ADT Stock Is Tumbling After Hours: What's Happening?

ADT Inc ADT shares are trading lower after the bell on Wednesday after the company announced a secondary public offering and share repurchase.

What Happened: Security provider ADT has commenced a proposed secondary public offering of 55 million shares of its common stock held by certain entities managed by affiliates of Apollo Global Management. The underwriters will have a 30-day option to purchase up to an additional 8.25 million shares.

ADT is not selling any shares and will not receive any proceeds from the offering. The company said it will be concurrently buying 15 million shares from the underwriters as part of the secondary offering. The share repurchase will be part of the company’s existing $350 million buyback authorization.

See Also: Victoria’s Secret Stock Is Spiraling Lower: What’s Going On?

Is ADT A Good Stock To Buy?

Wall Street analysts view ADT on the whole as a Buy, given the history of coverage over the past three months. George Tong from Goldman Sachs in ADT is the most optimistic, expecting a 10.67% rise in the stock in the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past three months, ADT rose 19.52%, which indicates that opinion improved on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which fell 25.71% over the past year.

A complete overview of how Wall Street views individual stocks is available here, while real time updates on the latest analyst actions will be delivered via Benzinga PRO. Try it for free.

ADT Price Action: ADT shares were down 9.57% after hours at $6.76 following the announcement, according to Benzinga Pro.

Photo: 3844328 from Pixabay.