ADT Inc. (NYSE:ADT) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• ADT Inc. has received a consensus recommendation of "Moderate Buy" from five analysts, with an average 12-month price target of $9.1750.
• The company recently reported earnings of $0.23 per share, surpassing estimates, with revenues of $1.29 billion for the quarter, reflecting a 6.8% year-over-year increase.
• ADT will pay a quarterly dividend of $0.055 per share on October 2nd, resulting in an annualized dividend yield of 2.5%.

ADT Inc. (NYSE:ADT - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the five analysts that are currently covering the stock, Marketbeat reports. Three investment analysts have rated the stock with a hold rating, one has given a buy rating and one has given a strong buy rating to the company. The average 12 month price objective among analysts that have issued a report on the stock in the last year is $9.1750.

Several analysts have recently commented on the company. Morgan Stanley raised their price target on ADT from $9.00 to $9.50 and gave the company an "equal weight" rating in a report on Monday, July 28th. Wall Street Zen cut ADT from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 2nd. Zacks Research raised ADT to a "strong-buy" rating in a report on Tuesday. Finally, Royal Bank Of Canada reissued a "sector perform" rating and issued a $9.00 price target on shares of ADT in a report on Monday, April 21st.

ADT Stock Down 1.3%

ADT stock opened at $8.66 on Friday. ADT has a twelve month low of $6.68 and a twelve month high of $8.81. The stock has a 50 day moving average of $8.40 and a two-hundred day moving average of $8.08. The company has a current ratio of 0.46, a quick ratio of 0.37 and a debt-to-equity ratio of 1.84. The stock has a market capitalization of $7.20 billion, a price-to-earnings ratio of 13.12 and a beta of 1.20.

ADT (NYSE:ADT - Get Free Report) last posted its quarterly earnings results on Thursday, July 24th. The security and automation business reported $0.23 EPS for the quarter, beating the consensus estimate of $0.19 by $0.04. The business had revenue of $1.29 billion during the quarter, compared to analysts' expectations of $1.28 billion. ADT had a return on equity of 18.58% and a net margin of 12.30%. The company's quarterly revenue was up 6.8% compared to the same quarter last year. During the same period last year, the firm earned $0.17 EPS. As a group, research analysts expect that ADT will post 0.7 earnings per share for the current year.

ADT Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 2nd. Investors of record on Thursday, September 11th will be issued a dividend of $0.055 per share. The ex-dividend date of this dividend is Thursday, September 11th. This represents a $0.22 annualized dividend and a yield of 2.5%. ADT's payout ratio is currently 33.33%.

Insider Transactions at ADT

In other ADT news, major shareholder Apollo Management Holdings Gp, sold 71,000,000 shares of the firm's stock in a transaction on Monday, July 28th. The stock was sold at an average price of $8.31, for a total transaction of $590,010,000.00. Following the completion of the transaction, the insider owned 112,650,366 shares of the company's stock, valued at approximately $936,124,541.46. This trade represents a 38.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 2.70% of the company's stock.

Hedge Funds Weigh In On ADT

Several hedge funds have recently bought and sold shares of the stock. Brevan Howard Capital Management LP increased its position in ADT by 3,162.9% during the second quarter. Brevan Howard Capital Management LP now owns 1,363,314 shares of the security and automation business's stock worth $11,547,000 after buying an additional 1,321,532 shares in the last quarter. Balyasny Asset Management L.P. grew its position in shares of ADT by 35.9% in the second quarter. Balyasny Asset Management L.P. now owns 3,292,896 shares of the security and automation business's stock valued at $27,891,000 after purchasing an additional 870,702 shares during the period. Ameriprise Financial Inc. grew its position in shares of ADT by 76.2% in the second quarter. Ameriprise Financial Inc. now owns 1,297,986 shares of the security and automation business's stock valued at $10,994,000 after purchasing an additional 561,494 shares during the period. AQR Capital Management LLC grew its position in shares of ADT by 22.7% in the second quarter. AQR Capital Management LLC now owns 16,097,474 shares of the security and automation business's stock valued at $135,702,000 after purchasing an additional 2,978,376 shares during the period. Finally, CTC Alternative Strategies Ltd. purchased a new stake in shares of ADT in the second quarter valued at $147,000. Hedge funds and other institutional investors own 87.22% of the company's stock.

About ADT

ADT Inc provides security, interactive, and smart home solutions to residential and small business customers in the United States. It operates through two segments, Consumer and Small Business, and Solar. The company provides burglar and life safety alarms, smart security cameras, smart home automation systems, and video surveillance systems.

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