ADT Inc ( ADT ) shares are trading lower by 6.5% to $7.36 during Monday’s session following the announcement of a proposed secondary public offering of 56 million shares and a concurrent 16 million share repurchase by selling shareholder Apollo Global Management.

What To Know: ADT earlier announced the pricing of a secondary public offering of 56 million shares of its common stock, held by entities affiliated with Apollo Global Management.

This offering is set to close on October 30, 2024, pending customary conditions. The underwriters will have a 30-day option to purchase an additional 8.4 million shares. ADT will not sell any shares or receive any proceeds from this offering.

Additionally, ADT plans to buy 16 million shares from the underwriters at the same price paid by them to the selling stockholders, as part of its $350 million share repurchase program.

The underwriters will not receive fees for these repurchased shares. The offering will be managed by Barclays, Citigroup, and BTIG, who will facilitate the sale of shares in various markets.

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Should I Sell My ADT Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of ADT have gained 29.09% year to date. This compares to the average annual return of 0.06%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

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ADT has a 52-week high of $8.25 and a 52-week low of $5.53.