Topic: How To Invest

Power Growth Investor Hotline – Friday, September 9, 2022

Article Excerpt

ADT INC., $8.39, is a buy. The company (symbol ADT on New York) is a leading provider of monitored security products and services to residential and commercial customers in the U.S. It has more than six million residential and small business customers. The company sells security and automation systems to help detect intrusion and hazards such as smoke, fire and flooding. It employs personnel to react to alarms and relay that information to first responders. ADT reports that State Farm will invest $1.2 billion in the company at $9.00 per share. It will acquire 133.3 million shares of ADT or 15% of the company. Privately held State Farm is the largest insurer of homes in the U.S. with 13.7 million homeowners’ policies in force. In connection with State Farm’s equity investment, ADT will buy back up to 133.3 million shares of its stock at $9 per share. The buyback will be funded by the proceeds from the State Farm equity investment.  The tender…