ADT (NYSE:ADT) Given Underweight Rating at Barclays

Key Points

• Barclays reissued an underweight rating on ADT with a $7.00 price target, implying roughly a 3.86% upside from the company's current price.
• Overall analyst coverage is mixed: ADT has an average consensus rating of Hold with a mean target of $8.38 and a breakdown of 2 Buys, 4 Holds and 1 Sell.
• ADT recently beat estimates with $0.23 EPS (vs. $0.20 expected) and reported revenue of $2.55B; shares opened at $6.74P/E of 10.21 and a market cap of about $5.53B.

ADT (NYSE:ADT - Get Free Report)'s stock had its "underweight" rating reissued by Barclays in a research note issued on Friday, MarketBeat Ratings reports. They presently have a $7.00 target price on the security and automation business' stock. Barclays's target price points to a potential upside of 3.86% from the company's current price.

A number of other brokerages have also recently issued reports on ADT. Citigroup lowered their target price on ADT from $10.00 to $8.50 and set a "buy" rating for the company in a report on Wednesday. Zacks Research upgraded ADT from a "strong sell" rating to a "hold" rating in a report on Monday, February 16th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of ADT in a research note on Monday, December 29th. The Goldman Sachs Group reiterated a "buy" rating and issued a $10.40 price objective on shares of ADT in a report on Monday. Finally, Morgan Stanley cut their target price on shares of ADT from $9.00 to $7.00 and set an "equal weight" rating on the stock in a research report on Tuesday. Two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, ADT presently has an average rating of "Hold" and a consensus price target of $8.38.

ADT Price Performance

Shares of NYSE:ADT opened at $6.74 on Friday. ADT has a one year low of $6.65 and a one year high of $8.94. The company has a debt-to-equity ratio of 1.95, a current ratio of 0.93 and a quick ratio of 0.54. The company has a market cap of $5.53 billion, a price-to-earnings ratio of 10.21 and a beta of 1.00. The firm has a 50 day simple moving average of $7.93 and a 200 day simple moving average of $8.27.

ADT (NYSE:ADT - Get Free Report) last posted its earnings results on Monday, March 2nd. The security and automation business reported $0.23 earnings per share for the quarter, topping analysts' consensus estimates of $0.20 by $0.03. ADT had a net margin of 11.60% and a return on equity of 19.16%. The firm had revenue of $2.55 billion for the quarter, compared to analysts' expectations of $1.30 billion. During the same quarter in the previous year, the firm posted $0.20 earnings per share. The company's revenue was up 1.3% on a year-over-year basis. ADT has set its FY 2026 guidance at 0.890-0.890 EPS. Research analysts predict that ADT will post 0.7 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Norges Bank bought a new stake in shares of ADT in the 2nd quarter valued at $219,825,000. AQR Capital Management LLC raised its stake in ADT by 124.6% during the third quarter. AQR Capital Management LLC now owns 36,160,099 shares of the security and automation business's stock worth $314,954,000 after buying an additional 20,062,625 shares during the last quarter. Vanguard Group Inc. lifted its holdings in ADT by 42.7% in the third quarter. Vanguard Group Inc. now owns 64,858,510 shares of the security and automation business's stock valued at $564,918,000 after buying an additional 19,413,112 shares during the period. LSV Asset Management lifted its holdings in ADT by 97.1% in the second quarter. LSV Asset Management now owns 24,727,193 shares of the security and automation business's stock valued at $209,439,000 after buying an additional 12,182,009 shares during the period. Finally, Arrowstreet Capital Limited Partnership boosted its position in ADT by 179.6% during the second 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 acquiring an additional 8,796,249 shares during the last quarter. Institutional investors own 87.22% of the company's stock.

ADT Company Profile

ADT Inc is a leading provider of security and automation solutions for residential and commercial customers. The company offers a comprehensive suite of products and services, including intrusion detection systems, video surveillance, fire and carbon monoxide monitoring, and integrated smart home automation platforms. Through professional installation, continuous monitoring, and a network of 24/7 monitoring centers, ADT helps customers protect their properties, assets and loved ones.

Founded in 1874 as the American District Telegraph Company, ADT has evolved from one of the first telegraph-based alarm services into a modern security technology enterprise.

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