American Century Companies Inc. Raises Stake in ADT Inc. $ADT

Key Points

• American Century Companies Inc. significantly increased its stake in ADT Inc. by 259.5% in the first quarter, owning 613,889 shares valued at approximately $4.99 million.
• Several hedge funds, including Wells Fargo and Tower Research Capital, have also expanded their positions in ADT during the fourth quarter, demonstrating strong institutional interest with 87.22% of the stock held by institutional investors.
• ADT announced a quarterly dividend of $0.055 per share, representing an annual yield of 2.5%, reflecting the company's ongoing financial stability and commitment to returning value to shareholders.

American Century Companies Inc. raised its holdings in shares of ADT Inc. (NYSE:ADT - Free Report) by 259.5% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 613,889 shares of the security and automation business's stock after acquiring an additional 443,121 shares during the quarter. American Century Companies Inc. owned about 0.07% of ADT worth $4,997,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors have also recently modified their holdings of the stock. Wells Fargo & Company MN increased its holdings in shares of ADT by 6.3% in the fourth quarter. Wells Fargo & Company MN now owns 35,827 shares of the security and automation business's stock worth $248,000 after purchasing an additional 2,113 shares during the period. Envestnet Asset Management Inc. increased its stake in ADT by 15.9% in the 4th quarter. Envestnet Asset Management Inc. now owns 24,540 shares of the security and automation business's stock worth $170,000 after purchasing an additional 3,366 shares during the period. Raymond James Financial Inc. purchased a new position in shares of ADT in the fourth quarter worth $1,153,000. Mariner LLC increased its position in shares of ADT by 10.9% in the fourth quarter. Mariner LLC now owns 39,666 shares of the security and automation business's stock valued at $274,000 after acquiring an additional 3,904 shares during the period. Finally, Tower Research Capital LLC TRC raised its position in ADT by 80.4% during the 4th quarter. Tower Research Capital LLC TRC now owns 41,841 shares of the security and automation business's stock valued at $289,000 after purchasing an additional 18,648 shares during the last quarter. 87.22% of the stock is currently owned by institutional investors.

ADT Price Performance

NYSE ADT traded up $0.02 during trading on Wednesday, hitting $8.61. 5,056,547 shares of the stock traded hands, compared to its average volume of 14,640,440. The firm has a 50-day simple moving average of $8.52 and a 200-day simple moving average of $8.19. ADT Inc. has a 12-month low of $6.68 and a 12-month high of $8.86. The company has a market capitalization of $7.15 billion, a P/E ratio of 13.04 and a beta of 1.13. The company has a quick ratio of 0.37, a current ratio of 0.46 and a debt-to-equity ratio of 1.84.

ADT (NYSE:ADT - Get Free Report) last released its quarterly earnings data on Thursday, July 24th. The security and automation business reported $0.23 EPS for the quarter, beating the consensus estimate of $0.19 by $0.04. The business had revenue of $1.29 billion during the quarter, compared to analyst estimates of $1.28 billion. ADT had a net margin of 12.30% and a return on equity of 18.58%. ADT's quarterly revenue was up 6.8% compared to the same quarter last year. During the same quarter last year, the business earned $0.17 earnings per share. ADT has set its FY 2025 guidance at 0.810-0.890 EPS. As a group, analysts predict that ADT Inc. will post 0.7 EPS for the current year.

ADT Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 2nd. Investors of record on Thursday, September 11th will be issued a dividend of $0.055 per share. This represents a $0.22 annualized dividend and a yield of 2.6%. The ex-dividend date is Thursday, September 11th. ADT's dividend payout ratio is presently 33.33%.

Insider Activity

In related news, major shareholder Apollo Management Holdings Gp, sold 71,000,000 shares of the company's stock in a transaction dated Monday, July 28th. The shares were sold at an average price of $8.31, for a total transaction of $590,010,000.00. Following the transaction, the insider directly owned 112,650,366 shares in the company, valued at approximately $936,124,541.46. This represents a 38.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 2.70% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the stock. Morgan Stanley raised their target price on shares of ADT from $9.00 to $9.50 and gave the stock an "equal weight" rating in a research report on Monday, July 28th. Citigroup upped their target price on shares of ADT from $9.00 to $10.00 and gave the stock a "buy" rating in a research note on Tuesday, August 26th. Wall Street Zen raised ADT from a "buy" rating to a "strong-buy" rating in a research report on Saturday. Finally, Zacks Research raised shares of ADT to a "strong-buy" rating in a research report on Tuesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $9.34.

ADT Company Profile

ADT Inc provides security, interactive, and smart home solutions to residential and small business customers in the United States. It operates through two segments, Consumer and Small Business, and Solar. The company provides burglar and life safety alarms, smart security cameras, smart home automation systems, and video surveillance systems.