Principal Financial Group Inc. Raises Holdings in ADT Inc. $ADT

Key Points

• Principal Financial Group dramatically increased its ADT stake in the first quarter, buying 2.45 million additional shares and bringing its total holding to 2.46 million shares worth about $16.2 million.
• Insider buying was also notable, with EVP Kimberly Miller and EVP Omar Khan both purchasing shares in May, and insiders buying 54,855 shares over the past three months.
• ADT’s latest results showed better-than-expected earnings, with quarterly EPS of $0.23 topping estimates, while the company also pays a quarterly dividend that annualizes to a 3.2% yield.

Principal Financial Group Inc. lifted its position in ADT Inc. (NYSE:ADT - Free Report) by 17,352.6% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 2,462,039 shares of the security and automation business's stock after purchasing an additional 2,447,932 shares during the quarter. Principal Financial Group Inc. owned about 0.30% of ADT worth $16,176,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Teachers Retirement System of The State of Kentucky purchased a new stake in shares of ADT during the 1st quarter worth approximately $828,000. Commonwealth of Pennsylvania Public School Empls Retrmt SYS purchased a new position in shares of ADT in the first quarter valued at $825,000. Citizens Financial Group Inc. RI purchased a new position in shares of ADT in the first quarter valued at $108,000. Fifth Third Bancorp purchased a new position in shares of ADT in the first quarter valued at $2,486,000. Finally, Hsbc Holdings PLC increased its position in ADT by 35.3% in the first quarter. Hsbc Holdings PLC now owns 901,690 shares of the security and automation business's stock worth $5,946,000 after purchasing an additional 235,074 shares during the last quarter. 87.22% of the stock is owned by institutional investors.

Insider Activity at ADT

In related news, EVP Kimberly Miller purchased 3,625 shares of the firm's stock in a transaction dated Thursday, May 14th. The stock was purchased at an average price of $6.91 per share, with a total value of $25,048.75. Following the completion of the purchase, the executive vice president owned 55,984 shares of the company's stock, valued at approximately $386,849.44. The trade was a 6.92% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Omar Khan purchased 7,280 shares of the stock in a transaction that occurred on Monday, May 11th. The stock was purchased at an average price of $6.88 per share, with a total value of $50,086.40. Following the acquisition, the executive vice president directly owned 7,280 shares of the company's stock, valued at $50,086.40. This trade represents a ∞ increase in their position. The SEC filing for this purchase provides additional information. In the last three months, insiders acquired 54,855 shares of company stock valued at $376,172. 3.00% of the stock is owned by insiders.

Wall Street Analyst Weigh In

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

ADT Stock Up 0.1%

Shares of ADT opened at $6.89 on Thursday. The firm has a market capitalization of $5.06 billion, a P/E ratio of 9.85 and a beta of 1.01. ADT Inc. has a 12-month low of $6.24 and a 12-month high of $8.94. The company has a current ratio of 0.84, a quick ratio of 0.67 and a debt-to-equity ratio of 1.94. The firm has a fifty day moving average price of $6.76 and a 200-day moving average price of $7.14.

ADT (NYSE:ADT - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The security and automation business reported $0.23 EPS for the quarter, topping 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 company had revenue of $2.56 billion for the quarter, compared to the consensus estimate of $1.27 billion. During the same quarter last year, the firm posted $0.21 EPS. The firm's revenue was up .9% compared to the same quarter last year. ADT has set its FY 2026 guidance at 0.890-0.890 EPS. Equities research analysts expect that ADT Inc. will post 0.87 earnings per share for the current year.

ADT Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, July 7th. Stockholders of record on Thursday, June 11th were given a dividend of $0.055 per share. The ex-dividend date of this dividend was Thursday, June 11th. This represents a $0.22 dividend on an annualized basis and a dividend yield of 3.2%. ADT's dividend payout ratio (DPR) is 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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