Stock Market Today, May 4: ADT Falls as Apollo Exits Stake Through 102 Million-Share Offering

Written by Eric Trie for The Motley Fool->

ADT (NYSE:ADT), a provider of security, interactive, and smart home solutions in the United States, closed at $7.06, down 6.49%. Shares fell after news that Apollo Global Management would fully exit its position through a 102 million-share secondary offering. Investors are watching the impact of increased share supply and the company's concurrent buyback.

The company’s trading volume reached 50.1 million shares, which is about 309% above compared with its three-month average of 12.3 million shares. ADT went public in 2018 and has fallen 43% since its IPO.

S&P 500 (SNPINDEX:^GSPC) slipped 0.41% to 7,200.75, while the Nasdaq Composite (NASDAQINDEX:^IXIC) edged down 0.19% to 25,067.8. Among security & protection services peers, Brink's (NYSE:BCO) closed at $104.38 (-2.88%) and Allegion (NYSE:ALLE) finished at $132.49 (-2.21%), reflecting broader weakness across security-focused names.

ADT shares fell after Apollo-affiliated holders priced a secondary offering of about 102 million shares, representing Apollo’s remaining stake in the company. ADT itself is not selling shares and will not receive any proceeds from this deal, making the transaction a major shareholder exit rather than a capital raise for the company.

ADT is also repurchasing approximately 29.1 million shares from the underwriters under its existing $1.5 billion authorization, which accounts for less than one-third of the shares being sold in the offering. While the repurchase helps absorb some of the near-term supply, the primary concern for investors is the stock’s performance following Apollo’s exit and whether ADT’s buyback activity can mitigate downward pressure resulting from the block sale.

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Eric Trie has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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