Hsbc Holdings PLC Lowers Stock Position in ADT Inc. $ADT

Key Points

• HSBC Holdings reduced its ADT position by 17.7% in the second quarter, selling 159,341 shares and retaining 742,349 shares valued at approximately $4.84 million. Institutional investors collectively own 87.22% of ADT.
• Analysts maintain a generally neutral view, with an average rating of “Hold” and a consensus price target of $8.23; Morgan Stanley raised its target to $7.75.
• ADT reported quarterly revenue of $1.31 billion and adjusted earnings of $0.23 per share, both slightly ahead of expectations. The company also declared a quarterly dividend of $0.055 per share, implying a 3.1% annualized yield.

Hsbc Holdings PLC trimmed its holdings in ADT Inc. (NYSE:ADT - Free Report) by 17.7% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 742,349 shares of the security and automation business's stock after selling 159,341 shares during the quarter. Hsbc Holdings PLC owned approximately 0.10% of ADT worth $4,843,000 at the end of the most recent quarter.

A number of other large investors have also recently bought and sold shares of ADT. Los Angeles Capital Management LLC acquired a new position in ADT in the fourth quarter valued at $28,000. PNC Financial Services Group Inc. raised its holdings in shares of 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 buying an additional 2,985 shares during the last quarter. IFP Advisors Inc boosted its stake 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 worth $35,000 after buying an additional 3,782 shares during the period. Osaic Holdings Inc. grew 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 worth $37,000 after buying an additional 1,240 shares during the last quarter. Finally, Fairscale Capital LLC purchased a new position in shares of ADT during the fourth quarter worth about $41,000. Institutional investors and hedge funds own 87.22% of the company's stock.

Analysts Set New Price Targets

A number of analysts have weighed in on ADT shares. Weiss Ratings reaffirmed a "hold (c)" rating on shares of ADT in a research report on Wednesday, July 15th. Morgan Stanley boosted their target price on ADT from $7.50 to $7.75 and gave the company an "equal weight" rating in a report on Friday, July 31st. Finally, BTIG Research assumed coverage on ADT in a research note on Monday, August 17th. They set a "neutral" rating for the company. Two research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $8.23.

ADT Trading Down 2.0%

NYSE ADT opened at $7.08 on Thursday. The stock has a market capitalization of $5.17 billion, a P/E ratio of 9.97 and a beta of 1.02. ADT Inc. has a 52-week low of $6.24 and a 52-week high of $8.94. The firm has a 50-day moving average price of $7.25 and a 200 day moving average price of $6.99. The company has a quick ratio of 0.52, a current ratio of 0.69 and a debt-to-equity ratio of 2.14.

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 analysts' consensus estimates of $0.22 by $0.01. ADT had a return on equity of 18.99% and a net margin of 11.85%.The company had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same quarter in the previous year, the company earned $0.23 EPS. The firm's revenue for the quarter was up 1.9% compared to the same quarter last year. ADT has set its FY 2026 guidance at 0.910-0.910 EPS. Equities research analysts expect that ADT Inc. will post 0.9 EPS for the current year.

ADT Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be paid a $0.055 dividend. The ex-dividend date is Thursday, September 10th. This represents a $0.22 dividend on an annualized basis and a dividend yield of 3.1%. ADT's payout ratio is 30.99%.

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.

Want to see what other hedge funds are holding ADT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for ADT Inc. (NYSE:ADT - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.