ADT Inc. [NYSE:ADT] shares were trading -1.25% to $8.31 on Wednesday. Comparativley, The S&P 500 is trading at 0.55%. For the year, the stock is trading 6.18% and the five-day change stands at 3.06%.
ADT’s next earning date is 11/04/2020. Currently, the company is booking earnings per share of -0.88 with the price-to-cash-flow at 8.14.
The company is also reporting -0.88 earnings per share.
The Bears are coming
Holding a Market Cap of $6.38 billion, ADT Inc. has seen a trading range over the last year of $3.40-$17.21.
For the last five days, ADT is up from its last closing price. The average shares trading hands each day is 6.88M, with average 10-day volume coming in at 4.27 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for ADT. When we apply the Elder Force Index to ADT Inc., we are seeing an Elder Force Indicator number of -99711.81.
The recent performance of the stock is another area that can tell traders how to proceed. ADT is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 7.17. Moreover, the company’s enterprise value has gone from $15.99B to $12.97B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, ADT made a profit of 955.04 million. ADT Inc. also saw quarter revenue growth year over year of 11.87%. In addition, the company has operating cash flow of $1.52 billion.
Looking at popular technical indicators, the company’s 5-day moving average is 8.31 compared to the 50-day moving average of 9.81. So, traders might want to tread carefully if they are going to bid.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. ADT currently holds a 9-day RSI of 35.99%, while 100-day RSI stands at 50.58%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. ADT’s 9-day MACD is 0.10 and the company’s 100-day MACD stands at -0.65.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 1.84% by insiders and 95.27% by institutions. Regarding institutional holdings, Apollo Management Holdings, L.P. owns 83.42%, while the second top holder, Miller Value Partners, LLC, currently owns 1.95%.
Over the last six months, insiders have sold 80,941 with the most recent transaction from Young Donald M., CIO & EVP, Field Operations, with a sell at price 10.00 per share.
Overall, the recommended rating for ADT is Moderate Buy. Currently, the company has 7 analysts watching the stock, and the average quarterly earnings estimate is 0.16. Quarterly revenue estimates are averaging 1.25B with the high estimate reaching 1.29B and the low at 1.2B.
To review, the current 1-year target estimate is sitting at 13.67, while the current price 8.31. Based on this, we expect the stock to rise considering the aforementioned fundamentals.