Apollo management sells $372 million in ADT Inc. shares

Apollo Management sold 45 million shares of ADT Inc. at $8.27 per share, totaling $372.15 million, according to an SEC filing; Apollo still holds 183,650,366 shares. The sale follows ADT's strong Q1 2025 results, with revenue up 7% to $1.3 billion and adjusted EPS increasing 11% to $0.21, while InvestingPro analysis suggests ADT is undervalued despite a 23% YTD return. Other news includes shareholder approval of key proposals and the retirement of Marques Coleman from the board.

Analysis

Apollo Management Holdings GP, LLC, and its affiliates have executed a significant divestment in ADT Inc. (NYSE:ADT), selling 45 million shares of common stock at $8.27 per share, amounting to approximately $372.15 million. Despite this sale, Apollo retains a substantial position with 183,650,366 shares. This transaction occurs as ADT trades at $8.43, marking a robust 23% year-to-date return, and while an InvestingPro analysis suggests the company may be undervalued. ADT recently posted strong first-quarter 2025 financial results, featuring a 7% increase in total revenue to $1.3 billion, an 11% rise in adjusted earnings per share to $0.21, and a 4% growth in adjusted EBITDA to $661 million. Growth drivers include new offerings such as the ADT Plus platform and AI integration. Corporate governance developments include shareholder approval of key proposals like director elections and executive compensation, ratification of PricewaterhouseCoopers LLP as the independent auditor, and the retirement of Marques Coleman from the ADT Board of Directors, which was stated as not due to any disagreements with the company. These elements collectively paint a picture of a company undergoing significant shareholder activity alongside positive operational performance and strategic advancements.

Key Decisions for Investors

• Investors should carefully weigh Apollo Management's sizable share sale against ADT's reported strong Q1 2025 financial performance, positive year-to-date stock return, and new technological initiatives.
• While an InvestingPro analysis suggests ADT is undervalued, it is pertinent to note that the same analysis indicated ADT was not at the top of its AI-driven ProPicks list, warranting a balanced perspective on its current valuation.
• Monitoring Apollo's future disposition of its remaining significant stake and assessing the quantifiable impact of ADT's AI integration and new platform features on subsequent earnings reports will be critical for evaluating the long-term investment thesis.