ADT (NYSE:ADT) Sets New 12-Month Low - Time to Sell?

Key Points

• ADT shares fell 3.2% to a new 52-week low of $6.24, trading below both their 50-day and 200-day moving averages.
• Analysts maintain a consensus “Hold” rating with an average price target of $8.23; two analysts rate the stock Buy, four Hold, and one Sell.
• Despite the stock weakness, ADT exceeded quarterly earnings and revenue estimates, while maintaining a 3.6% dividend yield. Institutional investors own 87.22% of the company and several funds increased their positions.

Shares of ADT Inc. (NYSE:ADT - Get Free Report) hit a new 52-week low on Monday. The stock traded as low as $6.24 and last traded at $6.2050, with a volume of 199093 shares trading hands. The stock had previously closed at $6.40.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on ADT. Weiss Ratings restated a "hold (c)" rating on shares of ADT in a research note on Wednesday, July 15th. BTIG Research started coverage on shares of ADT in a research report on Monday, August 17th. They issued a "neutral" rating on the stock. Finally, Morgan Stanley boosted their price objective on shares of ADT from $7.50 to $7.75 and gave the company an "equal weight" rating in a research note on Friday, July 31st. Two analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $8.23.

ADT Trading Down 3.2%

The firm has a market cap of $4.53 billion, a PE ratio of 8.74 and a beta of 1.02. The company has a debt-to-equity ratio of 2.14, a current ratio of 0.69 and a quick ratio of 0.52. The business has a 50-day moving average price of $7.24 and a two-hundred day moving average price of $6.94.

ADT (NYSE:ADT - Get Free Report) last released its quarterly earnings data 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 business had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same period in the previous year, the firm earned $0.23 EPS. The business's revenue for the quarter was up 1.9% compared to the same quarter last year. ADT has set its FY 2026 guidance at 0.910-0.910 EPS. Analysts forecast that ADT Inc. will post 0.9 EPS for the current year.

ADT Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be given a $0.0550 dividend. The ex-dividend date is Thursday, September 10th. This represents a $0.22 annualized dividend and a dividend yield of 3.6%. ADT's dividend payout ratio is currently 30.99%.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of ADT. Sequoia Financial Advisors LLC raised its position in shares of ADT by 182.5% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 49,432 shares of the security and automation business's stock worth $321,000 after purchasing an additional 31,935 shares during the last quarter. Arizona State Retirement System grew its holdings in ADT by 10.2% during the 2nd quarter. Arizona State Retirement System now owns 162,236 shares of the security and automation business's stock valued at $1,055,000 after buying an additional 14,961 shares during the last quarter. Corient Private Wealth LP grew its holdings in ADT by 3.6% during the 2nd quarter. Corient Private Wealth LP now owns 114,441 shares of the security and automation business's stock valued at $746,000 after buying an additional 4,004 shares during the last quarter. Amundi increased its position in ADT by 1,033.8% during the second quarter. Amundi now owns 1,618,696 shares of the security and automation business's stock worth $10,522,000 after buying an additional 1,475,926 shares in the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in ADT during the second quarter worth $3,652,000. 87.22% of the stock is owned by hedge funds and other institutional investors.

ADT Company Profile

ADT Inc NYSE: ADT is a provider of security, automation and smart-home solutions for residential and commercial customers. The company offers professionally installed and monitored alarm systems, video surveillance, fire and life-safety products, access-control solutions, and home-automation services.

For residential customers, ADT provides security systems that can integrate alarms, cameras, locks, lighting, thermostats and other connected devices. Its services generally include 24-hour professional monitoring, mobile-app controls, video monitoring and related support.

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