Analysts at Vetr Inc. upgraded shares of Automatic Data Processing Inc. (NASDAQ: ADP) from Buy to Strong-Buy today.With a rating of Strong-Buy on the shares, the company has a 52-week high of $96.00. A number of other analysts have spoken on the stock in recent days, and Automatic Data Processing Inc. has secured a consensus one-year price target of $93.08, above the opening price of $87.12. Usually, after analysts give an upgrade report on a stock, they will later issue periodic updates, such as a price target change.
U.S. stocks on Monday closed essentially flat, after trading firmly higher, in a volatile session ahead of the start of a pair of closely watched central-bank policy meetings.
The Dow Jones Industrial Average DJIA, -0.02% closed down 3.63 points at 18,120.17.
The blue-chip gauge had been up by as much as 131 points earlier and traded within a 162-point range.
The S&P 500 SPX, +0.00% slipped 0.04 points to close at 2,139.12, after trading within an 18-point range
Meanwhile, the Nasdaq Composite Index COMP, -0.18% declined 9.54 points, or 0.2%, to close at 5,235.03.
Earlier, the Nasdaq Composite Index had been up by as many as 37 points and traded with a 58-point range
Yesterday Automatic Data Processing Inc. (NASDAQ: ADP) shares last traded at $87.49, a spike of $0.93 over the previous closing price. Opening at $87.12, they varied from $86.93 and $87.49 throughout the day.
Automatic Data Processing Inc. (NASDAQ: ADP) now has a market cap of 39.91B.
261,854 shares traded hands yesterday, 110 percent lower than normal, out of a total float 455,428,000. Investors often use upticks in trading volume to pinpoint substantial volume aggregation or circulation by institutional investors, so look for trading volume to pick up in the coming days.
While increased trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is crucial.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts that research thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are researching.
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 Inc. (NASDAQ: ADP) now has a 50-day MA of $89.12 and 200-day MA of $89.30. It has traded in a 52-week range between $76.65 – 96.00 and today’s last price is 0.09% lower than the 52 week high of $96.00.
Earnings growth is a critical factor to look at when buying stocks and investors seek companies that have been successful at growing their earnings at least 25% or more over a 3 year period.
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