In recent trading, shares of ADT Inc (Symbol: ADT) have exceeded the average analyst 12-month target price of $7.98, currently priced at $8.14 per share. When a stock hits an analyst’s target, the analyst generally has two options: downgrade based on its valuation or raise their target price. Reactions often depend on the company’s performance and whether its prospects are improving, which could justify a higher target price.
Within the Zacks coverage universe, there are five different analyst targets for ADT Inc, resulting in this average. It’s important to note that averages can be misleading—some analysts have set lower targets, with one predicting a price of $7.00, while another has set a more optimistic target of $9.00. The standard deviation among these targets is $0.708.
The primary reason for examining the average price target is to benefit from the “wisdom of crowds.” It aggregates the opinions of various analysts instead of relying on a single expert’s view. Given that ADT’s share price has risen above the average target of $7.98 per share, this serves as a prompt for investors to reassess the company’s performance. They must consider whether $7.98 is merely a stop along the way to a higher target or if the stock has become overvalued and it might be wise to sell some shares. Below is a table summarizing the current analysis of ADT Inc:
| Recent ADT Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 2 | 2 | 2 | 2 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 2 | 2 | 2 | 2 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 1 | 1 | 1 | 1 |
| Average rating: | 2.6 | 2.6 | 2.6 | 2.6 |
The average rating in the table measures from 1 (Strong Buy) to 5 (Strong Sell). Information was sourced from Zacks Investment Research via Quandl.com. For additional insights, readers can access the latest Zacks research report on ADT for free.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
