The American Tower Corp. (AMT) Rating Lowered to Hold at Zacks Investment Research

The American Tower Corp. (AMT) Rating Lowered to Hold at Zacks Investment Research

Zacks Investment Research lowered shares of American Tower Corp. (NYSE:AMT) from a buy rating to a hold rating in a research note published 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.”

Several other analysts have also issued reports on AMT. Citigroup Inc. increased their price objective on American Tower Corp. from $108.00 to $121.00 and gave the stock a buy rating in a report on Thursday, June 16th. BTIG Research increased their price objective on American Tower Corp. to $140.00 in a report on Tuesday, July 19th. They noted that the move was a valuation call. Jefferies Group increased their price objective on American Tower Corp. from $120.00 to $136.00 and gave the stock a buy rating in a report on Friday, July 29th. Argus raised their target price 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. initiated coverage on American Tower Corp. in a report on Monday, September 12th. They set a buy rating and a $128.00 target price on the stock. One investment analyst has rated the stock with a hold rating, twenty-one have assigned a buy rating and one has given a strong buy rating to the stock. The stock currently has an average rating of Buy and a consensus target price of $120.84.

Shares of American Tower Corp. (NYSE:AMT) opened at 113.34 on Wednesday. The firm has a market cap of $48.22 billion, a PE ratio of 70.35 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 firm’s 50-day moving average price is $111.69 and its 200 day moving average price is $110.39.

American Tower Corp. (NYSE:AMT) last announced its quarterly earnings data 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. American Tower Corp. had a return on equity of 11.73% and a net margin of 15.21%. The firm had revenue of $1.44 billion for the quarter, compared to analysts’ expectations of $1.44 billion. During the same quarter in the prior year, the business posted $1.26 earnings per share. American Tower Corp.’s revenue was up 22.8% on a year-over-year basis. Equities analysts anticipate that American Tower Corp. will post $5.70 EPS for the current year.

The company also recently announced a quarterly dividend, which was paid on Monday, October 17th. Stockholders of record on Friday, September 30th were paid a $0.55 dividend. The ex-dividend date was Wednesday, September 28th. This represents a $2.20 dividend on an annualized basis and a dividend yield of 1.94%. This is a boost from American Tower Corp.’s previous quarterly dividend of $0.53. American Tower Corp.’s payout ratio is 136.65%.

In other news, Director Carolyn Katz sold 5,000 shares of American Tower Corp. stock in a transaction that occurred on Tuesday, September 6th. The shares were sold at an average price of $116.34, for a total value of $581,700.00. Following the completion of the transaction, the director now owns 14,484 shares in the company, valued at $1,685,068.56. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Pamela D. A. Reeve sold 10,000 shares of American Tower Corp. stock in a transaction that occurred on Wednesday, August 17th. The shares were sold at an average price of $113.38, for a total transaction of $1,133,800.00. Following the completion of the transaction, the director now owns 21,437 shares of the company’s stock, valued at approximately $2,430,527.06. The disclosure for this sale can be found here. 0.95% of the stock is currently owned by insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Atalanta Sosnoff Capital LLC boosted its position 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 boosted its position 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 boosted its position 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 boosted its position 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 boosted its position 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 own 94.15% 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.

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