ADT Inc. (NYSE:ADT) Receives Consensus Rating of "Hold" from Analysts

Key Points

• ADT Inc. has received a consensus rating of "Hold" from analysts, with four holding and three buying ratings; the average 12-month price target is set at $9.34.
• Major shareholder Apollo Management sold 71 million shares of ADT, reducing their ownership by 38.66%, while insiders now hold only 2.70% of the stock.
• ADT recently announced a quarterly dividend of $0.055 per share, representing an annualized yield of 2.5% and a payout ratio of 33.33%.

ADT Inc. (NYSE:ADT - Get Free Report) has been given a consensus rating of "Hold" by the seven analysts that are covering the company, Marketbeat reports. Four analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average 12-month price target among brokerages that have covered the stock in the last year is $9.34.

Several equities analysts have recently issued reports on the company. Wall Street Zen cut ADT from a "strong-buy" rating to a "buy" rating in a research note on Sunday, September 28th. Zacks Research cut ADT from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 22nd. Citigroup boosted their target price on ADT from $9.00 to $10.00 and gave the stock a "buy" rating in a research note on Tuesday, August 26th. Morgan Stanley boosted their target price on ADT from $9.00 to $9.50 and gave the stock an "equal weight" rating in a research note on Monday, July 28th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of ADT in a research note on Saturday, September 27th.

Insiders Place Their Bets

In related news, major shareholder Apollo Management Holdings Gp, sold 71,000,000 shares of the business's stock in a transaction that occurred 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 sale, the insider owned 112,650,366 shares in the company, valued at $936,124,541.46. The trade was a 38.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 2.70% of the stock is currently owned by insiders.

Institutional Investors Weigh In On ADT

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Corient Private Wealth LLC purchased a new stake in ADT in the second quarter valued at approximately $219,000. Osaic Holdings Inc. lifted its stake in ADT by 39.9% in the second quarter. Osaic Holdings Inc. now owns 4,351 shares of the security and automation business's stock valued at $37,000 after buying an additional 1,240 shares during the last quarter. American Trust purchased a new stake in ADT in the second quarter valued at approximately $151,000. Squarepoint Ops LLC purchased a new stake in ADT in the second quarter valued at approximately $5,837,000. Finally, Thrivent Financial for Lutherans purchased a new stake in ADT in the second quarter valued at approximately $1,317,000. Hedge funds and other institutional investors own 87.22% of the company's stock.

ADT Stock Performance

Shares of ADT opened at $8.80 on Friday. The stock has a 50-day simple moving average of $8.63 and a 200-day simple moving average of $8.36. The company has a debt-to-equity ratio of 1.84, a quick ratio of 0.37 and a current ratio of 0.46. The stock has a market capitalization of $7.31 billion, a PE ratio of 13.33 and a beta of 1.05. ADT has a 1 year low of $6.68 and a 1 year high of $8.94.

ADT (NYSE:ADT - Get Free Report) last announced its quarterly earnings data on Thursday, July 24th. The security and automation business reported $0.23 earnings per share (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 business's quarterly revenue was up 6.8% compared to the same quarter last year. During the same quarter last year, the business posted $0.17 EPS. ADT has set its FY 2025 guidance at 0.810-0.890 EPS. On average, analysts predict that ADT will post 0.7 earnings per share for the current fiscal year.

ADT Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 2nd. Investors of record on Thursday, September 11th were paid a dividend of $0.055 per share. The ex-dividend date was Thursday, September 11th. This represents a $0.22 annualized dividend and a yield of 2.5%. ADT's payout ratio is presently 33.33%.

ADT Company Profile

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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