SBA Communications (NASDAQ:SBAC) Shares Gap Up - Here's Why

Key Points

• SBA Communications shares jumped 3.9%, opening at $196.06 versus the prior close of $178.39, after which they traded near $191.
• Analysts maintain a broadly cautious view: eight rate the stock a Buy and ten a Hold, producing an overall “Hold” consensus and an average price target of $226.53.
• The company exceeded quarterly expectations with $1.87 in EPS and $715.27 million in revenue, while continuing its $1.25 quarterly dividend, equivalent to a 2.7% yield.

SBA Communications Corporation (NASDAQ:SBAC - Get Free Report) gapped up before the market opened on Friday. The stock had previously closed at $178.39, but opened at $196.06. SBA Communications shares last traded at $191.0630, with a volume of 309,704 shares.

Analyst Upgrades and Downgrades

SBAC has been the topic of a number of research reports. Barclays reduced their target price on shares of SBA Communications from $208.00 to $207.00 and set an "overweight" rating on the stock in a report on Wednesday, September 30th. Truist Financial lowered their target price on SBA Communications from $248.00 to $238.00 and set a "buy" rating for the company in a report on Wednesday, August 5th. BMO Capital Markets reaffirmed a "market perform" rating on shares of SBA Communications in a research note on Monday, August 24th. Citigroup reaffirmed a "market perform" rating on shares of SBA Communications in a research report on Tuesday, August 4th. Finally, UBS Group lowered shares of SBA Communications from a "market perform" rating to a "hold" rating in a report on Monday, August 24th. Eight analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus price target of $226.53.

SBA Communications Trading Up 3.9%

The stock's fifty day moving average is $179.20 and its two-hundred day moving average is $191.21. The company has a market capitalization of $19.66 billion, a PE ratio of 19.76, a P/E/G ratio of 1.73 and a beta of 1.00.

SBA Communications (NASDAQ:SBAC - Get Free Report) last posted its quarterly earnings results on Monday, August 3rd. The technology company reported $1.87 EPS for the quarter, topping analysts' consensus estimates of $1.85 by $0.02. SBA Communications had a net margin of 34.51% and a negative return on equity of 20.67%. The company had revenue of $715.27 million for the quarter, compared to analysts' expectations of $706.01 million. During the same quarter in the previous year, the firm posted $3.17 EPS. SBA Communications's revenue was up 2.3% on a year-over-year basis. As a group, analysts anticipate that SBA Communications Corporation will post 11.40 EPS for the current fiscal year.

SBA Communications Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 17th. Stockholders of record on Thursday, August 20th were paid a $1.25 dividend. The ex-dividend date was Thursday, August 20th. This represents a $5.00 annualized dividend and a dividend yield of 2.7%. SBA Communications's dividend payout ratio (DPR) is presently 53.88%.

Insiders Place Their Bets

In other SBA Communications news, Director George R. Krouse, Jr. sold 300 shares of the business's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $182.67, for a total transaction of $54,801.00. Following the sale, the director owned 8,512 shares of the company's stock, valued at $1,554,887.04. The trade was a 3.40% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 9.50% of the company's stock.

Institutional Investors Weigh In On SBA Communications

Hedge funds and other institutional investors have recently modified their holdings of the stock. Arrowstreet Capital Limited Partnership increased its holdings in shares of SBA Communications by 47.8% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,615,054 shares of the technology company's stock worth $277,967,000 after purchasing an additional 522,442 shares during the period. Dimensional Fund Advisors LP lifted its position in SBA Communications by 3.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,612,785 shares of the technology company's stock worth $277,567,000 after buying an additional 46,620 shares during the last quarter. Diamond Hill Capital Management LLC Investment Advisor purchased a new stake in shares of SBA Communications in the 2nd quarter valued at $228,367,000. Bank of America Corp DE boosted its position in SBA Communications by 41.7% during the first quarter. Bank of America Corp DE now owns 1,005,366 shares of the technology company's stock valued at $173,033,000 after buying an additional 295,727 shares during the period. Finally, Sei Investments Co. boosted its holdings in SBA Communications by 7.1% during the 1st quarter. Sei Investments Co. now owns 672,105 shares of the technology company's stock valued at $115,673,000 after acquiring an additional 44,586 shares during the period. 97.35% of the stock is currently owned by institutional investors.

About SBA Communications

SBA Communications Corporation is a real estate investment trust that owns and operates wireless communications infrastructure. The company's portfolio primarily consists of wireless communications towers and related sites that support cellular, wireless broadband, and other communications equipment.

SBA Communications leases antenna space on its towers to wireless service providers, government agencies, and other communications companies. It also provides site development services, including zoning, permitting, construction, and project management, as well as tower construction and acquisition services in selected markets.

Founded in 1989 and headquartered in Boca Raton, Florida, SBA Communications serves customers across the United States and in parts of Central and South America.

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