ADT (ADT) Declined Despite Solid Quarterly Results

Ariel Investments, an investment management company, released its “Ariel Fund” first-quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the Ariel fund gained +6.66% outperforming +1.40% and +3.39% gains of both the Russell 2500 Value Index and the Russell 2500 Index. The average annual returns of Ariel Fund (Investor class) for 1-, 5-, and 10-year periods were -8.74%, +5.80%, and +9.06% respectively, for the period ended March 31, 2023. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Ariel Fund highlighted stocks like ADT Inc. (NYSE:ADT) in the first quarter 2023 investor letter. Headquartered in Boca Raton, Florida, ADT Inc. (NYSE:ADT) is a smart home solutions provider. On June 1, 2023, ADT Inc. (NYSE:ADT) stock closed at $5.65 per share. One-month return of ADT Inc. (NYSE:ADT) was -1.91%, and its shares lost 24.26% of their value over the last 52 weeks. ADT Inc. (NYSE:ADT) has a market capitalization of $5.207 billion.

Ariel Fund made the following comment about ADT Inc. (NYSE:ADT) in its Q1 2023 investor letter:

“Alternatively, several positions weighed on performance. Leading provider of automated security solutions ADT Inc. (NYSE:ADT) underperformed in the period. Although ADT reported solid quarterly earnings results, with revenue and EBITDA ahead of consensus as well as the solar segment returning to profitability, management provided a disappointing financial outlook for 2023. Longer-term, we believe ADT’s industry-leading brand and national presence, coupled with its Google and State Farm strategic partnerships, position the company to be a prime beneficiary of growing demand for smart home technologies, including fully monitored residential security.”

ADT Inc. (NYSE:ADT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held ADT Inc. (NYSE:ADT) at the end of first quarter 2023 which was 23 in the previous quarter.

We discussed ADT Inc. (NYSE:ADT) in another article and shared the list of best stocks to buy now that are currently trading under $10. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.