ADT Inc. $ADT Stake Trimmed by Ariel Investments LLC

Key Points

• Ariel Investments LLC has reduced its holdings in ADT Inc. by 5.3%, selling over 1.5 million shares, now owning 27 million shares which accounts for 2.6% of its total portfolio.
• ADT recently reported earnings per share of $0.23 for the last quarter, exceeding estimates by $0.04, with revenue of $1.29 billion, a 6.8% increase from the previous year.
• The company declares a quarterly dividend of $0.055 to be paid on October 2, 2023, representing an annual yield of 2.6% and a payout ratio of 33.33%.

Ariel Investments LLC reduced its stake in ADT Inc. (NYSE:ADT - Free Report) by 5.3% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 27,057,295 shares of the security and automation business's stock after selling 1,522,841 shares during the period. ADT accounts for 2.6% of Ariel Investments LLC's holdings, making the stock its 8th biggest holding. Ariel Investments LLC owned 3.23% of ADT worth $220,246,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Versant Capital Management Inc bought a new stake in ADT in the first quarter valued at $35,000. True Wealth Design LLC acquired a new position in shares of ADT during the fourth quarter valued at about $36,000. AlphaQuest LLC grew its holdings in shares of ADT by 80.9% during the first quarter. AlphaQuest LLC now owns 5,301 shares of the security and automation business's stock valued at $43,000 after buying an additional 2,370 shares during the last quarter. Northwest Wealth Management LLC acquired a new position in shares of ADT during the first quarter valued at about $87,000. Finally, Focus Partners Advisor Solutions LLC acquired a new position in shares of ADT during the fourth quarter valued at about $88,000. 87.22% of the stock is owned by institutional investors.

ADT Stock Down 1.5%

ADT stock traded down $0.14 during midday trading on Friday, hitting $8.69. 19,526,477 shares of the stock were exchanged, compared to its average volume of 9,062,333. ADT Inc. has a 52-week low of $6.68 and a 52-week high of $8.89. The stock has a market capitalization of $7.22 billion, a price-to-earnings ratio of 13.16 and a beta of 1.13. The business's 50-day moving average price is $8.54 and its 200-day moving average price is $8.21. 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 results on Thursday, July 24th. The security and automation business reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.19 by $0.04. The business had revenue of $1.29 billion for the quarter, compared to analysts' expectations of $1.28 billion. ADT had a net margin of 12.30% and a return on equity of 18.58%. The firm's revenue for the quarter was up 6.8% compared to the same quarter last year. During the same period in the previous year, the company earned $0.17 earnings per share. ADT has set its FY 2025 guidance at 0.810-0.890 EPS. On average, research analysts expect that ADT Inc. will post 0.7 EPS for the current fiscal year.

ADT Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 2nd. Shareholders of record on Thursday, September 11th will be paid a $0.055 dividend. This represents a $0.22 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date is Thursday, September 11th. ADT's payout ratio is presently 33.33%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on ADT. Wall Street Zen cut shares of ADT from a "strong-buy" rating to a "buy" rating in a report on Sunday. Morgan Stanley lifted their price objective on shares of ADT from $9.00 to $9.50 and gave the company an "equal weight" rating in a report on Monday, July 28th. Zacks Research upgraded shares of ADT to a "strong-buy" rating in a report on Tuesday, August 12th. Finally, Citigroup lifted their price objective on shares of ADT from $9.00 to $10.00 and gave the company a "buy" rating in a report on Tuesday, August 26th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $9.34.

Insiders Place Their Bets

In other ADT news, major shareholder Apollo Management Holdings Gp, sold 71,000,000 shares of the business's stock in a transaction dated Monday, July 28th. The shares were sold at an average price of $8.31, for a total value of $590,010,000.00. Following the transaction, the insider directly owned 112,650,366 shares in the company, valued at $936,124,541.46. The trade was a 38.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 2.70% of the stock is currently owned by insiders.

About ADT

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.