Morgan Stanley Issues Pessimistic Forecast for ADT (NYSE:ADT) Stock Price

ADT (NYSE:ADT) had its price target dropped by research analysts at Morgan Stanley from $9.00 to $7.00 in a research note issued on Tuesday,Benzinga reports. The brokerage currently has an “equal weight” rating on the security and automation business’ stock. Morgan Stanley’s price target would indicate a potential upside of 2.34% from the stock’s previous close.

Other analysts also recently issued research reports about the stock. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of ADT in a research report on Monday, December 29th. Zacks Research raised shares of ADT from a “strong sell” rating to a “hold” rating in a research report on Monday, February 16th. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $10.40 price target on shares of ADT in a report on Monday. Finally, Wall Street Zen downgraded shares of ADT from a “buy” rating to a “hold” rating in a research report on Saturday, November 8th. Two equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, ADT presently has an average rating of “Hold” and an average price target of $8.78.

ADT Trading Down 0.1%

NYSE ADT opened at $6.84 on Tuesday. The firm has a market capitalization of $5.61 billion, a price-to-earnings ratio of 10.36 and a beta of 1.00. The company has a debt-to-equity ratio of 1.95, a quick ratio of 0.54 and a current ratio of 0.93. ADT has a one year low of $6.65 and a one year high of $8.94. The company’s 50 day moving average price is $7.96 and its 200 day moving average price is $8.28.

ADT (NYSE:ADT) last released its quarterly earnings data on Monday, March 2nd. The security and automation business reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.20 by $0.03. ADT had a net margin of 11.60% and a return on equity of 19.16%. The company had revenue of $2.55 billion during the quarter, compared to analyst estimates of $1.30 billion. During the same quarter in the prior year, the business earned $0.20 earnings per share. The business’s quarterly revenue was up 1.3% compared to the same quarter last year. ADT has set its FY 2026 guidance at 0.890-0.890 EPS. On average, sell-side analysts predict that ADT will post 0.7 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Harbor Capital Advisors Inc. acquired a new stake in ADT during the 3rd quarter valued at $25,000. Los Angeles Capital Management LLC purchased a new position in shares of ADT during the fourth quarter valued at $28,000. Quent Capital LLC purchased a new position in shares of ADT during the third quarter valued at $28,000. IFP Advisors Inc raised its position in ADT by 1,759.1% during the third quarter. IFP Advisors Inc now owns 3,997 shares of the security and automation business’s stock valued at $35,000 after buying an additional 3,782 shares during the period. Finally, WPG Advisers LLC lifted its stake in ADT by 54.3% in the 3rd quarter. WPG Advisers LLC now owns 4,091 shares of the security and automation business’s stock worth $36,000 after acquiring an additional 1,440 shares in the last quarter. 87.22% of the stock is owned by hedge funds and other institutional investors.

ADT News Summary

Here are the key news stories impacting ADT this week:

• Positive Sentiment: ADT is pushing AI and product innovation — the company and partners are promoting machine‑learning/inverse‑design initiatives and a tie‑up with Origin AI to recast its smart‑home/security growth narrative; these efforts could improve unit economics and recurring‑revenue growth if adoption scales. ADT Harnesses Machine Learning…
• Positive Sentiment: Board announced a quarterly dividend (record Mar 12; payable Apr 2) producing ~3.2% yield — supports income investors and can steady the shareholder base. (Company release)
• Positive Sentiment: Citigroup lowered its price target but kept a Buy rating (new PT $8.50), implying upside vs. current levels — shows at least one major shop still sees medium‑term upside. Citigroup PT Cut
• Neutral Sentiment: Independent valuation and coverage checks are being published as the stock trades near recent lows; these pieces recap recurring‑revenue focus and valuation multiples but do not add new company guidance. Valuation Check
• Neutral Sentiment: Analyst consensus remains mixed/average (reported as a general “Hold” average), indicating no strong sell‑side conviction. Analyst Average Rating
• Neutral Sentiment: Unrelated industry equipment news (SCHMID delivery) is present in feeds but is unlikely to affect ADT’s share price. SCHMID Delivery
• Negative Sentiment: Investors reacted to ADT’s recent quarterly results and guidance: transcripts and reports flagged an EPS miss and a disappointing outlook that prompted a sharp one‑day selloff earlier in the week — that earnings reaction remains the principal short‑term pressure. Earnings Call Transcript
• Negative Sentiment: Morgan Stanley cut its price target to $7.00 and moved to an “Equal Weight” stance, reducing upside expectations and adding selling pressure. Morgan Stanley Downgrade
• Negative Sentiment: Market sentiment remains cautious — prior intraday moves showed an ~11% drop on earnings/outlook worries, and ADT still trades below its 50‑ and 200‑day averages, leaving technical traders cautious. Market Reaction

About ADT

ADT Inc is a leading provider of security and automation solutions for residential and commercial customers. The company offers a comprehensive suite of products and services, including intrusion detection systems, video surveillance, fire and carbon monoxide monitoring, and integrated smart home automation platforms. Through professional installation, continuous monitoring, and a network of 24/7 monitoring centers, ADT helps customers protect their properties, assets and loved ones.

Founded in 1874 as the American District Telegraph Company, ADT has evolved from one of the first telegraph-based alarm services into a modern security technology enterprise.