ADT (NYSE:ADT) Hits New 12-Month High on Earnings Beat

ADT Inc. (NYSE:ADT - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $8.80 and last traded at $8.64, with a volume of 8647946 shares traded. The stock had previously closed at $8.43.

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. ADT had a return on equity of 18.58% and a net margin of 12.30%. The firm had revenue of $1.29 billion for the quarter, compared to analysts' expectations of $1.28 billion. During the same quarter in the previous year, the firm posted $0.17 EPS. The firm's revenue for the quarter was up 6.8% on a year-over-year basis.

ADT Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 2nd. Investors of record on Thursday, September 11th will be issued a $0.055 dividend. This represents a $0.22 dividend on an annualized basis and a dividend yield of 2.60%. The ex-dividend date of this dividend is Thursday, September 11th. ADT's dividend payout ratio is currently 37.93%.

Analysts Set New Price Targets

A number of research firms recently weighed in on ADT. Barclays upgraded ADT from an "underweight" rating to an "equal weight" rating and upped their price target for the stock from $7.00 to $9.00 in a report on Friday, April 4th. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $9.00 target price on shares of ADT in a research note on Monday, April 21st.

Insider Transactions at ADT

In related news, major shareholder Apollo Management Holdings Gp, sold 45,000,000 shares of the company's stock in a transaction that occurred on Wednesday, June 4th. The stock was sold at an average price of $8.27, for a total value of $372,150,000.00. Following the sale, the insider owned 183,650,366 shares of the company's stock, valued at approximately $1,518,788,526.82. This represents a 19.68% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 2.70% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Allspring Global Investments Holdings LLC lifted its stake in shares of ADT by 366.3% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 74,204 shares of the security and automation business's stock worth $606,000 after purchasing an additional 58,292 shares during the period. Sei Investments Co. lifted its stake in shares of ADT by 1,132.1% during the 4th quarter. Sei Investments Co. now owns 243,702 shares of the security and automation business's stock worth $1,684,000 after purchasing an additional 223,922 shares during the period. Amalgamated Bank lifted its stake in shares of ADT by 36.8% during the 1st quarter. Amalgamated Bank now owns 19,660 shares of the security and automation business's stock worth $160,000 after purchasing an additional 5,287 shares during the period. Wealth Enhancement Advisory Services LLC lifted its stake in shares of ADT by 93.1% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 212,728 shares of the security and automation business's stock worth $1,732,000 after purchasing an additional 102,538 shares during the period. Finally, Bank of New York Mellon Corp lifted its stake in shares of ADT by 11.1% during the 1st quarter. Bank of New York Mellon Corp now owns 6,072,596 shares of the security and automation business's stock worth $49,431,000 after purchasing an additional 608,445 shares during the period. Hedge funds and other institutional investors own 87.22% of the company's stock.

ADT Trading Down 2.4%

The company has a market cap of $7.08 billion, a PE ratio of 12.82 and a beta of 1.21. The business has a 50 day simple moving average of $8.38 and a two-hundred day simple moving average of $7.96. The company has a current ratio of 0.46, a quick ratio of 0.60 and a debt-to-equity ratio of 1.85.

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.