ADT (NYSE:ADT) Shares Gap Up After Better-Than-Expected Earnings

Shares of ADT Inc. (NYSE:ADT) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $6.92, but opened at $7.38. ADT shares last traded at $7.36, with a volume of 1,374,046 shares trading hands.

The security and automation business reported $0.20 earnings per share for the quarter, topping analysts’ consensus estimates of $0.17 by $0.03. ADT had a net margin of 13.83% and a return on equity of 15.45%. The company had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.22 billion. During the same period in the prior year, the company earned $0.07 earnings per share. The firm’s revenue was up 5.4% compared to the same quarter last year.

ADT Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 9th. Investors of record on Thursday, December 12th will be paid a dividend of $0.055 per share. The ex-dividend date is Thursday, December 12th. This represents a $0.22 dividend on an annualized basis and a yield of 2.79%. ADT’s payout ratio is currently 31.43%.

Analysts Set New Price Targets

Several equities analysts have commented on the stock. Royal Bank of Canada raised their target price on shares of ADT from $8.00 to $9.00 and gave the company a “sector perform” rating in a research note on Friday. The Goldman Sachs Group lifted their price target on ADT from $8.20 to $9.20 and gave the company a “buy” rating in a research report on Friday.

Institutional Trading of ADT

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Acadian Asset Management LLC acquired a new position in ADT in the second quarter worth approximately $26,000. Altshuler Shaham Ltd acquired a new position in shares of ADT in the 2nd quarter worth $30,000. Duncker Streett & Co. Inc. purchased a new stake in shares of ADT during the second quarter valued at $38,000. Abich Financial Wealth Management LLC acquired a new position in shares of ADT in the 3rd quarter valued at $70,000. Finally, Diversify Advisory Services LLC purchased a new position in ADT in the 2nd quarter worth about $76,000. 87.22% of the stock is currently owned by institutional investors.

ADT Trading Down 3.2 %

The company has a current ratio of 0.75, a quick ratio of 0.59 and a debt-to-equity ratio of 1.98. The stock has a market cap of $7.27 billion, a price-to-earnings ratio of 11.26 and a beta of 1.53. The company has a fifty day simple moving average of $7.19 and a 200-day simple moving average of $7.16.

About ADT

ADT Inc provides security, interactive, and smart home solutions to residential and small business customers in the United States. It operates through two segments, Consumer and Small Business, and Solar. The company provides burglar and life safety alarms, smart security cameras, smart home automation systems, and video surveillance systems.