ADT Stock (ADT): Why The Price Fell Today

By Amit Chowdhry ● Jan 6, 2022
  • The stock price of ADT Inc (NYSE: ADT) fell by over 8.5% during intraday trading today. This is why it happened.

The stock price of ADT Inc (NYSE: ADT) fell by over 8.5% during intraday trading today. Investors are responding negatively to a bearish research report.

RBC Capital analyst Ashish Sabadra downgraded ADT to a “Sector Perform” rating from an “Outperform” rating. And Sabadra reduced the price target from $12 to $10.

Sabadra pointed out that the company’s focus on subscriber growth weighed on its free cash flow. And Sabadra noted that wage and component inflation, along with the return of the COVID-induced temporary cost reductions, could potentially weigh on ADT’s free cash flows in 2022. Plus Sabadra acknowledged that the company’s limited disclosure on the Google partnership has been frustrating.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.