SBA Communications (NASDAQ:SBAC) Shares Gap Down on Disappointing Earnings

SBA Communications Co. (NASDAQ:SBAC)’s stock price gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $217.82, but opened at $211.64. SBA Communications shares last traded at $216.15, with a volume of 216,037 shares traded.

The technology company reported $1.51 earnings per share for the quarter, missing analysts’ consensus estimates of $2.07 by ($0.56). SBA Communications had a net margin of 20.61% and a negative return on equity of 10.75%. The company had revenue of $660.50 million during the quarter, compared to analyst estimates of $665.21 million. During the same period in the prior year, the business earned $3.24 EPS. The business’s revenue for the quarter was down 2.7% on a year-over-year basis.

SBA Communications Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 18th. Stockholders of record on Thursday, August 22nd will be given a $0.98 dividend. This represents a $3.92 annualized dividend and a dividend yield of 1.81%. SBA Communications’s dividend payout ratio is currently 76.86%.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on SBAC. StockNews.com upgraded shares of SBA Communications from a “hold” rating to a “buy” rating in a research report on Friday. KeyCorp dropped their price objective on SBA Communications from $276.00 to $227.00 and set an “overweight” rating on the stock in a research note on Tuesday, April 30th. Wells Fargo & Company cut SBA Communications from an “overweight” rating to an “equal weight” rating and decreased their target price for the company from $230.00 to $220.00 in a research note on Monday, July 15th. TD Cowen dropped their price target on SBA Communications from $266.00 to $253.00 and set a “buy” rating on the stock in a research report on Tuesday, April 30th. Finally, BMO Capital Markets decreased their price objective on SBA Communications from $250.00 to $245.00 and set an “outperform” rating for the company in a research report on Tuesday. Two research analysts have rated the stock with a hold rating, ten have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, SBA Communications presently has a consensus rating of “Moderate Buy” and a consensus price target of $246.46.

Institutional Trading of SBA Communications

Several hedge funds and other institutional investors have recently modified their holdings of SBAC. Ridgewood Investments LLC acquired a new position in shares of SBA Communications in the second quarter valued at approximately $32,000. Family Firm Inc. acquired a new position in SBA Communications in the 2nd quarter valued at $36,000. Glassman Wealth Services increased its position in SBA Communications by 79.1% during the 4th quarter. Glassman Wealth Services now owns 154 shares of the technology company’s stock worth $39,000 after buying an additional 68 shares during the period. Pinnacle Bancorp Inc. lifted its holdings in shares of SBA Communications by 73.6% during the fourth quarter. Pinnacle Bancorp Inc. now owns 158 shares of the technology company’s stock worth $40,000 after buying an additional 67 shares in the last quarter. Finally, Allworth Financial LP boosted its position in shares of SBA Communications by 37.8% in the fourth quarter. Allworth Financial LP now owns 164 shares of the technology company’s stock valued at $42,000 after acquiring an additional 45 shares during the period. Institutional investors own 97.35% of the company’s stock.

SBA Communications Price Performance

The company has a market cap of $23.22 billion, a P/E ratio of 42.71, a PEG ratio of 0.69 and a beta of 0.65. The stock’s 50-day moving average price is $197.93 and its 200-day moving average price is $206.91.

SBA Communications Company Profile

SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. With a portfolio of more than 39,000 communications sites throughout the Americas, Africa and in Asia, SBA is listed on NASDAQ under the symbol SBAC.