Hennessy Advisors Inc. Purchases New Holdings in ADT Inc. $ADT

Key Points

• Hennessy Advisors Inc. has acquired a new stake in ADT Inc., purchasing 1,251,700 shares valued at approximately $10.6 million in the second quarter.
• Major shareholder Apollo Management Holdings sold 71 million shares of ADT for $590 million, reducing their ownership by 38.66%.
• ADT recently beat earnings estimates with $0.23 earnings per share for the last quarter and has set fiscal year 2025 guidance at 0.810-0.890 EPS.

Hennessy Advisors Inc. purchased a new stake in shares of ADT Inc. (NYSE:ADT - Free Report) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 1,251,700 shares of the security and automation business's stock, valued at approximately $10,602,000. Hennessy Advisors Inc. owned about 0.15% of ADT at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently modified their holdings of ADT. Millennium Management LLC increased its position in shares of ADT by 668.5% during the first quarter. Millennium Management LLC now owns 7,504,051 shares of the security and automation business's stock valued at $61,083,000 after acquiring an additional 6,527,539 shares during the last quarter. AQR Capital Management LLC increased its position in ADT by 86.6% in the first quarter. AQR Capital Management LLC now owns 13,119,098 shares of the security and automation business's stock worth $105,543,000 after buying an additional 6,089,671 shares during the last quarter. Vanguard Group Inc. increased its position in ADT by 11.6% in the first quarter. Vanguard Group Inc. now owns 49,715,950 shares of the security and automation business's stock worth $404,688,000 after buying an additional 5,160,835 shares during the last quarter. Dimensional Fund Advisors LP increased its position in ADT by 21.6% in the first quarter. Dimensional Fund Advisors LP now owns 26,077,931 shares of the security and automation business's stock worth $212,264,000 after buying an additional 4,624,120 shares during the last quarter. Finally, Cubist Systematic Strategies LLC purchased a new stake in ADT in the first quarter worth $31,573,000. 87.22% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of research firms have issued reports on ADT. Citigroup raised their target price on ADT from $9.00 to $10.00 and gave the stock a "buy" rating in a research report on Tuesday, August 26th. Wall Street Zen downgraded ADT from a "strong-buy" rating to a "buy" rating in a research report on Sunday, September 28th. Zacks Research downgraded ADT from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 22nd. Weiss Ratings reissued a "buy (b)" rating on shares of ADT in a research report on Saturday, September 27th. Finally, Morgan Stanley raised their target price on ADT from $9.00 to $9.50 and gave the stock an "equal weight" rating in a research report on Monday, July 28th. Three investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $9.34.

Insider Transactions at ADT

In related news, major shareholder Apollo Management Holdings Gp, sold 71,000,000 shares of ADT stock in a transaction on Monday, July 28th. The stock was sold at an average price of $8.31, for a total transaction of $590,010,000.00. Following the completion of the sale, the insider owned 112,650,366 shares of the company's stock, valued at approximately $936,124,541.46. This trade represents a 38.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 2.70% of the company's stock.

ADT Price Performance

Shares of NYSE ADT opened at $8.80 on Friday. The stock has a market cap of $7.31 billion, a PE ratio of 13.33 and a beta of 1.05. ADT Inc. has a fifty-two week low of $6.68 and a fifty-two week high of $8.94. The company has a debt-to-equity ratio of 1.84, a quick ratio of 0.37 and a current ratio of 0.46. The stock has a fifty day moving average of $8.63 and a 200-day moving average of $8.36.

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

ADT Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 2nd. Investors of record on Thursday, September 11th were paid a dividend of $0.055 per share. The ex-dividend date of this dividend was Thursday, September 11th. This represents a $0.22 annualized dividend and a yield of 2.5%. ADT's dividend payout ratio (DPR) is currently 33.33%.

ADT 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.

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