ADT (NYSE:ADT) Sets New 52-Week Low - Time to Sell?

Key Points

• ADT hit a new 52-week low on Thursday, trading as low as $6.24 before last changing hands around $6.30, below its prior close of $6.55.
• Analyst sentiment remains mixed but cautious: ADT carries an average “Hold” rating with a consensus price target of $8.08, though several firms have recently trimmed targets and one has an underweight view.
• The company recently topped earnings expectations and pays a 3.5% dividend yield, but its stock has stayed under pressure amid moderate leverage and weak short-term price performance versus its moving averages.

ADT Inc. (NYSE:ADT - Get Free Report) hit a new 52-week low on Thursday . The stock traded as low as $6.24 and last traded at $6.2950, with a volume of 4847829 shares changing hands. The stock had previously closed at $6.55.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on ADT shares. UBS Group set a $7.50 price target on ADT in a research report on Friday, May 1st. Citigroup cut their price objective on shares of ADT from $10.00 to $8.50 and set a "buy" rating for the company in a research report on Wednesday, March 4th. Morgan Stanley decreased their target price on shares of ADT from $9.00 to $7.00 and set an "equal weight" rating on the stock in a report on Tuesday, March 3rd. Barclays restated an "underweight" rating and issued a $7.00 target price on shares of ADT in a research report on Friday, March 6th. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and set a $10.40 price target on shares of ADT in a report on Monday, March 2nd. Two research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, ADT has an average rating of "Hold" and a consensus price target of $8.08.

ADT Price Performance

The company has a debt-to-equity ratio of 1.94, a quick ratio of 0.67 and a current ratio of 0.84. The company has a market cap of $4.98 billion, a price-to-earnings ratio of 8.99 and a beta of 1.01. The business has a fifty day moving average price of $6.90 and a 200 day moving average price of $7.33.

ADT (NYSE:ADT - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The security and automation business reported $0.23 earnings per share for the quarter, beating the consensus estimate of $0.21 by $0.02. The business had revenue of $2.56 billion for the quarter, compared to analyst estimates of $1.27 billion. ADT had a return on equity of 19.23% and a net margin of 12.12%.ADT's revenue was up .9% compared to the same quarter last year. During the same period last year, the firm posted $0.21 earnings per share. ADT has set its FY 2026 guidance at 0.890-0.890 EPS. As a group, research analysts anticipate that ADT Inc. will post 0.87 earnings per share for the current year.

ADT Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, July 7th. Stockholders of record on Thursday, June 11th will be paid a $0.055 dividend. This represents a $0.22 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date is Thursday, June 11th. ADT's dividend payout ratio (DPR) is presently 31.43%.

Insider Transactions at ADT

In other news, EVP Fawad Ahmad acquired 7,500 shares of ADT stock in a transaction that occurred on Tuesday, May 12th. The shares were acquired at an average price of $6.75 per share, for a total transaction of $50,625.00. Following the transaction, the executive vice president directly owned 302,334 shares of the company's stock, valued at approximately $2,040,754.50. The trade was a 2.54% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Daniel Joseph Houston purchased 36,450 shares of the business's stock in a transaction dated Friday, May 8th. The shares were purchased at an average cost of $6.87 per share, for a total transaction of $250,411.50. Following the completion of the purchase, the director directly owned 74,812 shares of the company's stock, valued at approximately $513,958.44. This represents a 95.02% increase in their position. The SEC filing for this purchase provides additional information. In the last 90 days, insiders purchased 54,855 shares of company stock worth $376,172. Insiders own 3.00% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Los Angeles Capital Management LLC acquired a new stake in shares of ADT in the 4th quarter valued at about $28,000. IFP Advisors Inc boosted its holdings in ADT by 1,759.1% in the third quarter. IFP Advisors Inc now owns 3,997 shares of the security and automation business's stock worth $35,000 after acquiring an additional 3,782 shares in the last quarter. Osaic Holdings Inc. boosted its holdings in ADT by 39.9% in the second quarter. Osaic Holdings Inc. now owns 4,351 shares of the security and automation business's stock worth $37,000 after acquiring an additional 1,240 shares in the last quarter. PNC Financial Services Group Inc. grew its stake in ADT by 151.4% in the first quarter. PNC Financial Services Group Inc. now owns 4,957 shares of the security and automation business's stock valued at $33,000 after acquiring an additional 2,985 shares during the period. Finally, Fairscale Capital LLC bought a new stake in shares of ADT during the fourth quarter valued at approximately $41,000. 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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