ADT Inc. (NYSE:ADT) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Analysts maintain a “Hold” consensus on ADT, with four hold, two buy, and one sell rating among seven covering firms. The average 12-month price target is $8.23.
• ADT’s latest quarterly results modestly exceeded expectations, with adjusted EPS of $0.23 versus the $0.22 consensus and revenue of $1.31 billion, up 1.9% year over year.
• ADT declared a quarterly dividend of $0.055 per share, equivalent to an annualized $0.22 payout and a 3.2% dividend yield; institutional investors own 87.22% of the company.

ADT Inc. (NYSE:ADT - Get Free Report) has received an average recommendation of "Hold" from the seven ratings firms that are covering the firm, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, four have given a hold rating and two have assigned a buy rating to the company. The average twelve-month price target among brokerages that have issued ratings on the stock in the last year is $8.23.

Several brokerages have recently weighed in on ADT. Weiss Ratings reiterated a "hold (c)" rating on shares of ADT in a research note on Wednesday, July 15th. Morgan Stanley boosted their price target on ADT from $7.50 to $7.75 and gave the company an "equal weight" rating in a research report on Friday, July 31st. Finally, BTIG Research began coverage on ADT in a research note on Monday, August 17th. They set a "neutral" rating for the company.

ADT Stock Performance

Shares of ADT stock opened at $6.88 on Friday. The firm's fifty day simple moving average is $7.28 and its 200-day simple moving average is $6.95. The stock has a market capitalization of $5.02 billion, a price-to-earnings ratio of 9.68 and a beta of 1.02. ADT has a 12 month low of $6.24 and a 12 month high of $8.89. The company has a debt-to-equity ratio of 2.14, a current ratio of 0.69 and a quick ratio of 0.52.

ADT (NYSE:ADT - Get Free Report) last issued its quarterly earnings results 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. ADT had a net margin of 11.85% and a return on equity of 18.99%. The firm had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.29 billion. During the same quarter in the prior year, the business earned $0.23 EPS. ADT's quarterly revenue was up 1.9% compared to the same quarter last year. ADT has set its FY 2026 guidance at 0.910-0.910 EPS. As a group, equities analysts forecast that ADT will post 0.9 earnings per share for the current year.

ADT Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be paid a dividend of $0.055 per share. This represents a $0.22 annualized dividend and a dividend yield of 3.2%. The ex-dividend date is Thursday, September 10th. ADT's dividend payout ratio is 30.99%.

Hedge Funds Weigh In On ADT

A number of hedge funds and other institutional investors have recently bought and sold shares of ADT. Geode Capital Management LLC boosted its holdings in shares of ADT by 5.6% in the fourth quarter. Geode Capital Management LLC now owns 10,906,341 shares of the security and automation business's stock valued at $88,030,000 after acquiring an additional 577,013 shares in the last quarter. Norges Bank purchased a new position in ADT during the fourth quarter worth about $192,996,000. Louisiana State Employees Retirement System acquired a new stake in ADT in the first quarter valued at about $1,480,000. Jupiter Asset Management Ltd. purchased a new stake in ADT in the 4th quarter valued at approximately $5,012,000. Finally, New York State Teachers Retirement System increased its position in ADT by 390.3% during the 1st quarter. New York State Teachers Retirement System now owns 231,123 shares of the security and automation business's stock worth $1,518,000 after purchasing an additional 183,985 shares during the period. 87.22% of the stock is currently owned by hedge funds and other institutional investors.

About ADT

ADT Inc NYSE: ADT is a provider of security, automation and smart-home solutions for residential and commercial customers. The company offers professionally installed and monitored alarm systems, video surveillance, fire and life-safety products, access-control solutions, and home-automation services.

For residential customers, ADT provides security systems that can integrate alarms, cameras, locks, lighting, thermostats and other connected devices. Its services generally include 24-hour professional monitoring, mobile-app controls, video monitoring and related support.

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