In a move to execute its share repurchase plan, ADT Inc., a provider of security, automation, and smart home solutions, has entered into an agreement to buy back 15 million shares of its common stock. The transaction, which took place on December 12, 2024, involves shares priced at $6.945 each, totaling an aggregate purchase amount of $104,175,000. The repurchase price represents a slight discount to the current market price of $7.09, with the company currently valued at $6.37 billion.
This repurchase is part of a larger Share Repurchase Plan that was approved by ADT's board of directors in January 2024. Under this plan, the company is authorized to repurchase up to $350 million of its common stock through January 29, 2025. Following the completion of this recent transaction, which is expected to settle around January 2, 2025, ADT will have about $5 million of capacity remaining under the plan.
According to InvestingPro data, ADT maintains a GOOD financial health score, with strong EBITDA of $2.43 billion and an attractive free cash flow yield of 17%.
The repurchase reflects the company's ongoing commitment to managing its capital and returning value to its shareholders. ADT, with its headquarters in Boca Raton, Florida, is listed on the New York Stock Exchange under the ticker symbol NYSE:ADT.
The information regarding this repurchase transaction is based on a recent SEC filing by ADT Inc.
In other recent news, ADT Inc. has seen significant changes in leadership and strategic financial moves. The company announced the retirement of Stephanie Drescher from the Board of Directors, and Wayne D. Thorsen, Executive Vice President and Chief Business Officer, is set to resign. These changes are part of ADT's transition from a "controlled company," as defined by the New York Stock Exchange rules, following a reduction in ownership by Apollo Global Management (NYSE:APO).
ADT has also reported a 5% increase in total revenue for the third quarter of 2024, reaching $1.2 billion. The company's recurring monthly revenue rose by 2% to $359 million, while the adjusted EBITDA grew by 6% to $659 million. As part of its growth strategy, ADT acquired a customer portfolio for $81 million, adding 49,000 subscribers.
The company announced a secondary public offering of 56 million shares, with an option for underwriters to purchase an additional 8.4 million shares. Concurrently, ADT plans to repurchase 16 million shares as part of its ongoing share repurchase program. In a recent strategic financial move, ADT entered into an amended and restated credit agreement, refinancing its existing $1.984 billion senior secured term facility.
These recent developments reflect ADT's commitment to growth and strategic planning. With the company's strong financial position and leadership transition, ADT continues to make strides in its financial and strategic operations.
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