ADT Inc. $ADT Shares Sold by Renaissance Technologies LLC

Key Points

• Renaissance Technologies cut its ADT position by 54% in the first quarter, selling 1,585,800 shares and retaining 1,351,406 shares valued at approximately $8.9 million.
• ADT exceeded quarterly earnings and revenue expectations, reporting adjusted EPS of $0.23 and revenue of $1.31 billion. Management raised full-year revenue guidance to about $5.2 billion while maintaining adjusted EPS guidance near $0.91.
• Despite stronger cash flow and substantial shareholder returns, ADT faces challenges from a 1% decline in recurring monthly revenue and higher customer attrition. Analysts maintain a consensus “Hold” rating with an average price target of $8.23.

Renaissance Technologies LLC trimmed its position in shares of ADT Inc. (NYSE:ADT - Free Report) by 54.0% in the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 1,351,406 shares of the security and automation business's stock after selling 1,585,800 shares during the quarter. Renaissance Technologies LLC owned approximately 0.17% of ADT worth $8,879,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also recently modified their holdings of ADT. Los Angeles Capital Management LLC purchased a new position in ADT during the 4th quarter valued at about $28,000. IFP Advisors Inc boosted its holdings in ADT by 1,759.1% in the third quarter. IFP Advisors Inc now owns 3,997 shares of the security and automation business's stock valued at $35,000 after purchasing an additional 3,782 shares in the last quarter. Osaic Holdings Inc. grew its position in shares of ADT by 39.9% in the 2nd quarter. Osaic Holdings Inc. now owns 4,351 shares of the security and automation business's stock valued at $37,000 after buying an additional 1,240 shares during the last quarter. PNC Financial Services Group Inc. increased its position in shares of ADT by 151.4% during the first quarter. PNC Financial Services Group Inc. now owns 4,957 shares of the security and automation business's stock worth $33,000 after purchasing an additional 2,985 shares in the last quarter. Finally, Fairscale Capital LLC acquired a new position in shares of ADT in the 4th quarter valued at $41,000. 87.22% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting ADT

Here are the key news stories impacting ADT this week:

• Positive Sentiment: Quarterly results exceeded expectations. ADT reported adjusted earnings of $0.23 per share versus the $0.22 consensus estimate, while revenue rose approximately 2% year over year to $1.312 billion, above analysts’ expectations. ADT Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Cash flow improved sharply. Operating cash flow increased 18% to $666 million, and adjusted free cash flow including interest-rate swaps jumped 48% to $406 million. ADT now expects adjusted free cash flow to grow approximately 30% in 2026. ADT Reports Second Quarter 2026 Results
• Positive Sentiment: Management raised its full-year outlook. ADT maintained adjusted EPS guidance at approximately $0.91 and lifted revenue guidance to about $5.2 billion, above the roughly $5.1 billion analyst consensus. The company also projects approximately 2% growth in revenue and adjusted EPS.
• Positive Sentiment: Shareholder returns remained substantial. ADT returned $684 million through repurchases and dividends during the first half of 2026, including $478 million of second-quarter buybacks. It declared a quarterly dividend of $0.055 per share, payable October 1 to shareholders of record September 10.
• Positive Sentiment: New growth initiatives—including the self-installed ADT Blu offering, expansion of ADT+, AI-powered customer service and Wi-Fi-based presence sensing—could broaden customer acquisition and improve operating efficiency.
• Neutral Sentiment: Core recurring monthly revenue declined 1% to $360 million, while gross customer attrition rose to 13.1% from 12.8%, highlighting continued competitive and retention challenges.
• Negative Sentiment: GAAP income from continuing operations fell 8% to $155 million, and adjusted income declined 6% to $180 million as selling, general and administrative expenses increased. A consumer report alleging an unauthorized five-year contract extension also presents a potential customer-service and reputational risk. Customer Contract Dispute

Analyst Upgrades and Downgrades

ADT has been the subject of a number of analyst reports. Weiss Ratings restated a "hold (c)" rating on shares of ADT in a research report on Wednesday, July 15th. UBS Group set a $7.50 price target on shares of ADT in a report on Friday, May 1st. Finally, Morgan Stanley raised their price target on ADT from $7.50 to $7.75 and gave the stock an "equal weight" rating in a research note on Friday. Two equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $8.23.

ADT Stock Performance

ADT stock opened at $7.64 on Monday. ADT Inc. has a one year low of $6.24 and a one year high of $8.94. The firm has a market capitalization of $5.61 billion, a PE ratio of 10.77 and a beta of 1.00. The company has a debt-to-equity ratio of 2.14, a quick ratio of 0.52 and a current ratio of 0.69. The stock's 50 day moving average price is $6.81 and its 200 day moving average price is $7.10.

ADT (NYSE:ADT - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The security and automation business reported $0.23 earnings per share for the quarter, beating 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 company had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.29 billion. During the same period in the prior year, the company posted $0.23 EPS. The firm's revenue for the quarter was up 1.9% on a year-over-year basis. ADT has set its FY 2026 guidance at 0.910-0.910 EPS. As a group, sell-side analysts expect that ADT Inc. will post 0.87 EPS for the current fiscal year.

ADT Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be issued a $0.055 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $0.22 annualized dividend and a yield of 2.9%. ADT's dividend payout ratio is currently 30.99%.

Insider Transactions at ADT

In other news, EVP Kimberly Miller purchased 3,625 shares of the firm's stock in a transaction that occurred on Thursday, May 14th. The stock was acquired at an average cost of $6.91 per share, for a total transaction of $25,048.75. Following the completion of the purchase, the executive vice president owned 55,984 shares of the company's stock, valued at approximately $386,849.44. This trade represents a 6.92% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Daniel Joseph Houston bought 36,450 shares of the firm's stock in a transaction dated Friday, May 8th. The stock was purchased at an average price of $6.87 per share, with a total value of $250,411.50. Following the transaction, the director owned 74,812 shares in the company, valued at approximately $513,958.44. This represents a 95.02% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have acquired a total of 54,855 shares of company stock valued at $376,172 over the last ninety days. 3.00% of the stock is currently owned by company insiders.

About ADT

ADT Inc is a leading provider of security and automation solutions for residential and commercial customers. The company offers a comprehensive suite of products and services, including intrusion detection systems, video surveillance, fire and carbon monoxide monitoring, and integrated smart home automation platforms. Through professional installation, continuous monitoring, and a network of 24/7 monitoring centers, ADT helps customers protect their properties, assets and loved ones.

Founded in 1874 as the American District Telegraph Company, ADT has evolved from one of the first telegraph-based alarm services into a modern security technology enterprise.

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