ADT’s narrower focus keeps paying off

Article Excerpt

ADT keeps signing up security customers at the same time it retains more and more of its existing ones. The company’s expanded services help drive that growth. We think the stock is an attractive buy; better still, it’s a Power Buy! ADT INC., $7.92, is a buy. The company (New York symbol ADT; TSINetwork Rating: Extra Risk) (adt.com; Shares outstanding: 821.8 million; Market cap: $6.9 billion; Dividend yield: 2.8%) is a leading provider of monitored security products and services to residential and small business customers in the U.S. ADT also offers certain Google products, including Internet-connected thermostats, smoke alarms and locks, to its customers. In addition to forming this partnership, Google invested $450 million in ADT; it now holds a 6.6% stake. Over the last few years, ADT has realigned its businees to focus on its key home and small business markets. In Octomer 2023, the company completed the sale of its commercial security, fire and life safety business unit to private equity firm GTCR for $1.6 billion…