Zacks Investment Research Downgrades American Tower Corp. (AMT) to Hold
American Tower Corp. (NYSE:AMT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.
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 restated a “buy” rating on shares of American Tower Corp. in a research report on Monday, August 29th. Citigroup Inc. dropped their price target on shares of American Tower Corp. from $134.00 to $133.00 and set a “buy” rating on the stock in a research report on Wednesday, August 10th. BTIG Research boosted their price target on shares of American Tower Corp. to $140.00 in a research report on Tuesday, July 19th. They noted that the move was a valuation call. SunTrust Banks Inc. started coverage on shares of American Tower Corp. in a research report on Monday, September 12th. They issued a “buy” rating and a $128.00 price target on the stock. Finally, Argus boosted their price target on shares of American Tower Corp. from $120.00 to $130.00 and gave the stock a “buy” rating in a research report on Wednesday, August 17th. Two research analysts have rated the stock with a hold rating, twenty have given a buy rating and one has given a strong buy rating to the stock. The stock has an average rating of “Buy” and an average price target of $120.99.
This story is the sole property of American Banking News and it was originally published by American Banking News. If you are reading this story on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. The original version of this article is available at http://www.americanbankingnews.com/2016/10/12/zacks-investment-research-downgrades-american-tower-corp-amt-to-hold.html
Shares of American Tower Corp. (NYSE:AMT) traded up 2.10% on Wednesday, reaching $111.23. 1,041,043 shares of the company traded hands. The firm has a 50-day moving average price of $111.87 and a 200 day moving average price of $110.07. American Tower Corp. has a one year low of $83.07 and a one year high of $118.26. The company has a market capitalization of $47.33 billion, a PE ratio of 69.04 and a beta of 0.62.
American Tower Corp. (NYSE:AMT) last posted its earnings results on Thursday, July 28th. The real estate investment trust reported $1.33 EPS for the quarter, missing the consensus estimate of $1.36 by $0.03. American Tower Corp. had a return on equity of 11.73% and a net margin of 15.21%. The business had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.44 billion. During the same quarter in the prior year, the business earned $1.26 earnings per share. The firm’s quarterly revenue was up 22.8% on a year-over-year basis. Equities analysts forecast that American Tower Corp. will post $5.70 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Monday, October 17th. Stockholders of record on Friday, September 30th will be paid a $0.55 dividend. This is a positive change from American Tower Corp.’s previous quarterly dividend of $0.53. The ex-dividend date of this dividend is Wednesday, September 28th. This represents a $2.20 annualized dividend and a dividend yield of 2.02%. American Tower Corp.’s dividend payout ratio is presently 136.65%.
In related news, Chairman James D. Taiclet, Jr. sold 40,625 shares of the firm’s stock in a transaction dated Monday, September 19th. The shares were sold at an average price of $108.80, for a total transaction of $4,420,000.00. Following the completion of the sale, the chairman now owns 226,517 shares in the company, valued at $24,645,049.60. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Carolyn Katz sold 10,000 shares of the firm’s stock in a transaction dated Monday, August 8th. The stock was sold at an average price of $116.25, for a total transaction of $1,162,500.00. Following the sale, the director now owns 16,584 shares of the company’s stock, valued at approximately $1,927,890. The disclosure for this sale can be found here. 0.95% of the stock is currently owned by insiders.
A number of hedge funds have recently bought and sold shares of AMT. Atalanta Sosnoff Capital LLC increased its stake in American Tower Corp. by 22.6% in the second quarter. Atalanta Sosnoff Capital LLC now owns 756,884 shares of the real estate investment trust’s stock worth $85,990,000 after buying an additional 139,315 shares during the period. Standard Life Investments LTD increased its stake in American Tower Corp. by 5.6% in the second quarter. Standard Life Investments LTD now owns 4,467,595 shares of the real estate investment trust’s stock worth $507,519,000 after buying an additional 238,684 shares during the period. New York State Teachers Retirement System increased its stake in American Tower Corp. by 0.5% in the second quarter. New York State Teachers Retirement System now owns 752,616 shares of the real estate investment trust’s stock worth $85,505,000 after buying an additional 3,963 shares during the period. Waverton Investment Management Ltd increased its stake in American Tower Corp. by 0.3% in the second quarter. Waverton Investment Management Ltd now owns 99,781 shares of the real estate investment trust’s stock worth $11,336,000 after buying an additional 250 shares during the period. Finally, Smith Asset Management Group LP increased its stake in American Tower Corp. by 30,536.4% in the second quarter. Smith Asset Management Group LP now owns 101,100 shares of the real estate investment trust’s stock worth $11,486,000 after buying an additional 100,770 shares during the period. Institutional investors and hedge funds own 94.23% of the company’s stock.
About American Tower Corp.
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for American Tower Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for American Tower Corp. and related companies with MarketBeat.com's FREE daily email newsletter.