&P 500 shed 53 points, or 2.45% to 2127, while the Nasdaq Composite erased 133 points, or 2.54% to 5125.
Stocks were not alone in declines on Friday.
Global oil prices, after rallying Thursday, dropped more than 3% Friday to trade just above $45 a barrel.
Gold prices also traded lower, shedding more than 0.6% to trade around $1,332.
Typically, after analysts publish an “initiating coverage” report on a stock, they will subsequently issue periodic updates.
Shares of Automatic Data Processing Inc. (NASDAQ: ADP) opened at $88.57 and traded in a range between, $86.55 and $88.99 on Friday, and last traded at $86.57, which represents a change of $ -2.90 over the previous closing price.
Automatic Data Processing Inc. (NASDAQ: ADP) currently has a market cap of 39.49B
The stocks average daily volume is 1,799,310 shares out of a total float 455,428,000 of and some 2,014,168 shares crossed the trading desk yesterday, 100 percent higher than normal. Significant increases in trading volume and price appreciation together could signal heavy volume accumulation 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 simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are researching.
By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind Automatic Data Processing Inc. (NASDAQ: ADP) now has a 50-day MA is $90.26 and 200-day MA is $89.18, and it has traded in a 52-week range between $76.65 – 96.00 and today’s last price is -9.82 percent off the 52 week high.
Earnings growth is an important factor to look at when buying stocks and investors look for companies that have grown their earnings at least 25% or more for the past 3 years.
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