Shares of Automatic Data Processing Inc. (NASDAQ: ADP) were downgraded by analysts at Vetr Inc. in a note to their investors today. Vetr Inc. currently has a rating of Buy on the stock. The one-year price target of $93.08 is above the opening price of $87.82, that has caused a fair amount of other analysts to comment on the company recently. Looking back over the last year, Automatic Data Processing Inc. stock has a high of $96.00. Downgrades are more common when analysts consider that the future prospects for the security have dropped from the initial recommendation, often due to a material and crucial digression in the company’s procedures, future outlook or industry.
The Fed stood pat on interest rates on Wednesday, helping stocks to mostly higher levels but Chairwoman Janet Yellen indicated an interest rate hike is likely by year’s end
On Wednesday, the S&P 500 SPX, +1.09% ended 1.1% higher, while the Dow DJIA, +0.90% jumped by 0.9%, or 164 points, as each exchange finished in positive territory for a second consecutive day.
The tech-heavy Nasdaq Composite COMP, +1.03% tacked on 1% and scored a record closing high.
S&P 500 futures ESZ6, +0.36% were up 6.55 points, or 0.3%, to 2,162.75 early Thursday, while Dow Jones Industrial Average futures YMZ6, +0.37% rose 58 points, or 0.3%, to 18,276. Nasdaq-100 futures NQZ6, +0.39% gained 16.25 points, or 0.3%, to 4,866.25.
Yesterday Automatic Data Processing Inc. (NASDAQ: ADP) shares last traded at $88.88, which is a jump of $1.09 compared to the previous closing price. Opening at $87.82, they ranged from $87.71 and $88.97 throughout the day.
Automatic Data Processing Inc. (NASDAQ: ADP) now has a market cap of 40.54B.
1,796,977 shares traded hands yesterday, higher than the norm, out of a total float 455,428,000. Significant expansions in trading volume and price appreciation together could signal considerable volume aggregation by institutional investors.
While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks delivers a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
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 researching thousands of stocks, so it is good validation to see them buying a stock you are considering.
Traders can make more effective judgments on trades when they track the activity of professional investors.
Trades for Automatic Data Processing Inc. (NASDAQ: ADP) have ranged from $76.65 – 96.00, and the stock now has a 50-day MA of $89.12 and 200-day MA of $89.31. Today’s last price is 0.07% under the 52 week high of $96.00.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings by at least 25% for 3 consecutive years.
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