ADT (NYSE:ADT) Stock Crosses Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• ADT shares rose 2.4% and briefly traded above their 200-day moving average of $7.04, reaching $7.48 before last trading at $7.395.
• Analyst sentiment remains cautious: ADT has an overall “Hold” rating, with two Buy, four Hold, and one Sell recommendation, and an average price target of $8.23.
• ADT exceeded quarterly expectations with $0.23 EPS and $1.31 billion in revenue, while maintaining a quarterly dividend of $0.055 per share, equivalent to a 3.0% annualized yield.

ADT Inc. (NYSE:ADT - Get Free Report) shares passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $7.04 and traded as high as $7.48. ADT shares last traded at $7.3950, with a volume of 7,392,226 shares changing hands.

Analyst Ratings Changes

Several research firms have recently issued reports on ADT. BTIG Research started coverage on shares of ADT in a research note on Monday. They set a "neutral" rating on the stock. UBS Group set a $7.50 price target on ADT in a research note on Friday, May 1st. Morgan Stanley upped their price target on ADT from $7.50 to $7.75 and gave the stock an "equal weight" rating in a report on Friday, July 31st. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of ADT in a report on Wednesday, July 15th. Two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, ADT currently has an average rating of "Hold" and an average target price of $8.23.

ADT Stock Up 2.4%

The stock has a market cap of $5.40 billion, a price-to-earnings ratio of 10.42 and a beta of 1.00. The business's 50 day moving average is $7.00 and its 200-day moving average is $7.04. The company has a debt-to-equity ratio of 2.14, a quick ratio of 0.52 and a current ratio of 0.69.

ADT (NYSE:ADT - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The security and automation business reported $0.23 earnings per share for the quarter, topping analysts' consensus estimates of $0.22 by $0.01. The company had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.29 billion. ADT had a net margin of 11.85% and a return on equity of 18.99%. The firm's revenue for the quarter was up 1.9% on a year-over-year basis. During the same period in the prior year, the business posted $0.23 earnings per share. ADT has set its FY 2026 guidance at 0.910-0.910 EPS. On average, sell-side analysts predict that ADT Inc. will post 0.9 EPS for the current fiscal year.

ADT Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be given a dividend of $0.055 per share. This represents a $0.22 annualized dividend and a dividend yield of 3.0%. The ex-dividend date is Thursday, September 10th. ADT's dividend payout ratio is 30.99%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Osaic Holdings Inc. increased its stake in ADT by 39.9% during the 2nd quarter. Osaic Holdings Inc. now owns 4,351 shares of the security and automation business's stock worth $37,000 after buying an additional 1,240 shares in the last quarter. Legal & General Group Plc lifted its position in shares of ADT by 0.3% in the fourth quarter. Legal & General Group Plc now owns 501,861 shares of the security and automation business's stock valued at $4,050,000 after acquiring an additional 1,445 shares in the last quarter. F m Investments LLC lifted its position in shares of ADT by 0.7% in the third quarter. F m Investments LLC now owns 239,027 shares of the security and automation business's stock valued at $2,082,000 after acquiring an additional 1,602 shares in the last quarter. Amundi boosted its stake in shares of ADT by 0.5% in the third quarter. Amundi now owns 356,404 shares of the security and automation business's stock worth $3,104,000 after acquiring an additional 1,899 shares during the last quarter. Finally, Neuberger Berman Group LLC boosted its stake in shares of ADT by 2.4% in the fourth quarter. Neuberger Berman Group LLC now owns 106,428 shares of the security and automation business's stock worth $859,000 after acquiring an additional 2,446 shares during the last quarter. 87.22% of the stock is owned by hedge funds and other institutional investors.

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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