Iron Mountain Incorporated (NYSE:IRM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Friday.

According to Zacks, “Iron Mountain’s third quarter 2017 FFO missed estimates but showed a year-over-year improvement. The company is investing a lot in setting up its data center business.  It recently acquired FORTRUST for $128 million. The costs of such initiatives weigh on its financials, especially as the company already has a highly leveraged balance sheet.  The company’s services business revenues also remain modest. Besides, forex fluctuations, fragmented nature of the industry and stiff competition continue to be overhangs. However, shares have outperformed the industry in the past one year.  Revenues this quarter were driven by synergies from Recall Holdings acquisition, transformation initiatives and continued strong performance of its storage rental business. Aggressive acquisitions along with diversified revenue base, a strong product portfolio and cost cutting initiatives bode well for long-term growth.”

Other equities research analysts have also recently issued reports about the stock. Stifel Nicolaus reaffirmed a “buy” rating and set a $43.00 price target (up from $40.00) on shares of Iron Mountain in a research note on Friday, October 20th. BidaskClub raised shares of Iron Mountain from a “hold” rating to a “buy” rating in a research note on Wednesday, July 5th. Robert W. Baird set a $39.00 price target on shares of Iron Mountain and gave the stock a “hold” rating in a research note on Friday, August 25th. Finally, Evercore ISI started coverage on shares of Iron Mountain in a research note on Wednesday, October 18th. They set an “outperform” rating and a $46.00 price target on the stock. Two equities research analysts have rated the stock with a sell rating, one has issued a hold rating, two have given a buy rating and one has assigned a strong buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus price target of $41.20.

Shares of Iron Mountain (IRM) traded up 0.86% during trading on Friday, reaching $40.00. 1,064,967 shares of the company’s stock were exchanged. The stock has a 50 day moving average price of $39.59 and a 200-day moving average price of $36.70. Iron Mountain has a 52 week low of $30.75 and a 52 week high of $41.17. The stock has a market capitalization of $10.58 billion, a price-to-earnings ratio of 54.87 and a beta of 0.91.

Iron Mountain (NYSE:IRM) last released its quarterly earnings results on Tuesday, October 24th. The financial services provider reported $0.31 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.29 by $0.02. Iron Mountain had a net margin of 5.54% and a return on equity of 15.49%. The company had revenue of $966.00 million for the quarter, compared to analysts’ expectations of $960.99 million. During the same period last year, the company earned $0.44 EPS. The firm’s revenue for the quarter was up 2.4% compared to the same quarter last year. Analysts predict that Iron Mountain will post $1.16 earnings per share for the current year.

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In related news, VP Patrick J. Keddy sold 23,428 shares of the firm’s stock in a transaction that occurred on Wednesday, October 11th. The shares were sold at an average price of $39.04, for a total value of $914,629.12. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP John Tomovcsik sold 21,037 shares of the firm’s stock in a transaction that occurred on Friday, September 8th. The stock was sold at an average price of $40.02, for a total transaction of $841,900.74. Following the completion of the sale, the executive vice president now directly owns 62,379 shares in the company, valued at $2,496,407.58. The disclosure for this sale can be found here. Insiders sold 76,329 shares of company stock worth $2,969,441 over the last three months. Corporate insiders own 1.50% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Commonwealth of Pennsylvania Public School Empls Retrmt SYS boosted its position in shares of Iron Mountain by 0.3% in the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 18,249 shares of the financial services provider’s stock worth $627,000 after acquiring an additional 56 shares during the last quarter. Louisiana State Employees Retirement System boosted its position in shares of Iron Mountain by 0.7% in the second quarter. Louisiana State Employees Retirement System now owns 15,200 shares of the financial services provider’s stock worth $522,000 after acquiring an additional 100 shares during the last quarter. Trust Investment Advisors boosted its position in shares of Iron Mountain by 0.3% in the second quarter. Trust Investment Advisors now owns 37,090 shares of the financial services provider’s stock worth $1,274,000 after acquiring an additional 115 shares during the last quarter. Meeder Asset Management Inc. boosted its position in shares of Iron Mountain by 0.5% in the second quarter. Meeder Asset Management Inc. now owns 24,290 shares of the financial services provider’s stock worth $834,000 after acquiring an additional 132 shares during the last quarter. Finally, Creative Planning boosted its position in shares of Iron Mountain by 4.6% in the second quarter. Creative Planning now owns 3,049 shares of the financial services provider’s stock worth $105,000 after acquiring an additional 134 shares during the last quarter. 87.54% of the stock is currently owned by institutional investors and hedge funds.

About Iron Mountain

Iron Mountain Incorporated (Iron Mountain) is engaged in storing records, primarily paper documents and data backup media, and provide information management services. The Company offers records management services, data protection and recovery services and information destruction services. Its information management services are divided into three categories: records management services, data protection and recovery services, and information destruction services.

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