American Tower Corp. (AMT) Raised to “Buy” at Zacks Investment Research
American Tower Corp. (NYSE:AMT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Friday. The firm currently has a $126.00 price objective on the real estate investment trust’s stock. Zacks Investment Research’s price objective would indicate 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.”
Other equities research analysts have also issued reports about the company. BTIG Research upped their price target on American Tower Corp. to $140.00 in a research report on Tuesday, July 19th. They noted that the move was a valuation call. Citigroup Inc. upped their price target on American Tower Corp. from $121.00 to $134.00 and gave the company a “buy” rating in a research report on Monday, July 11th. SunTrust Banks Inc. initiated coverage on American Tower Corp. in a research report on Monday, September 12th. They issued a “buy” rating and a $128.00 target price on the stock. Jefferies Group reaffirmed a “buy” rating on shares of American Tower Corp. in a research report on Monday, September 12th. Finally, Argus increased their target price on American Tower Corp. from $120.00 to $130.00 and gave the stock a “buy” rating in a research report on Wednesday, August 17th. One analyst has rated the stock with a hold rating, twenty-one have assigned a buy rating and one has issued a strong buy rating to the stock. American Tower Corp. currently has a consensus rating of “Buy” and an average target price of $120.84.
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Shares of American Tower Corp. (NYSE:AMT) traded up 1.433% during midday trading on Friday, hitting $114.315. 269,145 shares of the company’s stock traded hands. American Tower Corp. has a 52 week low of $83.07 and a 52 week high of $118.26. The company has a 50 day moving average of $111.71 and a 200 day moving average of $110.10. The stock has a market cap of $48.64 billion, a P/E ratio of 70.959 and a beta of 0.62.
American Tower Corp. (NYSE:AMT) last posted 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 Thomson Reuters’ consensus estimate of $1.36 by $0.03. The firm had revenue of $1.44 billion for 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 was up 22.8% on a year-over-year basis. During the same period in the prior year, the company posted $1.26 earnings per share. On average, equities analysts forecast that American Tower Corp. will post $5.70 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Monday, October 17th. Shareholders of record on Friday, September 30th will be given a dividend of $0.55 per share. The ex-dividend date of this dividend is Wednesday, September 28th. This is a positive change from American Tower Corp.’s previous quarterly dividend of $0.53. This represents a $2.20 dividend on an annualized basis and a yield of 1.95%. American Tower Corp.’s dividend payout ratio (DPR) is presently 136.65%.
In other news, CEO James D. Taiclet, Jr. sold 40,625 shares of the firm’s 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 completion of the sale, the chief executive officer now directly owns 271,697 shares of the company’s stock, valued at approximately $31,704,322.93. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Carolyn Katz sold 5,000 shares of the firm’s stock in a transaction dated Tuesday, September 6th. The stock was sold at an average price of $116.34, for a total value of $581,700.00. Following the sale, the director now directly owns 14,484 shares of the company’s stock, valued at $1,685,068.56. The disclosure for this sale can be found here. Company insiders own 0.95% of the company’s stock.
Several large investors have recently bought and sold shares of the company. Loomis Sayles & Co. L P bought a new position in shares of American Tower Corp. during the first quarter worth $905,000. Sentry Investments Corp. raised its stake in American Tower Corp. by 5.0% in the first quarter. Sentry Investments Corp. now owns 261,314 shares of the real estate investment trust’s stock worth $26,751,000 after buying an additional 12,400 shares during the period. Barr E S & Co. raised its stake in American Tower Corp. by 12.7% in the first quarter. Barr E S & Co. now owns 24,309 shares of the real estate investment trust’s stock worth $2,489,000 after buying an additional 2,730 shares during the period. AXA raised its stake in American Tower Corp. by 1.0% in the first quarter. AXA now owns 690,587 shares of the real estate investment trust’s stock worth $70,695,000 after buying an additional 6,855 shares during the period. Finally, Pictet Asset Management Ltd. raised its stake in American Tower Corp. by 1.8% in the first quarter. Pictet Asset Management Ltd. now owns 224,471 shares of the real estate investment trust’s stock worth $20,696,000 after buying an additional 3,900 shares during the period. 94.23% of the stock is owned by institutional investors.
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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