Trexquant Investment LP Reduces Stake in ADT Inc. $ADT

Key Points

• Trexquant Investment LP drastically reduced its stake in ADT Inc. by 84.3%, selling over 1 million shares, leaving it with 195,683 shares valued at approximately $1.59 million.
• Several other institutional investors increased their stakes in ADT during the first quarter, with Ieq Capital LLC boosting its stake by 114% and Redwood Investment Management by 305%.
• ADT recently declared a quarterly dividend of $0.055 per share, with an annualized yield of 2.5%, and has set its FY 2025 EPS guidance between 0.810 to 0.890.

Trexquant Investment LP trimmed its stake in ADT Inc. (NYSE:ADT - Free Report) by 84.3% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 195,683 shares of the security and automation business's stock after selling 1,051,669 shares during the quarter. Trexquant Investment LP's holdings in ADT were worth $1,593,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Ieq Capital LLC boosted its stake in ADT by 114.0% in the first quarter. Ieq Capital LLC now owns 806,227 shares of the security and automation business's stock valued at $6,563,000 after acquiring an additional 429,565 shares during the last quarter. Redwood Investment Management LLC lifted its stake in shares of ADT by 305.4% during the 1st quarter. Redwood Investment Management LLC now owns 161,198 shares of the security and automation business's stock valued at $1,312,000 after buying an additional 121,440 shares in the last quarter. Aristides Capital LLC purchased a new stake in shares of ADT during the 1st quarter valued at approximately $307,000. FORA Capital LLC purchased a new stake in shares of ADT during the 1st quarter valued at approximately $227,000. Finally, Caisse DE Depot ET Placement DU Quebec purchased a new stake in shares of ADT during the 1st quarter valued at approximately $4,195,000. 87.22% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of analysts recently commented on the stock. Zacks Research upgraded shares of ADT to a "strong-buy" rating in a research note on Tuesday, August 12th. Wall Street Zen upgraded shares of ADT from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 30th. Morgan Stanley upped their price target on shares of ADT from $9.00 to $9.50 and gave the company an "equal weight" rating in a research note on Monday, July 28th. Finally, Citigroup upped their price target on shares of ADT from $9.00 to $10.00 and gave the company a "buy" rating in a research note on Tuesday, August 26th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, ADT presently has an average rating of "Moderate Buy" and a consensus price target of $9.34.

Insider Activity at ADT

In other news, major shareholder Apollo Management Holdings Gp, sold 71,000,000 shares of the stock in a transaction on Monday, July 28th. The shares were sold at an average price of $8.31, for a total value of $590,010,000.00. Following the transaction, the insider owned 112,650,366 shares of the company's stock, valued at $936,124,541.46. This represents a 38.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 2.70% of the stock is owned by insiders.

ADT Stock Performance

ADT stock opened at $8.69 on Friday. The firm's 50 day simple moving average is $8.54 and its 200 day simple moving average is $8.21. The company has a current ratio of 0.46, a quick ratio of 0.37 and a debt-to-equity ratio of 1.84. The firm has a market capitalization of $7.22 billion, a PE ratio of 13.16 and a beta of 1.13. ADT Inc. has a 1-year low of $6.68 and a 1-year high of $8.89.

ADT (NYSE:ADT - Get Free Report) last posted its earnings results on Thursday, July 24th. The security and automation business reported $0.23 earnings per share for the quarter, topping analysts' consensus estimates of $0.19 by $0.04. The business had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.28 billion. ADT had a net margin of 12.30% and a return on equity of 18.58%. ADT's revenue was up 6.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.17 EPS. ADT has set its FY 2025 guidance at 0.810-0.890 EPS. As a group, analysts expect that ADT Inc. will post 0.7 earnings per share for the current fiscal year.

ADT Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 2nd. Stockholders of record on Thursday, September 11th will be issued a $0.055 dividend. The ex-dividend date of this dividend is Thursday, September 11th. This represents a $0.22 dividend on an annualized basis and a dividend yield of 2.5%. ADT's dividend payout ratio is presently 33.33%.

ADT Company 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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