Why Shares in ADT Surged This Week
Shares in home security company ADT (NYSE: ADT) were up more than 15% in the week as of trading on Thursday afternoon. The move comes after the company announced some major news on Tuesday:
ADT has acquired some influential investors with deep pockets and substantive market positioning. For example, State Farm has 13.7 million homeowners policies, and combining them with ADT could result in lower insurance premiums. The idea is that homes using ADT security systems that use Google technology could reduce damage risk and improve security – and lower risk should mean lower premiums.
The potential to use smart, wireless-enabled technology to revolutionize home security is significant, and the latest developments will result in improved technologies that should increase adoption -- and customers should be able to reduce their premiums as a result.
Source Fool.com
