ADT (NYSE:ADT) Rating Lowered to Buy at Wall Street Zen

Key Points

• ADT has been downgraded from a "strong-buy" to a "buy" rating by Wall Street Zen, while Citigroup increased its price target from $9.00 to $10.00.
• The company reported earnings per share of $0.23 for the last quarter, exceeding estimates, with a year-over-year revenue increase of 6.8% to $1.29 billion.
• Insider Apollo Management sold 71 million shares of ADT, reducing their position by 38.66%, valuing the remaining shares at approximately $936.1 million.

ADT (NYSE:ADT - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Sunday.

A number of other brokerages also recently weighed in on ADT. Citigroup boosted their price target on ADT from $9.00 to $10.00 and gave the company a "buy" rating in a report on Tuesday, August 26th. Morgan Stanley boosted 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. Finally, Zacks Research upgraded ADT to a "strong-buy" rating in a research report on Tuesday, August 12th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, ADT has an average rating of "Moderate Buy" and an average target price of $9.34.

ADT Price Performance

ADT stock opened at $8.69 on Friday. 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 $8.89. The stock's 50 day moving average is $8.54 and its two-hundred day moving average is $8.21. The company has a market capitalization of $7.22 billion, a PE ratio of 13.16 and a beta of 1.13.

ADT (NYSE:ADT - Get Free Report) last issued its quarterly earnings results on Thursday, July 24th. The security and automation business reported $0.23 earnings per share for the quarter, beating analysts' consensus estimates of $0.19 by $0.04. ADT had a return on equity of 18.58% and a net margin of 12.30%.The business 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 business earned $0.17 EPS. The business'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. Analysts predict that ADT will post 0.7 earnings per share for the current fiscal year.

Insider Transactions at ADT

In other ADT news, major shareholder Apollo Management Holdings Gp, sold 71,000,000 shares of the business'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 in the company, 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.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Osaic Holdings Inc. lifted its holdings in shares of 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 period. American Trust acquired a new stake in shares of ADT in the second quarter valued at $151,000. Squarepoint Ops LLC acquired a new stake in shares of ADT in the second quarter valued at $5,837,000. Thrivent Financial for Lutherans acquired a new stake in shares of ADT in the second quarter valued at $1,317,000. Finally, Neuberger Berman Group LLC lifted its holdings in shares of ADT by 29.1% in the second quarter. Neuberger Berman Group LLC now owns 135,617 shares of the security and automation business's stock valued at $1,149,000 after buying an additional 30,608 shares during the period. Institutional investors and hedge funds own 87.22% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.