SBA Communications (NASDAQ:SBAC) Shares Gap Up - Still a Buy?

Key Points

• SBA Communications shares jumped 6.4%, opening at $178.14 after closing at $170.01 and later trading near $180.80.
• Analyst sentiment remains mixed: the stock has a consensus “Hold” rating, with 8 Buy and 9 Hold ratings, and an average price target of $227.69.
• The company slightly exceeded quarterly earnings and revenue expectations, while maintaining a quarterly dividend of $1.25 per share, or a 2.8% annualized yield.

SBA Communications Corporation (NASDAQ:SBAC - Get Free Report)'s stock price gapped up before the market opened on Friday. The stock had previously closed at $170.01, but opened at $178.14. SBA Communications shares last traded at $180.7980, with a volume of 305,870 shares traded.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on SBAC shares. Royal Bank Of Canada lowered their price target on shares of SBA Communications from $245.00 to $210.00 and set an "outperform" rating on the stock in a report on Friday, July 10th. Morgan Stanley decreased their target price on shares of SBA Communications from $215.00 to $205.00 and set an "equal weight" rating on the stock in a report on Monday, September 21st. JPMorgan Chase & Co. lowered their target price on shares of SBA Communications from $230.00 to $220.00 and set a "neutral" rating on the stock in a research note on Tuesday, August 4th. Wells Fargo & Company raised shares of SBA Communications from an "equal weight" rating to an "overweight" rating and cut their price target for the company from $220.00 to $210.00 in a report on Friday, July 17th. Finally, Truist Financial reduced their price target on shares of SBA Communications from $248.00 to $238.00 and set a "buy" rating for the company in a research report on Wednesday, August 5th. Eight investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $227.69.

SBA Communications Stock Up 6.4%

The firm's fifty day moving average price is $179.40 and its 200-day moving average price is $190.80. The stock has a market cap of $19.19 billion, a P/E ratio of 19.44, a PEG ratio of 1.70 and a beta of 1.00.

SBA Communications (NASDAQ:SBAC - Get Free Report) last released its quarterly earnings data on Monday, August 3rd. The technology company reported $1.87 earnings per share for the quarter, topping the consensus estimate of $1.85 by $0.02. The business had revenue of $715.27 million during the quarter, compared to analysts' expectations of $706.01 million. SBA Communications had a negative return on equity of 20.67% and a net margin of 34.51%.The business's revenue was up 2.3% on a year-over-year basis. During the same quarter last year, the business posted $3.17 EPS. Sell-side analysts predict that SBA Communications Corporation will post 11.4 earnings per share for the current year.

SBA Communications Announces Dividend

The company 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. This represents a $5.00 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date was Thursday, August 20th. SBA Communications's dividend payout ratio (DPR) is presently 53.88%.

Insider Buying and Selling at SBA Communications

In related news, Director George R. Krouse, Jr. sold 300 shares of the company's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $182.67, for a total value of $54,801.00. Following the sale, the director directly owned 8,512 shares of the company's stock, valued at $1,554,887.04. This represents a 3.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 9.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On SBA Communications

Hedge funds have recently bought and sold shares of the company. Raiffeisen Bank International AG boosted its holdings in shares of SBA Communications by 184.8% during the 2nd quarter. Raiffeisen Bank International AG now owns 188 shares of the technology company's stock valued at $34,000 after acquiring an additional 122 shares during the last quarter. CX Institutional increased its position in shares of SBA Communications by 44.2% during the 2nd quarter. CX Institutional now owns 212 shares of the technology company's stock valued at $37,000 after purchasing an additional 65 shares during the last quarter. Eastern Bank purchased a new stake in SBA Communications during the second quarter valued at approximately $44,000. IFP Advisors Inc raised its holdings in SBA Communications by 392.0% in the 2nd quarter. IFP Advisors Inc now owns 369 shares of the technology company's stock worth $65,000 after purchasing an additional 294 shares during the period. Finally, Contravisory Investment Management Inc. purchased a new position in shares of SBA Communications during the 2nd quarter valued at about $68,000. Institutional investors own 97.35% of the company's stock.

SBA Communications Company Profile

SBA Communications Corporation is a real estate investment trust that owns, operates and develops wireless communications infrastructure. Its portfolio primarily includes communications towers, rooftops, small-cell networks and distributed antenna systems used by wireless service providers, government agencies and other communications customers.

The company generates revenue mainly by leasing antenna space and related infrastructure to tenants, who install equipment used to provide wireless voice and data services.

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