ADT (NYSE:ADT) Rating Lowered to Strong Sell at Zacks Investment Research

Zacks Investment Research cut shares of ADT (NYSE:ADTGet Rating) from a buy rating to a strong sell rating in a research report released on Friday, Zacks.com reports.

According to Zacks, “ADT Inc. provides security and automation solutions for homes and businesses primarily in the United States and Canada. ADT Inc. is based in BOCA RATON, United States. “

Other research analysts have also issued research reports about the company. Morgan Stanley dropped their target price on ADT from $9.00 to $8.00 and set an equal weight rating for the company in a research report on Tuesday, April 12th. Citigroup started coverage on ADT in a research report on Wednesday, January 5th. They issued a buy rating and a $10.25 target price on the stock. Finally, Royal Bank of Canada lowered their target price on shares of ADT from $10.00 to $9.00 and set a sector perform rating on the stock in a research note on Wednesday, March 2nd. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and two have assigned a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of Hold and an average target price of $9.45.

ADT opened at $6.85 on Friday. The business has a 50 day simple moving average of $7.36 and a two-hundred day simple moving average of $7.93. The firm has a market capitalization of $6.18 billion, a price-to-earnings ratio of -16.71 and a beta of 2.09. The company has a debt-to-equity ratio of 2.95, a current ratio of 0.58 and a quick ratio of 0.38. ADT has a one year low of $6.65 and a one year high of $11.77.

ADT (NYSE:ADTGet Rating) last released its quarterly earnings results on Tuesday, March 1st. The security and automation business reported ($0.03) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.08 by ($0.11). The firm had revenue of $1.38 billion during the quarter, compared to analysts’ expectations of $1.32 billion. ADT had a negative return on equity of 6.46% and a negative net margin of 6.43%. The business’s quarterly revenue was up 5.0% on a year-over-year basis. During the same quarter last year, the business earned ($0.12) earnings per share. As a group, sell-side analysts expect that ADT will post 0.68 EPS for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which was paid on Monday, April 4th. Shareholders of record on Thursday, March 17th were paid a $0.035 dividend. The ex-dividend date of this dividend was Wednesday, March 16th. This represents a $0.14 dividend on an annualized basis and a yield of 2.04%. ADT’s dividend payout ratio is presently -34.15%.

A number of hedge funds have recently added to or reduced their stakes in ADT. Metropolitan Life Insurance Co NY acquired a new stake in shares of ADT in the fourth quarter worth $26,000. MCF Advisors LLC bought a new stake in shares of ADT in the 3rd quarter worth approximately $27,000. First Quadrant LLC CA bought a new stake in shares of ADT in the 1st quarter worth approximately $36,000. Neo Ivy Capital Management bought a new stake in shares of ADT in the 4th quarter worth approximately $43,000. Finally, Levin Capital Strategies L.P. acquired a new stake in ADT in the 4th quarter valued at approximately $84,000. 90.68% of the stock is currently owned by hedge funds and other institutional investors.

About ADT (Get Rating)

ADT Inc provides security, automation, and smart home solutions to consumer and business customers in the United States. It provides a range of fire detection, fire suppression, video surveillance, and access control systems to residential, commercial, and multi-site customers. The company primarily offers monitored security and automation solutions, including the installation and monitoring of security and premises automation systems designed to detect intrusion, control access, sense movement, smoke, fire, carbon monoxide, flooding, temperature, and other environmental conditions and hazards; and address personal emergencies, such as injuries, medical emergencies, or incapacitation.

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