First Trust Advisors Reduces Stake in ADT Inc. by 26.7%

First Trust Advisors LP has reduced its stake in ADT Inc. (NYSE:ADT) by 26.7% during the second quarter of 2023, according to data from Holdings Channel. The investment firm owned 3,186,811 shares after selling 1,157,949 shares during this period. As of the end of June, First Trust’s holdings in the security and automation company were valued at approximately $26,993,000.

This adjustment reflects a broader trend among institutional investors modifying their positions in ADT. For instance, GAMMA Investing LLC significantly increased its stake in the company by 69.5% during the same quarter, now holding 3,240 shares valued at around $27,000 after acquiring an additional 1,329 shares. Similarly, AlphaQuest LLC raised its holdings by 80.9% in the first quarter, bringing its total to 5,301 shares worth $43,000.

Other firms also made notable changes to their positions. BNP PARIBAS ASSET MANAGEMENT Holding S.A. established a new stake in ADT valued at approximately $50,000, while Nomura Asset Management Co. Ltd. increased its shares by 51.2%, now owning 6,200 shares valued at $53,000. Additionally, Bayforest Capital Ltd. acquired a new position in the company in the first quarter, valued at about $74,000. Currently, institutional investors control 87.22% of ADT’s stock.

Financial Overview and Market Performance

As of Thursday, ADT Inc.’s stock opened at $8.11, reflecting a 1.3% increase. The company has a market capitalization of $6.64 billion and a price-to-earnings (P/E) ratio of 11.75. ADT’s financial health is characterized by a debt-to-equity ratio of 1.99, with a current ratio of 0.67 and a quick ratio of 0.54. The stock’s performance over the past year has seen a low of $6.71 and a high of $8.94.

In addition to market performance, ADT has announced a quarterly dividend of $0.055, scheduled for payment on January 8, 2024. Shareholders on record as of December 11, 2023, will receive this dividend, which translates to an annualized dividend of $0.22 and a yield of 2.7%. The company’s dividend payout ratio stands at 31.88%.

Analyst Ratings and Future Outlook

Recent analyst evaluations of ADT’s stock have exhibited a mix of sentiments. Weiss Ratings downgraded ADT from a “buy (B-)” to a “hold (C+)” rating. Similarly, Zacks Research decreased its rating from “strong buy” to “hold” on September 22, 2023. Conversely, Citigroup has raised its price target from $9.00 to $10.00 and maintained a “buy” rating. Wall Street Zen also adjusted its rating, downgrading ADT from “buy” to “hold.”

Currently, one analyst has assigned a “buy” rating while five analysts have given a “hold” rating. According to data from MarketBeat.com, ADT has an average rating of “hold” and an average price target of $9.38.

ADT Inc. specializes in providing security, interactive, and smart home solutions to both residential and small business customers across the United States. The company operates through two main segments: Consumer and Small Business, and Solar. Its offerings include burglar alarms, life safety systems, smart security cameras, smart home automation systems, and video surveillance solutions.

For further insights into hedge fund activities related to ADT, investors can visit HoldingsChannel.com to access the latest 13F filings and insider trades.