Arrowstreet Capital Limited Partnership Sells 11,037,891 Shares of ADT Inc. $ADT

Key Points

• Arrowstreet Capital cut its ADT stake by 80% in the first quarter, selling 11.04 million shares and retaining 2.75 million shares worth approximately $18.1 million. Institutional investors collectively own 87.22% of ADT.
• ADT exceeded second-quarter expectations with adjusted EPS of $0.23 and revenue of about $1.31 billion, while operating cash flow and adjusted free cash flow increased substantially. The company also raised its full-year outlook, projecting roughly 30% adjusted free-cash-flow growth in 2026.
• Results included mixed operating signals: recurring monthly revenue fell 1% and customer attrition increased to 13.1%, even as ADT returned $684 million to shareholders through buybacks and dividends. Analysts maintain a consensus “Hold” rating with an average price target of $8.08.

Arrowstreet Capital Limited Partnership trimmed its holdings in ADT Inc. (NYSE:ADT - Free Report) by 80.0% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 2,750,977 shares of the security and automation business's stock after selling 11,037,891 shares during the quarter. Arrowstreet Capital Limited Partnership owned about 0.35% of ADT worth $18,074,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds also recently made changes to their positions in ADT. Los Angeles Capital Management LLC bought a new position in ADT during the fourth quarter worth $28,000. PNC Financial Services Group Inc. increased its stake in ADT by 151.4% in the first quarter. PNC Financial Services Group Inc. now owns 4,957 shares of the security and automation business's stock valued at $33,000 after purchasing an additional 2,985 shares in the last quarter. IFP Advisors Inc raised its holdings in shares of ADT by 1,759.1% during 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 during the period. Osaic Holdings Inc. raised its holdings in shares of ADT by 39.9% during the second quarter. Osaic Holdings Inc. now owns 4,351 shares of the security and automation business's stock valued at $37,000 after purchasing an additional 1,240 shares during the period. Finally, Fairscale Capital LLC bought a new position in shares of ADT during the 4th quarter worth about $41,000. Institutional investors own 87.22% of the company's stock.

ADT News Summary

Here are the key news stories impacting ADT this week:

• Positive Sentiment: Q2 results exceeded expectations. ADT reported adjusted EPS of $0.23 versus the $0.22 consensus estimate and revenue of $1.312 billion, ahead of forecasts near $1.30 billion. Revenue increased 2% year over year, primarily because of stronger security installation and product sales. ADT Beats Q2 CY2026 Sales Expectations
• Positive Sentiment: Cash flow and shareholder returns were major catalysts. Operating cash flow rose 18% to $666 million, while adjusted free cash flow including interest-rate swaps jumped 48% to $406 million. ADT returned $684 million through buybacks and dividends during the first half, including $478 million of share repurchases in the quarter. ADT Reports Second Quarter 2026 Results
• Positive Sentiment: ADT raised its full-year outlook. Management now expects approximately 30% growth in 2026 adjusted free cash flow, about 2% revenue growth and roughly 2% adjusted EPS growth. The company is also scaling the ADT+ platform and launching ADT Blu, a self-installed product intended to expand its customer base and distribution channels. ADT Free Cash Flow Outlook and ADT Blu Update
• Neutral Sentiment: The board declared a quarterly dividend of $0.055 per share, payable October 1 to shareholders of record September 10. The dividend supports ADT’s income appeal, but the payout was not described as an increase.
• Negative Sentiment: Underlying profitability and customer trends were mixed. GAAP income from continuing operations fell 8%, adjusted income declined 6%, recurring monthly revenue decreased 1% to $360 million, and gross customer attrition rose to 13.1% from 12.8%. A consumer report alleging a disputed five-year contract extension and an allegedly unauthorized signature could add reputational and customer-retention pressure. Consumer Dispute Involving ADT Security Contract

ADT Trading Up 1.7%

Shares of ADT stock opened at $7.53 on Friday. The company has a quick ratio of 0.67, a current ratio of 0.84 and a debt-to-equity ratio of 1.94. The firm has a market cap of $5.52 billion, a P/E ratio of 10.76 and a beta of 1.01. The company has a 50 day moving average of $6.79 and a 200-day moving average of $7.10. ADT Inc. has a 12-month low of $6.24 and a 12-month high of $8.94.

ADT (NYSE:ADT - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The security and automation business reported $0.23 earnings per share for the quarter, beating the consensus estimate of $0.22 by $0.01. ADT had a return on equity of 19.23% and a net margin of 12.12%.The business had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.29 billion. During the same period in the prior year, the company earned $0.23 earnings per share. ADT's 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. Sell-side analysts anticipate that ADT Inc. will post 0.87 earnings per share for the current year.

ADT Dividend Announcement

The company also recently disclosed 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 (DPR) is 31.43%.

Insider Transactions at ADT

In other ADT news, Director Daniel Joseph Houston bought 36,450 shares of the business's stock in a transaction on Friday, May 8th. The stock was purchased at an average price of $6.87 per share, for a total transaction of $250,411.50. Following the completion of the transaction, the director directly owned 74,812 shares of the company's stock, valued at $513,958.44. This trade represents a 95.02% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Omar Khan purchased 7,280 shares of the company's stock in a transaction that occurred on Monday, May 11th. The shares were acquired at an average price of $6.88 per share, for a total transaction of $50,086.40. Following the completion of the purchase, the executive vice president directly owned 7,280 shares in the company, valued at $50,086.40. This represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last quarter, insiders purchased 54,855 shares of company stock worth $376,172. Insiders own 3.00% of the company's stock.

Wall Street Analysts Forecast Growth

ADT has been the topic of a number of research reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of ADT in a research report on Wednesday, July 15th. UBS Group set a $7.50 price objective on ADT in a research note on Friday, May 1st. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $8.08.

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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