ADT (NYSE:ADT) Price Target Cut to $7.00 by Analysts at Morgan Stanley

ADT (NYSE:ADT) had its price objective trimmed by Morgan Stanley from $9.00 to $7.00 in a research report released on Tuesday morning,Benzinga reports. The brokerage currently has an equal weight rating on the security and automation business’ stock.

ADT has been the topic of a number of other research reports. Weiss Ratings reiterated a “hold (c+)” rating on shares of ADT in a report on Monday, December 29th. Wall Street Zen cut ADT from a “buy” rating to a “hold” rating in a report on Saturday, November 8th. Zacks Research raised ADT from a “strong sell” rating to a “hold” rating in a research report on Monday, February 16th. Finally, The Goldman Sachs Group restated a “buy” rating and issued a $10.40 price objective on shares of ADT in a report on Monday. Two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $9.08.

ADT Stock Down 3.7%

ADT stock opened at $6.86 on Tuesday. The company has a 50 day moving average price of $7.98 and a two-hundred day moving average price of $8.29. The company has a debt-to-equity ratio of 1.99, a quick ratio of 0.54 and a current ratio of 0.67. The stock has a market capitalization of $5.62 billion, a P/E ratio of 10.39 and a beta of 1.00. ADT has a one year low of $6.65 and a one year high of $8.94.

ADT (NYSE:ADT) last posted its quarterly earnings data on Monday, March 2nd. The security and automation business reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.20 by $0.03. The business had revenue of $2.55 billion for the quarter, compared to analysts’ expectations of $1.30 billion. ADT had a return on equity of 19.33% and a net margin of 11.60%.The business’s revenue was up 1.3% on a year-over-year basis. During the same quarter last year, the firm earned $0.20 earnings per share. ADT has set its FY 2026 guidance at 0.890-0.890 EPS. As a group, sell-side analysts expect that ADT will post 0.7 EPS for the current year.

Institutional Trading of ADT

Several institutional investors have recently added to or reduced their stakes in ADT. Harbor Capital Advisors Inc. bought a new stake in shares of ADT in the 3rd quarter worth about $25,000. Quent Capital LLC bought a new stake in ADT in the third quarter valued at about $28,000. Los Angeles Capital Management LLC bought a new position in ADT during the 4th quarter worth approximately $28,000. IFP Advisors Inc grew its position in shares of ADT by 1,759.1% in the 3rd quarter. IFP Advisors Inc now owns 3,997 shares of the security and automation business’s stock worth $35,000 after acquiring an additional 3,782 shares in the last quarter. Finally, WPG Advisers LLC increased its holdings in shares of ADT by 54.3% in the 3rd quarter. WPG Advisers LLC now owns 4,091 shares of the security and automation business’s stock valued at $36,000 after acquiring an additional 1,440 shares during the last quarter. 87.22% of the stock is owned by institutional investors and hedge funds.

More ADT News

Here are the key news stories impacting ADT this week:

• Positive Sentiment: Company announced a $1.5 billion, three‑year share repurchase authorization and returned $791M to shareholders in 2025 — a clear capital‑return commitment that supports EPS per‑share metrics over time. GlobeNewswire Repurchase/Returns
• Positive Sentiment: ADT is accelerating AI and smart‑home capabilities (acquired Origin AI, expanding the ADT+ platform and ambient sensing), which management frames as the growth engine through 2030 with 5% revenue / 10% adj. EPS CAGR targets — a constructive long‑term narrative. Yahoo: Origin AI / ADT+
• Positive Sentiment: Q4 adjusted results and full‑year metrics showed cash generation and adjusted EPS improvement (adjusted EPS $0.23 Q4; full‑year adjusted EPS $0.89), supporting the company’s stated focus on free cash flow and buybacks. GlobeNewswire Q4 Results
• Neutral Sentiment: Analysts maintain an average “Hold” rating on ADT, reflecting mixed views on near‑term execution versus long‑term strategy. AmericanBankingNews: Analyst Ratings
• Neutral Sentiment: Several writeups are performing valuation checks and arguing the post‑drop level could present an opportunity — but opinions diverge (some see a buy, others remain cautious). Yahoo Valuation Check
• Negative Sentiment: FY‑2026 guidance disappointed: management set adjusted EPS at $0.89 (vs ~$0.90 consensus) and revenue at $5.1B (below ~$5.3B consensus). The softer near‑term outlook was the primary catalyst for selling pressure. Yahoo: Earnings & Guidance
• Negative Sentiment: Morgan Stanley cut its price target from $9 to $7 and moved to “equal weight,” signaling analysts may trim expectations after the guidance miss and raising the risk of further downgrades. Benzinga: MS Price Target Cut
• Negative Sentiment: Market reaction included a sharp one‑day decline after the results and outlook; there’s also a law‑firm investor probe (Johnson Fistel) into potential securities issues, which can add uncertainty. InsiderMonkey / Probe Reporting

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.