|Bid||232.70 x 800|
|Ask||233.82 x 900|
|Day's Range||232.59 - 234.41|
|52 Week Range||163.17 - 242.00|
|Beta (5Y Monthly)||0.42|
|PE Ratio (TTM)||64.82|
|Earnings Date||Feb 24, 2020 - Mar 01, 2020|
|Forward Dividend & Yield||3.78 (1.62%)|
|Ex-Dividend Date||Dec 24, 2019|
|1y Target Est||232.36|
American Tower Corporation (NYSE: AMT) today announced that it has completed its previously announced redemption of all of its outstanding 5.900% senior unsecured notes due 2021. The Company redeemed the notes pursuant to their terms at 106.7090% of the principal amount, plus accrued and unpaid interest up to, but excluding, January 15, 2020. The total aggregate redemption price was approximately $539.6 million, including $6.0 million in accrued interest. The Company financed the redemption with borrowings under its $2.25 billion senior unsecured revolving credit facility, as amended and restated in December 2019, and cash on hand. Upon completion of this redemption, none of the 5.900% notes remained outstanding.
In a set of interesting reports, Goldman Sachs telecom expert Brett Feldman turns his eye on the American wireless market – and its growing rollover to 5G technology. Feldman notes five reasons why 5G will drive a period of sustained growth for companies with an ‘in.’ While the analyst focuses on tower-leasing REITs, his basic point applies to most companies with a strong connection to the 5G switchover: wireless providers, device makers, chip makers.A look at three of Feldman’s points outlines what we can expect in the next couple of years, as 5G networks expand across the country. First, he notes the obvious – that 2020 will see an expansion of 5G coverage by the Big 4 mobile providers. Second, Apple will launch a 5G capable iPhone this year, which should help drive adoption of the new technology for the next several years. Third, as more users switch to 5G devices, data usage will increase, driving increased cell site density – it will be a virtuous circle.Feldman’s final two points touch on what he sees as the bottom line for investors interested in 5G stocks: that cell tower owners and operators are the best stock position to take as the switch begins and expands. For his fourth point, he notes that auctions this year and next will open up the mid-band spectrum, and drive tower new tower leases. And finally, in point five, Feldman sees the deployment of new antennas and consequent increase of mid-band spectrum use, driving the expansion of towers and the increase in tower loading and usage going forward.The move to 5G has potential to turn wireless markets upside down. The Big 4 have all initiated coverage in the new network, but so far only T-Mobile has launched it nation-wide. AT&T, Sprint, and Verizon are initiating 5G coverage on the high-band spectrum in limited, dense, urban markets. And a group of REITs that specialize in tower properties are positioned to gain, no matter how the chips fall out for the wireless providers.In this article, we’ll look at three Goldman Sachs 5G stock recommendations. All three score high on TipRanks’ Smart Score system – rating a 9 or 10. The Smart Score brings together collects and collates data on more than 6,500 stocks, information drawn from across the TipRanks database, and distills it down to a single number. A 9 or 10 rating indicates that the stock is likely to outperform the broader markets in the coming months.SBA Communications Corporation (SBAC)First up is SBA Communications, a real estate investment trust. REITs are companies that buy, own, and operate various residential and commercial properties, making their profits on through rents and management fees. Cell tower properties are a common commercial investment for REITs, and as pointed out above, this combination is Brett Feldman’s favorite 5G investment. SBA is exactly that type of REIT; it owns and operates wireless infrastructure, including small cells, distributed antenna systems, and traditional cell sites.The popularity of wireless systems, the necessity of the tech infrastructure to modern life, and the switch to 5G have all put SBA on an upward trajectory. The shares gained 50% in 2019. The company has consistently beaten the expectations in the quarterly earnings reports.The numbers show that, as far as they can. In Q3 2019, the most recent reported, SBAC showed funds from operations (FFO – the REIT equivalent to earnings per share) of $2.15, opposed to the expected $2.08 and up 12% from the year-ago value. Revenues were equally strong. At $507.55 million, revenues were 2% higher than forecast, and up 8.6% year-over-year.This strong stock performance got Feldman’s full attention. He upgraded SBAC to a Buy rating, writing, “We expect acceleration in domestic organic leasing growth as carriers expand their 5G coverage and begin to overlay mid-band spectrum, and as SBAC sees a material decline in M&A driven churn. We estimate that over the next five years, SBAC can repurchase $7.1bn of stock and return $1.3bn in dividends to shareholders, while maintaining leverage at 7.0x net debt/EBITDA.”Feldman put a $280 price target on SBAC, indicating room for 12% growth in the next 12 months.SBA gets a Moderate Buy rating from the analyst consensus, based on 2 Buys and 1 Hold. The relatively small number of reviews reflects the ‘under the radar’ profile of most REITs in the markets; these stocks, while frequently strong on fundamentals, tend to get passed over in favor of bigger, flashier companies. Shares in SBAC sell for $248, and the $261.33 average price target suggests a modest 5% upside potential. (See SBA stock analysis at TipRanks)American Tower Corporation (AMT)The second stock on our list takes the tower-oriented REIT model a step up in size. American Tower is another owner/operator of wireless infrastructure – but this company has a $103 billion market cap and a global investment footprint. AMT owns over 170,000 telecom infrastructure sites. The company’s portfolio includes over 75,000 sites in Asia, 40,000 in the US, and 37,000 in Latin America. Another 16,000 sites in Europe, Africa, and the Mid-East round out AMT’s holdings.The full-year 2019 numbers are not available yet, but the value of the tower-oriented REIT is shown by AMT’s $7.44 billion in 2018 revenues. The most recent quarterly on record is from Q3, and shows a $2 FFO, 2% over expectation, and revenues of $1.95 billion, a 5% forecast beat. Both FFO and revenues were up significantly year-over-year. In reaction, AMT showed a 49% share appreciation last year.Feldman writes of AMT, “We believe that AMT should trade at a signiﬁcant premium to the median of high-quality REITs… We have also increased the terminal growth rate … to reﬂect our view that the 5G cycle is likely to support leasing activity well beyond our 5-year forecasting period.”In line with his upbeat outlook on the company, Feldman gave AMT shares his second upgrade – to a Buy rating. His $270 price target implies an upside potential of 15%.Like SBAC, American Tower has a Moderate Buy rating from the analyst consensus. This is based on 6 reviews, including 4 Buys and 2 Holds. The $243.83 average price target suggests an upside of 4% from the $233 current trading price. (See American Tower’s stock analysis at TipRanks)Verizon Communications (VZ)With Verizon, the third stock on our list, we shift gears from wireless infrastructure to a major wireless provider. Verizon is the second largest US wireless services company, by subscriber count, with over 118 million customers as of September 2019. The company’s $130 billion in 2018 revenue shows the both the size and income potential of the mobile market in the US.Verizon hasn’t seen the magnitude of gains that the tower REITs have, but the growth in wireless has given a boost to the company’s top and bottom lines. Revenues in Q3 last year were $32.9 billion, a half percent above the forecast, and the $1.25 EPS was 1% above the estimates. In a key metric – net retail additions – the 601,000 reported was up more than double year-over-year.Solid quarterly results and a firm position in a growth market attracted Feldman to Verizon. In his comments on Verizon, he writes, “How much could 5G boost postpaid ARPU/ARPA? Our analysis of Verizon’s unlimited pricing implies that its consumer accounts with unlimited plans generate monthly ARPA (average revenue per account) that is 11-48% higher than its reported consumer ARPA of $113.39 in 3Q19… [We see] signiﬁcant revenue growth opportunity for Verizon if the 5G upgrade cycle does indeed stimulate more customers to upgrade to unlimited plans, or to migrate to higher unlimited tiers.”Feldman reiterates his Buy rating on this stock, and raised his price target by 3% to $67. His new price target implies an upside for the stock of 7.6% in the coming 12 months. (To watch Feldman’s track record, click here)Like the two stocks above, Verizon holds a Moderate Buy consensus rating. In the case of VZ, this rating is based on 4 Buy and 6 Holds given in the past 3 months. Shares are selling for $59.04, and the average price target of $63.56 suggests an upside of ~8%. (See Verizon’s stock analysis at TipRanks)
American Tower (AMT) American Tower operates wireless and broadcast communications real estate, including wireless towers and distributed antenna systems.
In the daily bar chart of AMT, below, we can see that overall prices are in a positive position. Trading volume looks like it has been heavier since September and the On-Balance-Volume (OBV) line has strengthened since early November and is not far from making a new high. In the weekly bar chart of AMT, below, we can see a longer-term bullish setup.
American Tower (AMT) intends to use funds raised from its senior notes offering to reduce outstanding balances under the company's $2.25-billion senior unsecured revolving credit facility.
American Tower Corporation (NYSE: AMT) today announced the pricing of its registered public offering of senior unsecured notes due 2025 and 2030, in aggregate principal amounts of $750.0 million and $750.0 million, respectively. The 2025 notes will have an interest rate of 2.400% per annum and are being issued at a price equal to 99.905% of their face value. The 2030 notes will have an interest rate of 2.900% per annum and are being issued at a price equal to 99.560% of their face value. The net proceeds of the offering are expected to be approximately $1,483.4 million, after deducting underwriting discounts and estimated offering expenses. American Tower intends to use the net proceeds to repay existing indebtedness under its $2.25 billion senior unsecured revolving credit facility, as amended and restated in December 2019.
Eyeing growth opportunities in Africa, American Tower (AMT) closes the buyout of Eaton Towers, and will acquire the MTN's minority stakes in each of their JVs in Ghana and Uganda.
American Tower Corporation (NYSE:AMT) announced today that it has closed its previously announced acquisition of Eaton Towers Holdings Limited ("Eaton Towers"), adding approximately 5,700 communications sites to its African portfolio. Total consideration for the acquisition, subject to certain post-closing adjustments, was approximately $1.85 billion, including the assumption of existing Eaton Towers debt.
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...
Tower buyouts amid favorable trends in mobile-data usage are beneficial for American Tower (AMT). However, accelerated carrier consolidation-driven churn might hinder results.
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American Tower Corporation (NYSE: AMT) today announced that Jim Taiclet, its Chairman, President and Chief Executive Officer, is scheduled to present at the Citi 2020 Global TMT West Conference in Las Vegas, Nevada, on Tuesday, January 7, 2020 at 9:30 a.m. PT (12:30 p.m. ET). The live audio webcast link will be available on the Company's website.
American Tower Corporation (NYSE: AMT) today announced its election to call for redemption all of its outstanding 5.900% senior unsecured notes due 2021. The redemption date has been set for January 15, 2020. In accordance with the redemption provisions of the notes and the Indenture, dated as of May 13, 2010, as supplemented by the Supplemental Indenture No. 3, dated as of October 6, 2011, the notes will be redeemed at a price equal to the principal amount of the notes plus a make-whole premium calculated pursuant to the terms of the indenture, together with accrued and unpaid interest, if any, up to, but excluding, the redemption date. The Company intends to fund the redemption with borrowings under its senior unsecured revolving credit facility entered into in January 2012 and amended and restated in September 2014, as further amended.
American Tower (AMT) hikes quarterly dividend by 6.3%. However, accelerated carrier consolidation-driven churn continues to be a near-term woe.
American Tower Corporation (NYSE: AMT) today announced that its board of directors has declared its quarterly cash distribution of $1.01 per share on shares of the Company’s common stock. The distribution is payable on January 14, 2020 to such stockholders of record at the close of business on December 27, 2019.
The Zacks Analyst Blog Highlights: Berkshire Hathaway, Verizon Communications, Accenture, General Electric and American Tower
U.S. stocks seem to have returned to normal. A two-and-a-half session sell-off has been followed by a rally of equal length. While broad market indices remain modestly off their highs, it does seem like stability, at least, has returned heading into 2020.Source: Shutterstock In that context, the question at the moment is whether there's enough time, and enough optimism, for one more leg higher before year-end. And that question is of particular importance when looking at Friday's big stock charts. * 7 Hot Stocks for 2020's Big Trends All three stocks have missed out on at least part of this year's rally. And all three big stock charts show at least the potential for a breakout in the near-term. It will take some outside help, however -- with stronger broad market sentiment the simplest source at the moment.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Advance Auto Parts (AAP)Source: Provided by Finviz So far, 2019 has not been kind to Advance Auto Parts (NYSE:AAP). AAP stock actually has declined a bit over 3% this year, making it one of just 81 stocks in the S&P 500 in the red for 2019. The first of Friday's big stock charts suggests the news could get worse -- but there's hope for a reversal: * The exit from an ascending triangle pattern last week generally is a bearish move, and indeed AAP stock saw a small gap down on Tuesday. It seems likely that $154, which formerly acted as support, is reversing to resistance. That, too, suggests a negative outlook. * That said, AAP has found its footing in the past two sessions, with modest declines on heavy buying. There are buyers willing to step in at the moment. And if AAP can find a way to grind higher, there is some reason for bullishness. $154 could again act as support. Moving averages will come in. * Click to Enlarge Source: Provided by Finviz From a broad perspective, this simply is a stock still looking for direction. That's true looking at 2019 trading and going back to early 2016. With some bullishness toward the sector and/or broad markets, the stock's direction could reverse. * The concerns might be both valuation and the lack of a catalyst. AutoZone (NYSE:AZO) reports earnings next week, and good news could read across to both AAP stock and rival O'Reilly Automotive (NASDAQ:ORLY). But AZO stock has a similar valuation to AAP, and Advance Auto Parts earnings last month disappointed. Good news from AutoZone might lead investors to buy AZO moreso than AAP. So while there's potential for an upside reversion in Advance Auto Parts stock, this may be a 2020 story without a significant year-end market-wide rally. iQiyi (IQ)Source: Provided by Finviz The setup is there for Chinese streaming video play iQiyi (NASDAQ:IQ). If IQ stock can rally, the second of our big stock charts shows a path toward a breakout: * There's clear resistance from a near-term standpoint. IQ stock twice has stalled out at $20 in recent months. The broader trend is still modestly negative. And the 200-day moving average sits right at current levels. But if IQ stock can move above $20, the trend will look positive. The stock would make a bullish exit from a narrowing wedge. It would have cleared all three moving averages, and broken out the downtrend that has held since May. * All that said, a reversal is possible as well, given the multiple trendlines creating resistance. A reversal likely would move the stock back toward support around $17. * As I wrote this week, the swing factor might be the broader market. As I noted in October, IQ stock has somewhat missed out in the rally in Chinese stocks due to a reticence by U.S. investors to pay up for unprofitable companies. Shares still have lagged the likes of JD.com (NASDAQ:JD) and Alibaba (NYSE:BABA), both of which have reached 52-week highs in recent weeks. Investors are willing to take on China risk. If they're back to taking on growth stock risk as well, a breakout looms for iQiyi stock. Crown Castle International (CCI)Source: Provided by Finviz Celullar tower real estate investment trust Crown Castle International (NYSE:CCI) has struggled since reaching an all-time high in September. But CCI stock has righted itself over the last month, and the last of Friday's big stock charts shows hope for a rebound: * CCI stock is in the middle of a downtrend at the moment -- but it's also in the middle of a narrowing wedge. A move through the 50-day moving average would challenge a key pivot point at $138, and set shares up for a bullish exit. The trend certainly isn't confirmed yet, but a continued near-term rally could set up a breakout that would re-test September highs. * Meanwhile, valuation is reasonable. The stock trades at 22.7x the midpoint of 2019 guidance for adjusted funds for operations per share. Looking to 2020, the multiple drops closer to 21x. A 3.56% dividend yield adds to the case, particularly in a low interest rate environment and with the payout hiked 7% in October. * Click to Enlarge Source: Provided by Finviz It may be the sector, and 5G stocks more broadly, that define the near-term direction of CCI stock. Perhaps surprisingly, 5G plays have struggled of late. Qualcomm (NASDAQ:QCOM) has reversed since earnings. Nokia (NYSE:NOK) plunged after its Q3 report. And rival American Tower (NYSE:AMT) has a similar chart (and perhaps stronger hopes for a breakout from a descending triangle), though a higher valuation and lower yield. If bullishness toward 5G returns, the chart sets CCI up to be a prime beneficiary.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Hot Stocks for 2020's Big Trends * 7 Lumbering Large-Cap Stocks to Avoid * 5 ETFs for Oodles of Monthly Dividends The post 3 Big Stock Charts for Friday: Advance Auto Parts, iQiyi, and Crown Castle International appeared first on InvestorPlace.