ADT (NYSE:ADT) Reaches New 12-Month Low – Should You Sell?

ADT Inc. (NYSE:ADT)’s stock price hit a new 52-week low during mid-day trading on Thursday . The company traded as low as $6.24 and last traded at $6.2950, with a volume of 4847829 shares traded. The stock had previously closed at $6.55.

Wall Street Analyst Weigh In

A number of research firms have commented on ADT. Citigroup reduced their price objective on shares of ADT from $10.00 to $8.50 and set a “buy” rating on the stock in a research note on Wednesday, March 4th. Morgan Stanley cut their target price on shares of ADT from $9.00 to $7.00 and set an “equal weight” rating on the stock in a research note on Tuesday, March 3rd. The Goldman Sachs Group reaffirmed a “buy” rating and set a $10.40 price target on shares of ADT in a research report on Monday, March 2nd. UBS Group set a $7.50 price target on ADT in a research note on Friday, May 1st. Finally, Barclays reissued an “underweight” rating and issued a $7.00 price objective on shares of ADT in a report on Friday, March 6th. Two analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $8.08.

ADT Stock Performance

The company has a market capitalization of $5.05 billion, a price-to-earnings ratio of 9.11 and a beta of 1.01. The stock has a 50 day simple moving average of $6.87 and a 200 day simple moving average of $7.31. The company has a quick ratio of 0.67, a current ratio of 0.84 and a debt-to-equity ratio of 1.94.

ADT (NYSE:ADT) last announced its quarterly earnings results on Thursday, April 30th. The security and automation business reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.21 by $0.02. ADT had a return on equity of 19.23% and a net margin of 12.12%.The business 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 business posted $0.21 EPS. The business’s revenue was up .9% on a year-over-year basis. ADT has set its FY 2026 guidance at 0.890-0.890 EPS. As a group, analysts anticipate that ADT Inc. will post 0.87 earnings per share for the current fiscal year.

ADT Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, July 7th. Stockholders of record on Thursday, June 11th will be issued a dividend of $0.055 per share. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $0.22 annualized dividend and a dividend yield of 3.5%. ADT’s payout ratio is 31.43%.

Insider Activity

In other news, Director Daniel Joseph Houston bought 36,450 shares of the firm’s stock in a transaction on Friday, May 8th. The stock was purchased at an average price of $6.87 per share, for a total transaction of $250,411.50. Following the transaction, the director owned 74,812 shares in the company, valued at approximately $513,958.44. This trade represents a 95.02% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Fawad Ahmad purchased 7,500 shares of the company’s stock in a transaction on Tuesday, May 12th. The stock was purchased at an average price of $6.75 per share, for a total transaction of $50,625.00. Following the purchase, the executive vice president directly owned 302,334 shares of the company’s stock, valued at $2,040,754.50. This trade represents a 2.54% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired 54,855 shares of company stock worth $376,172 in the last 90 days. 3.00% of the stock is currently owned by insiders.

Institutional Trading of ADT

Several large investors have recently added to or reduced their stakes in the business. Osaic Holdings Inc. boosted its position in ADT by 39.9% during the 2nd quarter. Osaic Holdings Inc. now owns 4,351 shares of the security and automation business’s stock worth $37,000 after acquiring an additional 1,240 shares during the period. Legal & General Group Plc increased its holdings in shares of ADT by 0.3% during the fourth quarter. Legal & General Group Plc now owns 501,861 shares of the security and automation business’s stock valued at $4,050,000 after purchasing an additional 1,445 shares during the period. F m Investments LLC increased its holdings in shares of ADT by 0.7% during the third quarter. F m Investments LLC now owns 239,027 shares of the security and automation business’s stock valued at $2,082,000 after purchasing an additional 1,602 shares during the period. Amundi raised its stake in shares of ADT by 0.5% during the third quarter. Amundi now owns 356,404 shares of the security and automation business’s stock valued at $3,104,000 after purchasing an additional 1,899 shares in the last quarter. Finally, Symmetry Partners LLC lifted its holdings in ADT by 18.7% in the fourth quarter. Symmetry Partners LLC now owns 12,509 shares of the security and automation business’s stock worth $101,000 after purchasing an additional 1,971 shares during the period. 87.22% of the stock is currently owned by institutional investors and hedge funds.

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.