ADT (NYSE:ADT) Sees Strong Trading Volume - Time to Buy?

Key Points

• ADT trading volume rose 22% to 13.35 million shares, above its average of 10.94 million; shares last traded at $9.915, versus a prior close of $9.86.
• Analysts’ consensus rating is Hold, with an average price target of $8.73. Barclays upgraded ADT to Equal Weight, while Morgan Stanley lowered its target to $7.25.
• ADT beat quarterly estimates, reporting EPS of $0.24 versus $0.23 expected and revenue of $1.35 billion versus $1.32 billion; revenue increased 3.9% year over year.

Shares of ADT Inc. (NYSE:ADT - Get Free Report) saw unusually-high trading volume on Monday. 13,345,667 shares changed hands during trading, an increase of 22% from the average daily volume of 10,937,531 shares. The stock last traded at $9.9150 and had previously closed at $9.86.

Analyst Ratings Changes

Several analysts have recently issued reports on ADT shares. Barclays upgraded ADT from an "underweight" rating to an "equal weight" rating and set a $10.00 price target for the company in a research note on Wednesday, November 4th. Morgan Stanley cut their price objective on ADT from $7.75 to $7.25 and set an "equal weight" rating on the stock in a research note on Tuesday, October 13th. Weiss Ratings upgraded ADT from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, October 29th. Finally, BTIG Research initiated coverage on ADT in a research report on Monday, August 17th. They set a "neutral" rating for the company. Two research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $8.73.

ADT Price Performance

The company has a market cap of $7.24 billion, a P/E ratio of 13.40 and a beta of 0.95. The stock has a 50-day simple moving average of $7.22 and a 200 day simple moving average of $7.14. The company has a debt-to-equity ratio of 1.80, a quick ratio of 0.38 and a current ratio of 0.47.

ADT (NYSE:ADT - Get Free Report) last released its quarterly earnings data on Tuesday, November 3rd. The security and automation business reported $0.24 EPS for the quarter, topping analysts' consensus estimates of $0.23 by $0.01. ADT had a net margin of 11.85% and a return on equity of 18.57%. The company had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.32 billion. During the same period last year, the firm earned $0.23 EPS. The firm's revenue for the quarter was up 3.9% compared to the same quarter last year. On average, equities analysts expect that ADT Inc. will post 0.90 EPS for the current year.

Hedge Funds Weigh In On ADT

Hedge funds and other institutional investors have recently made changes to their positions in the company. PNC Financial Services Group Inc. increased its holdings in ADT by 151.4% during the first quarter. PNC Financial Services Group Inc. now owns 4,957 shares of the security and automation business's stock worth $33,000 after buying an additional 2,985 shares during the last quarter. Elevation Wealth Partners LLC raised its position in ADT by 1,646.1% in the third quarter. Elevation Wealth Partners LLC now owns 6,094 shares of the security and automation business's stock worth $37,000 after acquiring an additional 5,745 shares during the period. Parallel Advisors LLC boosted its stake in ADT by 154.0% in the first quarter. Parallel Advisors LLC now owns 7,451 shares of the security and automation business's stock valued at $49,000 after acquiring an additional 4,518 shares during the last quarter. GAMMA Investing LLC boosted its stake in ADT by 129.6% in the second quarter. GAMMA Investing LLC now owns 7,709 shares of the security and automation business's stock valued at $50,000 after acquiring an additional 4,352 shares during the last quarter. Finally, StoneX Group Inc. purchased a new position in ADT in the third quarter valued at about $61,000. 87.22% of the stock is owned by institutional investors.

ADT Company Profile

ADT Inc provides professionally monitored security, automation and smart-home services to residential customers and businesses in the United States. Its offerings include intrusion detection, video surveillance, fire and life-safety systems, and remote monitoring and control through connected devices and mobile apps.

The company also serves commercial customers with security solutions such as access control, video surveillance and fire protection. ADT provides installation, maintenance and monitoring services, with offerings tailored to homes, small businesses and larger organizations.

ADT traces its roots to 1874, when American District Telegraph was established to provide telegraph-based alert services.

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