ADT (NYSE:ADT) Sets New 12-Month High – Here’s What Happened

ADT Inc. (NYSE:ADT)’s share price hit a new 52-week high on Thursday. The company traded as high as $9.97 and last traded at $9.9550, with a volume of 4,586,996 shares changing hands. The stock had previously closed at $7.41.

ADT News Roundup

Here are the key news stories impacting ADT this week:

• Positive Sentiment: Thrive Holdings will pay $10 per share, valuing ADT’s equity at approximately $7.6 billion and the transaction at $15.3 billion including debt. The offer represents a 45.6% premium to ADT’s unaffected October 27 closing price, giving shareholders a defined cash exit near the current trading level. ADT to Be Acquired by Thrive Holdings
• Positive Sentiment: The proposed acquisition combines ADT’s nationwide security network, recurring customer relationships and operating data with Thrive’s engineering resources and long-term capital. Investors see potential for artificial intelligence and automation to improve products, customer service and operating efficiency. Why AI Investors Are Buying ADT, Accountants and Call Centers
• Positive Sentiment: The transaction has no financing condition, with funding commitments provided by affiliates of Apollo Global Management. This reduces one important closing risk.
• Neutral Sentiment: The deal is expected to close in the first quarter of 2027, subject to shareholder and U.S. antitrust approval. ADT will remain publicly traded and operate independently until closing.
• Neutral Sentiment: ADT may solicit competing bids through November 28, with a possible 10-day extension. A higher offer could improve shareholder value, although there is no assurance another bidder will emerge.
• Negative Sentiment: Shareholder-law firms, including Brodsky & Smith and Ademi, announced investigations into whether the $10 offer fairly values ADT and whether insiders received appropriate benefits. Such reviews could create litigation, delay or deal-completion risk. Brodsky & Smith Shareholder Update

Analyst Upgrades and Downgrades

A number of research firms recently commented on ADT. Morgan Stanley decreased their target price on ADT from $7.75 to $7.25 and set an “equal weight” rating on the stock in a research report on Tuesday, October 13th. Weiss Ratings raised ADT from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday. Finally, BTIG Research initiated coverage on ADT in a report on Monday, August 17th. They set a “neutral” rating for the company. 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 company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $8.13.

ADT Stock Performance

The company has a market cap of $7.21 billion, a PE ratio of 11.48 and a beta of 1.04. 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 company has a 50-day moving average of $6.98 and a 200 day moving average of $7.09.

ADT (NYSE:ADT) last issued its quarterly earnings data on Thursday, July 30th. The security and automation business reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.01. The company had revenue of $1.31 billion for the quarter, compared to analysts’ expectations of $1.29 billion. ADT had a return on equity of 18.99% and a net margin of 11.85%. The firm’s revenue for the quarter was up 1.9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.23 earnings per share. Analysts predict that ADT Inc. will post 0.90 earnings per share for the current year.

Hedge Funds Weigh In On ADT

Large investors have recently modified their holdings of the stock. PNC Financial Services Group Inc. increased its stake in ADT by 151.4% in the 1st 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 period. Elevation Wealth Partners LLC boosted its position in ADT by 1,646.1% in the 3rd quarter. Elevation Wealth Partners LLC now owns 6,094 shares of the security and automation business’s stock valued at $37,000 after buying an additional 5,745 shares during the period. Parallel Advisors LLC boosted its position in ADT by 154.0% in the 1st quarter. Parallel Advisors LLC now owns 7,451 shares of the security and automation business’s stock valued at $49,000 after buying an additional 4,518 shares during the period. GAMMA Investing LLC boosted its position in ADT by 129.6% in the 2nd quarter. GAMMA Investing LLC now owns 7,709 shares of the security and automation business’s stock valued at $50,000 after buying an additional 4,352 shares during the period. Finally, MGO One Seven LLC bought a new position in ADT in the 3rd quarter worth about $62,000. Institutional investors own 87.22% of the company’s stock.

ADT Company Profile

ADT Inc is a security and smart-home services company that provides monitored protection and automation solutions for residential and commercial customers. Its offerings include professionally installed security systems, 24-hour alarm monitoring, video surveillance, fire and life-safety systems, access control, home automation and related emergency response services.

The company serves customers primarily in the United States, offering solutions designed to help protect homes, businesses and other facilities from burglary, fire and other risks.