Norges Bank Invests $193 Million in ADT Inc. $ADT

Key Points

• Norges Bank initiated a new position in ADT during the fourth quarter, buying 23.9 million shares valued at about $193 million and taking a 2.92% stake in the company.
• ADT reported better-than-expected quarterly earnings, posting $0.23 EPS versus $0.21 expected, while revenue came in at $2.56 billion and slightly beat estimates.
• The company also declared a quarterly dividend of $0.055 per share, which annualizes to $0.22 and implies a 3.3% yield at the current share price.

Norges Bank purchased a new position in ADT Inc. (NYSE:ADT - Free Report) during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 23,915,277 shares of the security and automation business's stock, valued at approximately $192,996,000. Norges Bank owned 2.92% of ADT as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also recently made changes to their positions in the company. Vanguard Group Inc. increased its holdings in shares of ADT by 42.7% in the third quarter. Vanguard Group Inc. now owns 64,858,510 shares of the security and automation business's stock worth $564,918,000 after purchasing an additional 19,413,112 shares during the period. AQR Capital Management LLC increased its holdings in shares of ADT by 124.6% in the third quarter. AQR Capital Management LLC now owns 36,160,099 shares of the security and automation business's stock worth $314,954,000 after purchasing an additional 20,062,625 shares during the period. Dimensional Fund Advisors LP increased its holdings in shares of ADT by 6.6% in the third quarter. Dimensional Fund Advisors LP now owns 33,980,889 shares of the security and automation business's stock worth $295,980,000 after purchasing an additional 2,111,701 shares during the period. LSV Asset Management increased its holdings in shares of ADT by 8.5% in the fourth quarter. LSV Asset Management now owns 27,837,737 shares of the security and automation business's stock worth $224,651,000 after purchasing an additional 2,191,531 shares during the period. Finally, Alliancebernstein L.P. increased its holdings in shares of ADT by 7.1% in the third quarter. Alliancebernstein L.P. now owns 17,513,451 shares of the security and automation business's stock worth $152,542,000 after purchasing an additional 1,167,374 shares during the period. Institutional investors own 87.22% of the company's stock.

Insider Buying and Selling at ADT

In other ADT news, EVP Omar Khan purchased 7,280 shares of the business's stock in a transaction on Monday, May 11th. The stock was acquired at an average cost of $6.88 per share, for a total transaction of $50,086.40. Following the completion of the transaction, the executive vice president directly owned 7,280 shares in the company, valued at approximately $50,086.40. This represents a ∞ increase in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Fawad Ahmad purchased 7,500 shares of the business's stock in a transaction on Tuesday, May 12th. The shares were acquired at an average price of $6.75 per share, with a total value of $50,625.00. Following the completion of the transaction, the executive vice president owned 302,334 shares of the company's stock, valued at approximately $2,040,754.50. This trade represents a 2.54% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last ninety days, insiders have acquired 54,855 shares of company stock valued at $376,172. Corporate insiders own 3.00% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on ADT. Barclays reaffirmed an "underweight" rating and issued a $7.00 price target on shares of ADT in a report on Friday, March 6th. UBS Group set a $7.50 price target on shares of ADT in a report on Friday, May 1st. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $10.40 price target on shares of ADT in a report on Monday, March 2nd. Morgan Stanley cut their target price on shares of ADT from $9.00 to $7.00 and set an "equal weight" rating for the company in a research report on Tuesday, March 3rd. Finally, Zacks Research upgraded shares of ADT from a "strong sell" rating to a "hold" rating in a research report on Monday, February 16th. Two investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $8.08.

ADT Stock Performance

NYSE ADT opened at $6.66 on Thursday. The company has a 50-day simple moving average of $6.89 and a two-hundred day simple moving average of $7.48. The company has a quick ratio of 0.67, a current ratio of 0.84 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. The firm has a market cap of $5.27 billion, a price-to-earnings ratio of 9.51 and a beta of 1.01.

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

ADT Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, July 7th. Shareholders of record on Thursday, June 11th will be given a dividend of $0.055 per share. This represents a $0.22 annualized dividend and a yield of 3.3%. The ex-dividend date is Thursday, June 11th. ADT's dividend payout ratio is presently 31.43%.

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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