ADT: 4 Different Insiders Have Purchased Shares This Month

| About: The ADT (ADT)

In this article, I will feature one services sector stock that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.
  3. At least two purchasers increased their holdings by more than 10%.

The ADT Corporation (NYSE:ADT) provides electronic security, interactive home and business automation, and related monitoring services under the ADT, ADT Pulse, and Companion Service brands to residential and small business customers in the United States and Canada.

Insider buying during the last 30 days

Here is a table of ADT's insider-trading activity during the last 30 days by insider.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Donald Boerema SVP Feb 3 500 33,865 shares +1.5%
Michael Geltzeiler CFO Feb 3 10,000 31,900 shares +45.7%
Richard Daly Director Feb 3 3,000 3,510 shares +588.2%
Thomas Colligan Director Feb 3 3,000 12,285 shares +32.3%

There have been 16,500 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of ADT's insider-trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
February 2014 16,500 0
January 2014 0 0
December 2013 0 0
November 2013 0 14,741
October 2013 0 18,000
September 2013 0 18,000
August 2013 1,500 0
July 2013 0 0
June 2013 0 0
May 2013 1,500 0
April 2013 0 0
March 2013 0 0
February 2013 2,000 57,013
January 2013 0 0

There have been 21,500 shares purchased, and there have been 107,754 shares sold by insiders since January 2013. The month of February 2014 has seen the most insider buying.


ADT reported the fiscal 2014 first-quarter, which ended December 27, financial results on January 30 with the following highlights:

Revenue $839 million
Net income $77 million
Cash $80 million
Debt $4.4 billion

ADT's shares plunged after these results. The insiders started buying shares after the plunge.


ADT expects 4%-5% revenue growth for fiscal year 2014.

(Source: Earnings presentation)


ADT's competitors include Protection One, Monitronics International, and Vivint. Only ADT is publicly listed. ADT has the highest market share among these four companies.

(Source: January presentation)


There have been four different insiders buying ADT, and there have not been any insiders selling ADT during the last 30 days. Three of these four insiders increased their holdings by more than 10%. ADT has an insider ownership of 0.30%.

There are six analyst buy ratings, four neutral ratings, and zero sell ratings with an average price target of $41.79. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in ADT over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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