Charles Schwab Investment Management Inc. Sells 654,738 Shares of ADT Inc. $ADT

Key Points

• Charles Schwab Investment Management cut its ADT position by 14.5% in the fourth quarter, selling 654,738 shares and leaving it with 3.86 million shares valued at about $31.1 million.
• ADT’s stock received mixed analyst views, with a consensus rating of “Hold” and an average price target of $8.08; recent target cuts came from firms like Citigroup and Morgan Stanley, while Goldman Sachs maintained a Buy rating.
• The company reported solid quarterly results and returns cash to shareholders, beating EPS and revenue expectations in its latest earnings report and announcing a quarterly dividend of $0.055 per share, equal to a 3.2% yield.

Charles Schwab Investment Management Inc. decreased its stake in shares of ADT Inc. (NYSE:ADT - Free Report) by 14.5% in the 4th quarter, according to its most recent 13F filing with the SEC. The firm owned 3,855,124 shares of the security and automation business's stock after selling 654,738 shares during the period. Charles Schwab Investment Management Inc. owned 0.47% of ADT worth $31,111,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also modified their holdings of the stock. Police & Firemen s Retirement System of New Jersey boosted its holdings in shares of ADT by 1.3% during the 4th quarter. Police & Firemen s Retirement System of New Jersey now owns 217,163 shares of the security and automation business's stock worth $1,753,000 after buying an additional 2,737 shares during the period. State Street Corp boosted its holdings in ADT by 10.8% in the 4th quarter. State Street Corp now owns 11,741,554 shares of the security and automation business's stock valued at $95,353,000 after purchasing an additional 1,148,483 shares during the period. Victory Capital Management Inc. boosted its holdings in ADT by 4.5% in the 4th quarter. Victory Capital Management Inc. now owns 4,064,126 shares of the security and automation business's stock valued at $32,797,000 after purchasing an additional 176,739 shares during the period. Ieq Capital LLC boosted its holdings in ADT by 3.5% in the 4th quarter. Ieq Capital LLC now owns 3,749,491 shares of the security and automation business's stock valued at $30,258,000 after purchasing an additional 126,268 shares during the period. Finally, Boston Partners boosted its holdings in ADT by 12.8% in the 4th quarter. Boston Partners now owns 374,628 shares of the security and automation business's stock valued at $3,023,000 after purchasing an additional 42,520 shares during the period. Institutional investors own 87.22% of the company's stock.

Analysts Set New Price Targets

A number of research firms have issued reports on ADT. Barclays reissued an "underweight" rating and issued a $7.00 price objective on shares of ADT in a report on Friday, March 6th. Zacks Research raised shares of ADT from a "strong sell" rating to a "hold" rating in a report on Monday, February 16th. Citigroup cut their price objective on shares of ADT from $10.00 to $8.50 and set a "buy" rating for the company in a report on Wednesday, March 4th. The Goldman Sachs Group reissued a "buy" rating and issued a $10.40 price objective on shares of ADT in a report on Monday, March 2nd. Finally, Morgan Stanley cut their price objective on shares of ADT from $9.00 to $7.00 and set an "equal weight" rating for the company in a report on Tuesday, March 3rd. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, ADT has a consensus rating of "Hold" and an average target price of $8.08.

ADT Price Performance

Shares of NYSE:ADT opened at $6.83 on Friday. The firm has a 50 day moving average of $6.81 and a 200-day moving average of $7.63. The stock has a market capitalization of $5.40 billion, a PE ratio of 9.75 and a beta of 1.06. The company has a current ratio of 0.84, a quick ratio of 0.67 and a debt-to-equity ratio of 1.94. ADT Inc. has a 12 month low of $6.25 and a 12 month high of $8.94.

ADT (NYSE:ADT - Get Free Report) last issued its earnings results on Thursday, April 30th. The security and automation business reported $0.23 EPS for the quarter, beating the consensus estimate of $0.21 by $0.02. The company had revenue of $2.56 billion during the quarter, compared to analysts' expectations of $1.27 billion. ADT had a net margin of 12.12% and a return on equity of 19.23%. The business's revenue for the quarter was up .9% compared to the same quarter last year. During the same period in the previous year, the company earned $0.21 EPS. ADT has set its FY 2026 guidance at 0.890-0.890 EPS. On average, equities research analysts predict that ADT Inc. will post 0.87 EPS for the current fiscal year.

ADT Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 7th. Stockholders of record on Thursday, June 11th will be given a $0.055 dividend. The ex-dividend date is Thursday, June 11th. This represents a $0.22 annualized dividend and a dividend yield of 3.2%. ADT's payout ratio is presently 31.43%.

Insider Activity

In other news, EVP Omar Khan bought 7,280 shares of the company's stock in a transaction dated Monday, May 11th. The stock was bought at an average cost of $6.88 per share, for a total transaction of $50,086.40. Following the transaction, the executive vice president owned 7,280 shares of the company's stock, valued at $50,086.40. This represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP David A. Scott bought 7,300 shares of the company's stock in a transaction dated Thursday, March 5th. The stock was purchased at an average price of $6.72 per share, with a total value of $49,056.00. Following the completion of the transaction, the executive vice president directly owned 7,300 shares in the company, valued at approximately $49,056. This represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased a total of 58,530 shares of company stock valued at $400,179 over the last quarter. 3.00% of the stock is owned by corporate 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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