ADT (NYSE:ADT) Cut to "Hold" at Zacks Research

Key Points

• ADT has been downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating, reflecting a cautious outlook on the company's future performance.
• Several analysts have recently changed their target prices for ADT, with Morgan Stanley raising it to $9.50 and Citigroup increasing it to $10.00, while ADT currently has a consensus rating of "Hold" with an average target price of $9.34.
• Major shareholder Apollo Management sold 71 million shares of ADT stock, decreasing their position by 38.66%, which raises concerns about insider confidence in the company’s future.

ADT (NYSE:ADT - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

Several other research firms have also recently issued reports on ADT. Morgan Stanley boosted their target price on shares of ADT from $9.00 to $9.50 and gave the company an "equal weight" rating in a research note on Monday, July 28th. Wall Street Zen upgraded shares of ADT from a "buy" rating to a "strong-buy" rating in a research report on Saturday. Finally, Citigroup increased their target price on shares of ADT from $9.00 to $10.00 and gave the stock a "buy" rating in a research note on Tuesday, August 26th. Two investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $9.34.

ADT Trading Down 1.8%

Shares of NYSE:ADT opened at $8.59 on Monday. The company has a quick ratio of 0.37, a current ratio of 0.46 and a debt-to-equity ratio of 1.84. ADT has a 52-week low of $6.68 and a 52-week high of $8.94. The stock has a market cap of $7.14 billion, a price-to-earnings ratio of 13.01 and a beta of 1.13. The business has a 50-day moving average price of $8.59 and a 200-day moving average price of $8.30.

ADT (NYSE:ADT - Get Free Report) last posted its earnings results on Thursday, July 24th. The security and automation business reported $0.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.19 by $0.04. ADT had a net margin of 12.30% and a return on equity of 18.58%. The company had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.28 billion. During the same period in the previous year, the firm posted $0.17 earnings per share. The firm's quarterly revenue was up 6.8% on a year-over-year basis. ADT has set its FY 2025 guidance at 0.810-0.890 EPS. Equities analysts predict that ADT will post 0.7 EPS for the current year.

Insiders Place Their Bets

In other news, major shareholder Apollo Management Holdings Gp, sold 71,000,000 shares of the business's stock in a transaction dated Monday, July 28th. The shares were sold at an average price of $8.31, for a total transaction of $590,010,000.00. Following the transaction, the insider owned 112,650,366 shares of the company's stock, valued at approximately $936,124,541.46. The trade was a 38.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 2.70% of the company's stock.

Hedge Funds Weigh In On ADT

Hedge funds have recently modified their holdings of the business. Norges Bank acquired a new position in ADT in the second quarter valued at about $219,825,000. Allianz Asset Management GmbH lifted its holdings in shares of ADT by 2,089.4% in the 2nd quarter. Allianz Asset Management GmbH now owns 14,638,575 shares of the security and automation business's stock worth $123,989,000 after acquiring an additional 13,969,976 shares during the last quarter. LSV Asset Management boosted its position in shares of ADT by 97.1% during the 2nd quarter. LSV Asset Management now owns 24,727,193 shares of the security and automation business's stock worth $209,439,000 after purchasing an additional 12,182,009 shares during the period. Arrowstreet Capital Limited Partnership increased its holdings in ADT by 179.6% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 13,693,517 shares of the security and automation business's stock valued at $115,984,000 after purchasing an additional 8,796,249 shares during the last quarter. Finally, Millennium Management LLC raised its position in ADT by 668.5% in the first quarter. Millennium Management LLC now owns 7,504,051 shares of the security and automation business's stock valued at $61,083,000 after purchasing an additional 6,527,539 shares during the period. 87.22% of the stock is currently owned by hedge funds and other institutional investors.

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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