American Tower Corp. (NYSE: AMT) has seen a decline in its stock price by -0.00 in relation to its previous close of 221.47. However, the company has experienced a -3.47% decline in its stock price over the last five trading sessions. seekingalpha.com reported 2024-10-21 that American Tower remains overvalued, underperforming the S&P 500 by 40% since our last recommendation against investing in the company. The company’s substantial debt, lofty valuation, and moderate growth prospects limit its potential for future shareholder returns. Rising competition in the datacenter sector and a high payout ratio could hinder American Tower’s long-term dividend growth.
Is It Worth Investing in American Tower Corp. (NYSE: AMT) Right Now?
The price-to-earnings ratio for American Tower Corp. (NYSE: AMT) is above average at 41.59x, Company’s 36-month beta value is 0.83.Analysts have differing opinions on the stock, with 14 analysts rating it as a “buy,” 7 as “overweight,” 1 as “hold,” and 0 as “sell.”
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The public float for AMT is 465.86M, and currently, short sellers hold a 0.78% ratio of that floaft. The average trading volume of AMT on October 23, 2024 was 2.13M shares.
AMT’s Market Performance
AMT’s stock has seen a -3.47% decrease for the week, with a -6.27% drop in the past month and a 5.76% gain in the past quarter. The volatility ratio for the week is 2.00%, and the volatility levels for the past 30 days are at 1.74% for American Tower Corp. The simple moving average for the past 20 days is -2.11% for AMT’s stock, with a 8.43% simple moving average for the past 200 days.
Analysts’ Opinion of AMT
Many brokerage firms have already submitted their reports for AMT stocks, with Wells Fargo repeating the rating for AMT by listing it as a “Equal Weight.” The predicted price for AMT in the upcoming period, according to Wells Fargo is $230 based on the research report published on October 10, 2024 of the current year 2024.
Goldman, on the other hand, stated in their research note that they expect to see AMT reach a price target of $230. The rating they have provided for AMT stocks is “Buy” according to the report published on July 01st, 2024.
Raymond James gave a rating of “Strong Buy” to AMT, setting the target price at $248 in the report published on May 01st of the current year.
AMT Trading at -3.07% from the 50-Day Moving Average
After a stumble in the market that brought AMT to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -9.07% of loss for the given period.
Volatility was left at 1.74%, however, over the last 30 days, the volatility rate increased by 2.00%, as shares sank -6.35% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -1.81% lower at present.
During the last 5 trading sessions, AMT fell by -3.47%, which changed the moving average for the period of 200-days by +3.35% in comparison to the 20-day moving average, which settled at $226.24. In addition, American Tower Corp. saw 2.58% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at AMT starting from Goel Sanjay, who sale 5,000 shares at the price of $238.00 back on Sep 13 ’24. After this action, Goel Sanjay now owns 18,621 shares of American Tower Corp., valued at $1,190,000 using the latest closing price.
Goel Sanjay, the Officer of American Tower Corp., proposed sale 5,000 shares at $238.00 during a trade that took place back on Sep 13 ’24, which means that Goel Sanjay is holding shares at $1,190,000 based on the most recent closing price.
Stock Fundamentals for AMT
Current profitability levels for the company are sitting at:
- 0.35 for the present operating margin
- 0.55 for the gross margin
The net margin for American Tower Corp. stands at 0.22. The total capital return value is set at 0.07. Equity return is now at value 55.18, with 3.75 for asset returns.
Based on American Tower Corp. (AMT), the company’s capital structure generated 0.91 points at debt to capital in total, while cash flow to debt ratio is standing at 0.13. The debt to equity ratio resting at 10.28. The interest coverage ratio of the stock is 2.78.
Currently, EBITDA for the company is 6.51 billion with net debt to EBITDA at 6.32. When we switch over and look at the enterprise to sales, we see a ratio of 13.07. The receivables turnover for the company is 10.15for trailing twelve months and the total asset turnover is 0.17.
Conclusion
In a nutshell, American Tower Corp. (AMT) has experienced a mixed performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
