American Tower Corp. (AMT) Upgraded by Zacks Investment Research to Buy
American Tower Corp. (NYSE:AMT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Friday. The firm presently has a $126.00 price objective on the real estate investment trust’s stock. Zacks Investment Research’s price objective indicates a potential upside of 11.80% from the company’s previous close.
According to Zacks, “American tower will benefit from increased investment of wireless carriers as they push towards deployment of 5G networks. Moreover, American Tower has been focusing on its operations in India which include acquisition of 51% control in Viom Networks and the tower deal with Bharti Airtel’s Tanzania unit. These transactions will increase the tower count as well as help the company build stronger ties with mobile network operators such as Bharti Airtel, Vodafone, Idea, Tata, Reliance and Aircel. Going forward, we believe that American Tower’s buyout of towers in emerging markets should help drive its top line and lend a competitive edge over rivals. However, high customer concentration, foreign currency exchange rate risks, stiff competition, integration risks, rising operating expenses and a highly leveraged balance sheet are near-term risks.”
A number of other brokerages also recently issued reports on AMT. Jefferies Group upped their price target on American Tower Corp. from $120.00 to $136.00 and gave the company a “buy” rating in a report on Friday, July 29th. BTIG Research upped their price target on American Tower Corp. to $140.00 in a report on Tuesday, July 19th. They noted that the move was a valuation call. Citigroup Inc. lowered their price target on American Tower Corp. from $134.00 to $133.00 and set a “buy” rating for the company in a report on Wednesday, August 10th. Argus upped their price target on American Tower Corp. from $120.00 to $130.00 and gave the company a “buy” rating in a report on Wednesday, August 17th. Finally, SunTrust Banks Inc. began coverage on American Tower Corp. in a research note on Monday, September 12th. They issued a “buy” rating and a $128.00 price objective for the company. One equities research analyst has rated the stock with a hold rating, twenty-one have given a buy rating and one has issued a strong buy rating to the company. The company has a consensus rating of “Buy” and an average price target of $120.84.
Shares of American Tower Corp. (NYSE:AMT) opened at 112.70 on Friday. The firm has a market cap of $47.95 billion, a PE ratio of 69.96 and a beta of 0.62. American Tower Corp. has a 52 week low of $83.07 and a 52 week high of $118.26. The stock’s 50 day moving average is $111.71 and its 200-day moving average is $110.10.
American Tower Corp. (NYSE:AMT) last announced its quarterly earnings results on Thursday, July 28th. The real estate investment trust reported $1.33 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.36 by $0.03. The business earned $1.44 billion during the quarter, compared to analyst estimates of $1.44 billion. American Tower Corp. had a net margin of 15.21% and a return on equity of 11.73%. The business’s revenue for the quarter was up 22.8% compared to the same quarter last year. During the same period last year, the company earned $1.26 earnings per share. On average, equities analysts predict that American Tower Corp. will post $5.70 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Monday, October 17th. Investors of record on Friday, September 30th will be given a dividend of $0.55 per share. The ex-dividend date is Wednesday, September 28th. This is an increase from American Tower Corp.’s previous quarterly dividend of $0.53. This represents a $2.20 annualized dividend and a yield of 1.95%. American Tower Corp.’s dividend payout ratio is 136.65%.
In related news, CEO James D. Taiclet, Jr. sold 40,625 shares of the stock in a transaction dated Monday, July 18th. The stock was sold at an average price of $116.69, for a total transaction of $4,740,531.25. Following the transaction, the chief executive officer now directly owns 271,697 shares in the company, valued at $31,704,322.93. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Pamela D. A. Reeve sold 10,000 shares of the stock in a transaction dated Wednesday, August 17th. The stock was sold at an average price of $113.38, for a total value of $1,133,800.00. Following the transaction, the director now owns 21,437 shares in the company, valued at $2,430,527.06. The disclosure for this sale can be found here. Corporate insiders own 0.95% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the company. Wellington Management Group LLP increased its position in American Tower Corp. by 24.8% in the first quarter. Wellington Management Group LLP now owns 15,233,890 shares of the real estate investment trust’s stock valued at $1,559,493,000 after buying an additional 3,026,114 shares during the period. Cohen & Steers Inc. increased its position in American Tower Corp. by 50.7% in the second quarter. Cohen & Steers Inc. now owns 3,803,923 shares of the real estate investment trust’s stock worth $77,904,000 after buying an additional 1,280,386 shares during the period. Hitchwood Capital Management LP purchased a new position in American Tower Corp. during the second quarter worth approximately $136,332,000. Capital Research Global Investors increased its position in American Tower Corp. by 98.7% in the second quarter. Capital Research Global Investors now owns 1,517,627 shares of the real estate investment trust’s stock worth $172,418,000 after buying an additional 753,936 shares during the period. Finally, Prudential Financial Inc. increased its position in American Tower Corp. by 93.7% in the second quarter. Prudential Financial Inc. now owns 1,031,386 shares of the real estate investment trust’s stock worth $117,176,000 after buying an additional 498,810 shares during the period. Hedge funds and other institutional investors own 94.23% of the company’s stock.
American Tower Corp. Company Profile
American Tower Corporation is a holding company. The company owns, operates and develops wireless and broadcast communications real estate. Its primary business is leasing antenna space on multi-tenant communications sites to wireless service providers, radio and television broadcast companies, wireless data and data providers, government agencies and municipalities.
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