Hsbc Holdings PLC Has $1.09 Million Stake in ADT Inc. $ADT

Key Points

• Hsbc Holdings PLC significantly increased its stake in ADT Inc. by 238.3%, owning 135,102 shares worth approximately $1.09 million by the end of the first quarter.
• ADT reported quarterly earnings of $0.23 per share, exceeding analyst expectations, with revenue rising 6.8% year-over-year to $1.29 billion.
• The company declared a quarterly dividend of $0.055, set to be paid on October 2nd, reflecting an annualized yield of 2.5%.

Hsbc Holdings PLC grew its position in ADT Inc. (NYSE:ADT - Free Report) by 238.3% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 135,102 shares of the security and automation business's stock after acquiring an additional 95,166 shares during the quarter. Hsbc Holdings PLC's holdings in ADT were worth $1,093,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of ADT. Versant Capital Management Inc acquired a new stake in shares of ADT during the first quarter worth $35,000. True Wealth Design LLC purchased a new stake in ADT during the 4th quarter worth about $36,000. Northwest Wealth Management LLC purchased a new stake in ADT during the 1st quarter worth about $87,000. Cresset Asset Management LLC purchased a new stake in ADT during the 1st quarter worth about $93,000. Finally, Earned Wealth Advisors LLC purchased a new stake in ADT in the 1st quarter valued at about $96,000. 87.22% of the stock is owned by institutional investors and hedge funds.

ADT Stock Performance

Shares of ADT stock traded up $0.02 during trading on Wednesday, reaching $8.61. The company had a trading volume of 5,513,070 shares, compared to its average volume of 14,644,013. The firm's 50 day simple moving average is $8.52 and its two-hundred day simple moving average is $8.19. The company has a debt-to-equity ratio of 1.84, a current ratio of 0.46 and a quick ratio of 0.37. ADT Inc. has a one year low of $6.68 and a one year high of $8.86. The company has a market capitalization of $7.15 billion, a PE ratio of 13.04 and a beta of 1.13.

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

ADT Dividend Announcement

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

Wall Street Analyst Weigh In

ADT has been the subject of a number of research reports. Wall Street Zen upgraded ADT from a "buy" rating to a "strong-buy" rating in a report on Saturday. Citigroup increased their target price on ADT from $9.00 to $10.00 and gave the company a "buy" rating in a research note on Tuesday, August 26th. Zacks Research upgraded ADT to a "strong-buy" rating in a research note on Tuesday, August 12th. Finally, Morgan Stanley upped their price target on ADT from $9.00 to $9.50 and gave the company an "equal weight" rating in a research report on Monday, July 28th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $9.34.

Insider Buying and Selling

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 stock was sold at an average price of $8.31, for a total value of $590,010,000.00. Following the completion of the sale, the insider owned 112,650,366 shares in the company, valued at approximately $936,124,541.46. This represents a 38.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Corporate insiders own 2.70% of the company's stock.

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.