ADT (NYSE:ADT) Raised to Equal Weight at Barclays

Key Points

• Barclays upgraded ADT from Underweight to Equal Weight and set a $10 price target, implying just 0.96% upside from the prior close.
• ADT beat quarterly estimates, reporting earnings of $0.24 per share versus $0.23 expected and revenue of $1.35 billion, up 3.9% year over year.
• The article notes a proposed $10-per-share cash acquisition, with closing expected in Q1 2027; shares near that offer price may have limited upside, while the deal remains subject to closing risk.

ADT (NYSE:ADT - Get Free Report) was upgraded by equities researchers at Barclays from an "underweight" rating to an "equal weight" rating in a research note issued to investors on Wednesday, MarketBeat Ratings reports. The firm currently has a $10.00 target price on the security and automation business' stock. Barclays's price objective indicates a potential upside of 0.96% from the stock's previous close.

ADT has been the topic of several other research reports. Morgan Stanley decreased their price objective on ADT from $7.75 to $7.25 and set an "equal weight" rating on the stock in a report on Tuesday, October 13th. Weiss Ratings upgraded ADT from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, October 29th. Finally, BTIG Research initiated coverage on ADT in a research note on Monday, August 17th. They issued a "neutral" rating for the company. Two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, ADT presently has an average rating of "Hold" and a consensus target price of $8.73.

ADT Stock Performance

ADT stock traded up $0.06 on Wednesday, reaching $9.90. 15,954,277 shares of the stock were exchanged, compared to its average volume of 10,742,127. The company has a current ratio of 0.69, a quick ratio of 0.52 and a debt-to-equity ratio of 2.14. ADT has a twelve month low of $6.03 and a twelve month high of $9.99. The firm has a fifty day moving average price of $7.08 and a two-hundred day moving average price of $7.11. The stock has a market cap of $7.24 billion, a PE ratio of 13.95 and a beta of 0.95.

ADT (NYSE:ADT - Get Free Report) last announced its earnings results on Tuesday, November 3rd. The security and automation business reported $0.24 earnings per share for the quarter, beating the consensus estimate of $0.23 by $0.01. The firm had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.32 billion. ADT had a return on equity of 18.99% and a net margin of 11.85%. The firm's revenue for the quarter was up 3.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.23 EPS. Sell-side analysts anticipate that ADT will post 0.90 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ADT. Maia Wealth LLC raised its stake in shares of ADT by 23.9% in the 3rd quarter. Maia Wealth LLC now owns 15,302 shares of the security and automation business's stock valued at $93,000 after purchasing an additional 2,951 shares during the period. PNC Financial Services Group Inc. lifted its holdings in shares of 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 purchasing an additional 2,985 shares in the last quarter. Williams & Novak Wealth Management LLC boosted its position in shares of ADT by 23.0% during the third quarter. Williams & Novak Wealth Management LLC now owns 17,878 shares of the security and automation business's stock worth $109,000 after buying an additional 3,345 shares during the period. Apollon Wealth Management LLC boosted its position in shares of ADT by 36.7% during the third quarter. Apollon Wealth Management LLC now owns 14,302 shares of the security and automation business's stock worth $87,000 after buying an additional 3,840 shares during the period. Finally, Corient Private Wealth LP boosted its position in shares of ADT by 3.6% during the second quarter. Corient Private Wealth LP now owns 114,441 shares of the security and automation business's stock worth $746,000 after buying an additional 4,004 shares during the period. Institutional investors own 87.22% of the company's stock.

Trending Headlines about ADT

Here are the key news stories impacting ADT this week:

• Positive Sentiment: Thrive Holdings will acquire ADT for $10 per share in cash, valuing the deal at about $15.3 billion. ADT expects the transaction to close in the first quarter of 2027. The offer provides a clear near-term valuation reference and is the main catalyst for the shares. Article: ADT to Be Acquired by Thrive Holdings in $15.3B Take-Private Deal
• Positive Sentiment: ADT reported third-quarter revenue of about $1.35 billion, up 4% year over year, and adjusted EPS of $0.24, slightly above the $0.23 consensus. The company also highlighted strong cash generation: year-to-date adjusted free cash flow rose 46%, while it returned $748 million to shareholders through repurchases and dividends. Article: ADT Reports Third Quarter 2026 Results
• Neutral Sentiment: With shares near the $10-per-share offer price, potential upside from the deal may be limited unless the acquisition terms change. Investors also face the risk that the transaction does not close as expected; the planned Q1 2027 completion leaves time for that uncertainty to affect the stock.

ADT Company Profile

ADT Inc is a security and smart-home services company that provides monitored protection and automation solutions for residential and commercial customers. Its offerings include professionally installed security systems, 24-hour alarm monitoring, video surveillance, fire and life-safety systems, access control, home automation and related emergency response services.

The company serves customers primarily in the United States, offering solutions designed to help protect homes, businesses and other facilities from burglary, fire and other risks.

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