ADT (NYSE:ADT) Hits New 12-Month High - Time to Buy?

Key Points

• ADT Inc.'s stock recently reached a new 52-week high of $8.91 amid significant trading activity, with a total of 937,936 shares exchanged.
• Analyst ratings show a mixed sentiment, with one upgrading to a strong-buy and others issuing buy or hold ratings, establishing an average target price of $9.34.
• ADT's recent earnings report revealed a net margin of 12.30% and year-over-year quarterly revenue growth of 6.8%, with guidance set at 0.810-0.890 EPS for FY 2025.

ADT Inc. (NYSE:ADT - Get Free Report)'s stock price reached a new 52-week high on Monday . The company traded as high as $8.90 and last traded at $8.91, with a volume of 937936 shares changing hands. The stock had previously closed at $8.83.

Analyst Ratings Changes

A number of analysts have weighed in on the stock. Wall Street Zen downgraded shares of ADT from a "strong-buy" rating to a "buy" rating in a research report on Sunday, September 7th. Morgan Stanley raised their price objective on shares of ADT from $9.00 to $9.50 and gave the stock an "equal weight" rating in a research report on Monday, July 28th. Zacks Research upgraded ADT to a "strong-buy" rating in a report on Tuesday, August 12th. Finally, Citigroup increased their target price on ADT from $9.00 to $10.00 and gave the stock a "buy" rating in a report on Tuesday, August 26th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $9.34.

ADT Stock Performance

The company has a debt-to-equity ratio of 1.84, a current ratio of 0.46 and a quick ratio of 0.37. The company has a 50 day simple moving average of $8.57 and a 200-day simple moving average of $8.26. The firm has a market cap of $7.40 billion, a PE ratio of 13.49 and a beta of 1.13.

ADT (NYSE:ADT - Get Free Report) last released its 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. ADT had a net margin of 12.30% and a return on equity of 18.58%. The company had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.28 billion. During the same quarter last year, the firm earned $0.17 EPS. The firm's quarterly revenue was up 6.8% compared to the same quarter last year. ADT has set its FY 2025 guidance at 0.810-0.890 EPS. As a group, equities research analysts anticipate that ADT Inc. will post 0.7 EPS for the current year.

ADT Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 2nd. Shareholders of record on Thursday, September 11th will be given a $0.055 dividend. The ex-dividend date is Thursday, September 11th. This represents a $0.22 annualized dividend and a yield of 2.5%. ADT's payout ratio is presently 33.33%.

Insiders Place Their Bets

In other ADT 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 value of $590,010,000.00. Following the completion of the sale, the insider owned 112,650,366 shares in the company, valued at approximately $936,124,541.46. The trade was a 38.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 2.70% of the company's stock.

Institutional Trading of ADT

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Ameriprise Financial Inc. raised its holdings in shares of ADT by 22.1% during the fourth quarter. Ameriprise Financial Inc. now owns 456,839 shares of the security and automation business's stock valued at $3,157,000 after acquiring an additional 82,623 shares in the last quarter. Bank of America Corp DE grew its stake in shares of ADT by 48.8% in the fourth quarter. Bank of America Corp DE now owns 1,642,263 shares of the security and automation business's stock worth $11,348,000 after acquiring an additional 538,939 shares during the last quarter. Captrust Financial Advisors grew its stake in shares of ADT by 133.1% in the fourth quarter. Captrust Financial Advisors now owns 55,356 shares of the security and automation business's stock worth $383,000 after acquiring an additional 31,610 shares during the last quarter. Deutsche Bank AG grew its stake in shares of ADT by 2,170.1% in the fourth quarter. Deutsche Bank AG now owns 370,477 shares of the security and automation business's stock worth $2,560,000 after acquiring an additional 354,157 shares during the last quarter. Finally, Focus Partners Wealth purchased a new stake in shares of ADT in the fourth quarter worth $214,000. 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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