May 8, 2023 – SG Americas Securities LLC increased their stake in ADT Inc. by a whopping 177.3% during the fourth quarter, according to its latest filing with the Securities & Exchange Commission. The announcement reflects yet another demonstration of investor confidence in the security and automation industry.
ADT, a leading provider of security and automation solutions for homes and businesses, has been rising steadily on investors’ radars since its initial public offering (IPO) in early 2018. With innovative products and an extensive customer base, it has managed to maintain strong revenue growth over the past few years.
As per SG Americas Securities LLC’s most recent SEC filing, it now owns 37,978 shares of ADT after acquiring an additional 24,280 shares during the previous quarter. The value of those holdings at the end of last year amounted to $344,000.
The company also announced a quarterly dividend to be paid out on Thursday, July 6th. Shareholders who are record holders at the close of business on Thursday, June 15th will receive a dividend payment of $0.035 per share. This represents an annualized dividend payout of $0.14 per share and translates to a healthy yield of 2.43%.
Despite these positive developments, however, Citigroup recently downgraded its target price for ADT from $11.00 to $9.00 citing concerns about market saturation and intense competition within the industry.
Overall this is an exciting period for both ADT and investors alike for this burgeoning industry with tremendous potential for long-term growth. As more consumers invest in home automation technologies in attempt to achieve smart living ultimately raising awareness specifically around creative security systems such as those offered by ADT their stocks should continue upward movements towards profitability while increasing payout ratios which could possibly motivate more hedge funds’ attention with opportunities for expanding investments within its organization so it continues being successful through 2023.
ADT Sees Institutional Investors and Hedge Funds Make Moves as CEO and EVP Also Purchase Shares
ADT, the security and automation business, has recently seen a number of institutional investors and hedge funds adjust their positions regarding the company’s stock. The Treasurer of the State of North Carolina raised its stake in shares of ADT by 1.3% during Q3 2022 while National Bank of Canada FI increased its stake in shares by 198.0% in Q4 2022. Great West Life Assurance Co. Can also raised its stake during Q1 2023 by 13.2%. Utah Retirement Systems raised its stake in ADT shares by 9.1% during Q2 2023 while Legal & General Group Plc upped their stake by a further 1.9% during the same period. Currently, institutional investors and hedge funds own approximately 96.76% of ADT stock.
In exciting news for ADT shareholders, CEO James David Devries purchased an additional 50,000 shares at an average price of $4.96 per share, taking his total holding to over two million shares with a value exceeding $10 million. Also in May, EVP David W Smail made his own purchase according to SEC filings.
The company recently announced that it will pay out a quarterly dividend to shareholders on Thursday July 6th with dividends paid to shareholders who held stock as of June 15th amounting to $0.035 per share. This represents an annualized dividend of $0.14 and a yield of 2.43%, making it an attractive proposition for investors considering long term plans.
Despite these promising indicators for investment, some analysts note that ADT reported earnings below estimates through February and that over the past year the company’s stock has experienced highs and lows ranging from $4.89 to $10.10 respectively.
It remains to be seen whether these recent shareholder transactions will help grow ADT’s stock price as the company continues its pursuit of growth in the security and automation sector. With a market cap of $5.28 billion, ADT remains a significant player in the industry, though analysts concede that it can no longer rely on its historic image as a traditional security firm to achieve success if it wants to adapt to new technological transformation.
