ADT Inc. (NYSE:ADT) has seen a substantial increase in institutional investment, particularly from Allianz Asset Management GmbH, which raised its stake by an astonishing 2,089.4% during the second quarter. The firm now holds 14,638,575 shares of ADT, valued at approximately $123.99 million, after purchasing an additional 13,969,976 shares in the period. This surge in investment reflects growing confidence among institutional investors, who collectively own 87.22% of ADT’s stock.
Several other investment firms have also adjusted their positions in ADT recently. GAMMA Investing LLC increased its holdings by 69.5%, acquiring 1,329 shares during the second quarter, while AlphaQuest LLC raised its stake by 80.9% in the first quarter. New stakes were also taken by Bayforest Capital Ltd and Northwest Wealth Management LLC, indicating a broad interest in the company across the investment community.
The performance of ADT stock has garnered attention from various analysts, leading to a mix of ratings. Weiss Ratings confirmed a “buy” recommendation, while Wall Street Zen shifted to a “buy” from a “strong-buy.” Citigroup upped its target price for ADT from $9.00 to $10.00, indicating favorable expectations for the company’s future. In contrast, Zacks Research downgraded the stock from a “strong-buy” to a “hold.” Currently, ADT carries an average rating of “Hold” with a consensus price target set at $9.34.
Following the recent performance metrics, ADT’s stock opened at $8.61 on Thursday, with a market capitalization of $7.15 billion. The company reported a net margin of 12.30% and a return on equity of 18.58%, alongside revenue of $1.31 billion in its latest earnings release. Expectations for the current fiscal year indicate that ADT Inc. is forecast to post earnings per share of 0.7.
ADT also declared a quarterly dividend of $0.055 per share, amounting to an annualized dividend of $0.22 and a yield of 2.6%. The proactive steps taken by ADT signify their commitment to returning value to shareholders, particularly in a competitive market.
In insider news, significant share transactions were observed, notably involving major shareholder Apollo Management Holdings Gp, which sold 71 million shares in late July for over $590 million. Despite this decrease in stakes, insiders still maintain a 2.70% ownership in the company.
ADT continues to serve a vital role in providing security, interactive, and smart home solutions across the United States, catering primarily to residential and small business customers. As institutional interest builds, and with a mixed but generally optimistic analyst outlook, ADT appears positioned for continued relevance and growth in the security sector.