ADT Stock Is Tumbling After Hours: What's Happening?
Portfolio Pulse from Adam Eckert
ADT Inc (NYSE:ADT) shares fell after hours following the announcement of a secondary public offering of 55 million shares held by Apollo Global Management affiliates, with an option for underwriters to buy an additional 8.25 million shares. ADT will not sell any shares nor receive proceeds from the offering but will repurchase 15 million shares as part of its $350 million buyback program. Despite the drop, analysts, including George Tong from Goldman Sachs, view ADT as a Buy, expecting a 10.67% rise in the coming year.
March 06, 2024 | 9:48 pm
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ADT Inc's stock fell after announcing a secondary public offering and share repurchase, but analysts remain optimistic about its future growth.
The short-term negative impact on ADT's stock price is likely due to the market's reaction to the dilution effect of the secondary public offering, despite the company's share repurchase plan. However, the optimism from analysts, including a significant price target increase from Goldman Sachs, suggests a potential rebound in the medium to long term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100