ADT (NYSE:ADT) Shares Gap Down - Here's What Happened

Key Points

• Shares gapped down: ADT opened at $7.19 after a $7.55 close and was last at $7.165 with heavy volume (~11.2M shares), reflecting notable intraday weakness.
• Analyst stance is mixed but cautious: the consensus rating is Hold with a $8.08 price target, stemming from 2 Buy, 3 Hold and 1 Sell ratings and individual targets ranging roughly $7.00–$10.40.
• Recent fundamentals and payouts: ADT beat Q results with $0.23 EPS (vs. $0.21 est.) and $2.56B revenue (+0.9% YoY), set FY2026 guidance of $0.89 EPS, declared a $0.055 quarterly dividend (3.1% yield), and an EVP purchased 7,300 shares.

ADT Inc. (NYSE:ADT - Get Free Report)'s stock price gapped down before the market opened on Monday . The stock had previously closed at $7.55, but opened at $7.19. ADT shares last traded at $7.1650, with a volume of 11,197,349 shares traded.

Wall Street Analyst Weigh In

ADT has been the topic of a number of recent analyst reports. UBS Group set a $7.50 price target on shares of ADT in a research note on Friday. Citigroup cut their price target on shares of ADT from $10.00 to $8.50 and set a "buy" rating on the stock in a research note on Wednesday, March 4th. The Goldman Sachs Group reissued a "buy" rating and issued a $10.40 target price on shares of ADT in a research note on Monday, March 2nd. Zacks Research raised shares of ADT from a "strong sell" rating to a "hold" rating in a research note on Monday, February 16th. Finally, Barclays reissued an "underweight" rating and issued a $7.00 target price on shares of ADT in a research note on Friday, March 6th. Two investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $8.08.

ADT Price Performance

The stock has a market cap of $5.85 billion, a PE ratio of 10.18 and a beta of 1.06. The company has a current ratio of 0.84, a quick ratio of 0.67 and a debt-to-equity ratio of 1.94. The company's 50 day moving average is $6.94 and its 200-day moving average is $7.73.

ADT (NYSE:ADT - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The security and automation business reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.21 by $0.02. ADT had a net margin of 12.12% and a return on equity of 19.23%. The firm had revenue of $2.56 billion for the quarter, compared to the consensus estimate of $1.27 billion. During the same quarter in the previous year, the firm posted $0.21 EPS. The firm's quarterly revenue was up .9% on a year-over-year basis. ADT has set its FY 2026 guidance at 0.890-0.890 EPS. As a group, sell-side analysts predict that ADT Inc. will post 0.84 earnings per share for the current year.

ADT Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, July 7th. Investors of record on Thursday, June 11th will be paid a dividend of $0.055 per share. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $0.22 annualized dividend and a yield of 3.1%. ADT's payout ratio is 33.33%.

Insider Transactions at ADT

In other news, EVP David A. Scott purchased 7,300 shares of the company's stock in a transaction that occurred on Thursday, March 5th. The shares were purchased at an average price of $6.72 per share, with a total value of $49,056.00. Following the purchase, the executive vice president directly owned 7,300 shares of the company's stock, valued at approximately $49,056. This represents a ∞ increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 3.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. BNP PARIBAS ASSET MANAGEMENT Holding S.A. increased its position in shares of ADT by 20.6% in the 3rd quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. now owns 7,099 shares of the security and automation business's stock worth $62,000 after purchasing an additional 1,213 shares during the last quarter. Osaic Holdings Inc. raised its stake in ADT by 39.9% during 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 in the last quarter. WPG Advisers LLC lifted its holdings in ADT by 54.3% during the 3rd quarter. WPG Advisers LLC now owns 4,091 shares of the security and automation business's stock worth $36,000 after buying an additional 1,440 shares during the last quarter. Legal & General Group Plc lifted its holdings in ADT by 0.3% during the 4th quarter. Legal & General Group Plc now owns 501,861 shares of the security and automation business's stock worth $4,050,000 after buying an additional 1,445 shares during the last quarter. Finally, F m Investments LLC grew its position in shares of ADT by 0.7% in the 3rd quarter. F m Investments LLC now owns 239,027 shares of the security and automation business's stock worth $2,082,000 after acquiring an additional 1,602 shares in the last quarter. 87.22% of the stock is owned by institutional investors and hedge funds.

About ADT

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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