ADT Inc (ADT, Financial), a leading provider of monitored security, interactive home and business automation, and related monitoring services across the United States and Canada, has been in the spotlight due to its recent stock performance. The company, which offers a comprehensive set of burglary, video, access control, fire and smoke alarm, and medical alert solutions to residential, commercial, and multi-site customers, has seen significant changes in its ownership trends and earnings.
Recent Stock Performance and Market Cap Fluctuations
Over the past week, ADT Inc (ADT, Financial) has experienced a decline of about 2.65% in its stock value. As of October 3, 2023, the stock fell by 0.75%, a figure that contrasts with its three-month return of -1.77%. In the same period, the company's market cap dropped to $5.55 billion from $6.66 billion, sparking keen interest in ADT Inc's ownership trends.
Institutional Ownership and Key Players
ADT Inc's institutional ownership history provides valuable insights into the trust major players have in the company's future. As of August 31, 2023, ADT Inc's institutional ownership level stands at 14.24%, up from 11.93% on May 31, 2023, but down from 15.18% a year ago.
The top fund managers owning significant portions of ADT Inc's stock include John Rogers (Trades, Portfolio), Leon Cooperman (Trades, Portfolio), and Joel Greenblatt (Trades, Portfolio), holding 2.31%, 0.34%, and 0.03% of shares outstanding, respectively. Recent institutional trading activity further illuminates the market sentiment towards ADT Inc.
Earnings Analysis: Past and Future
Over the past three years, ADT Inc's EBITDA growth averaged -7.5% per year, a performance worse than 81.18% of 845 companies in the Business Services industry. However, looking ahead, the estimated earnings growth for ADT Inc is 0% per year, indicating a potential turnaround.
Insider Ownership and Activities
Insider ownership can offer valuable insights into the convictions of the company's board directors and C-level employees. As of August 31, 2023, ADT Inc's insider ownership is approximately 1.52%, down from 1.61% a year ago, signaling a slight decrease in confidence from those intimately familiar with the company's operations.
In the past three months, ADT Inc had one insider buy transaction: Wayne Thorsen, EVP, Chief Business Officer, bought 5,000 shares on September 6, 2023.
Conclusion
Understanding the nuances of ownership and earnings is crucial in the ever-evolving realm of stocks. ADT Inc's recent dip is a case study in how major players react to market shifts, offering crucial insights for potential investors. As always, combining past performance with future projections remains key to making sound investment decisions.
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