The Case for and Against ADT Inc. (ADT)

ADT Inc. (ADT) is an interesting player in the Services space, with a focus on Security & Protection Services. The stock has been active on the tape, currently trading at $8.29, up from yesterday’s close by 4.02%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

ADT Inc. (ADT) currently trades with a market capitalization of $6.01 Billion. That value represents a market adjusting for revenues that have been growing by 5.40 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $559.38 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.11 on a per share basis this quarter. Perhaps, that suggests something about why 0.73% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how ADT has been acting. Looking at the stock’s movement on the chart, ADT Inc. recorded a 52-week high of $13.02. It is now trading 4.73% off that level. The stock is trading $8.27 its 50-day moving average by -0.02%. The stock carved out a 52-week low down at $6.93.

In recent action, ADT Inc. (ADT) has made a move of +13.56% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.11, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 3.91% with $725.44 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of ADT.

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