Redwood Investment Management LLC Acquires Shares of 178,746 ADT Inc. $ADT

Key Points

• Redwood Investment Management acquired 178,746 shares of ADT during the second quarter, valued at approximately $1.16 million. Institutional investors collectively own 87.22% of ADT’s outstanding stock.
• Analysts maintain a generally cautious outlook, with a consensus “Hold” rating and an average price target of $8.23; Morgan Stanley recently raised its target to $7.75.
• ADT exceeded quarterly earnings and revenue expectations, reporting $0.23 in EPS and $1.31 billion in revenue. The company also declared a quarterly dividend of $0.055 per share, representing a 3.0% annualized yield.

Redwood Investment Management LLC acquired a new stake in shares of ADT Inc. (NYSE:ADT - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 178,746 shares of the security and automation business's stock, valued at approximately $1,162,000.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Norges Bank acquired a new stake in shares of ADT in the 4th quarter worth about $192,996,000. AQR Capital Management LLC boosted its stake in ADT by 124.6% during the 3rd quarter. AQR Capital Management LLC now owns 36,160,099 shares of the security and automation business's stock valued at $314,954,000 after purchasing an additional 20,062,625 shares during the last quarter. Wasatch Advisors LP acquired a new position in ADT during the 4th quarter valued at about $56,927,000. Bank of New York Mellon Corp bought a new stake in ADT during the 2nd quarter worth approximately $34,130,000. Finally, Zimmer Partners LP increased its holdings in ADT by 164.8% during the 3rd quarter. Zimmer Partners LP now owns 8,077,811 shares of the security and automation business's stock worth $70,358,000 after purchasing an additional 5,026,754 shares in the last quarter. 87.22% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. BTIG Research began coverage on ADT in a report on Monday, August 17th. They issued a "neutral" rating on the stock. UBS Group set a $7.50 target price on ADT in a research report on Friday, May 1st. Weiss Ratings reiterated a "hold (c)" rating on shares of ADT in a report on Wednesday, July 15th. Finally, Morgan Stanley increased their price target on ADT from $7.50 to $7.75 and gave the company an "equal weight" rating in a research report on Friday, July 31st. Two equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $8.23.

ADT Stock Performance

Shares of ADT stock opened at $7.43 on Thursday. The company has a debt-to-equity ratio of 2.14, a quick ratio of 0.52 and a current ratio of 0.69. The company has a market capitalization of $5.43 billion, a price-to-earnings ratio of 10.46 and a beta of 1.00. ADT Inc. has a 52-week low of $6.24 and a 52-week high of $8.94. The company has a 50-day simple moving average of $7.07 and a two-hundred day simple moving average of $7.03.

ADT (NYSE:ADT - Get Free Report) last posted its earnings results on Thursday, July 30th. The security and automation business reported $0.23 EPS for the quarter, topping the consensus estimate of $0.22 by $0.01. ADT had a net margin of 11.85% and a return on equity of 18.99%. The firm had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.29 billion. During the same quarter last year, the firm earned $0.23 EPS. The company's quarterly revenue was up 1.9% compared to the same quarter last year. ADT has set its FY 2026 guidance at 0.910-0.910 EPS. Research analysts anticipate that ADT Inc. will post 0.9 EPS for the current fiscal 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 issued a dividend of $0.055 per share. This represents a $0.22 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date is Thursday, September 10th. ADT's dividend payout ratio (DPR) is 30.99%.

ADT Company Profile

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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