Massachusetts-based American Tower Corporation (AMT), boasting a market cap of $97.7 billion, is a leading global REIT specializing in multitenant communications real estate. As a key player in wireless infrastructure, AMT supports global connectivity through its vast portfolio of sites and advances next-generation technologies like 5G, powering reliable networks for billions worldwide.
Companies worth more than $10 billion are generally described as “large-cap stocks,” American Tower exemplifies this classification, highlighting its remarkable scale, resilience, and industry leadership. As a global powerhouse in multitenant communications real estate, American Tower’s expansive portfolio and pivotal role in advancing technologies like 5G underline its stability and capacity to thrive in a dynamic digital landscape.
However, the wireless communications infrastructure company has declined 14.2% from its 52-week high of $243.56, achieved on Sept. 10. Shares of American Tower have declined 6.5% over the past three months, significantly underperforming the broader Dow Jones Industrials Average’s ($DOWI) 8.7% gains over the same time frame.
In the longer term, AMT stock rose 1.4% over the past 52 weeks but dropped 3.2% on a YTD basis, underperforming DOWI’s YTD gains of 19.2% and 26.8% returns over the last year.
To confirm the recent bearish trend, AMT has traded below its 50-day moving average since mid-October. However, the stock has been trading above its 200-day moving average since late November.
AMT’s stock dropped 4.2% following the release of its Q3 earnings on Oct. 29, which fell short of market expectations. Total revenues came in at $2.52 billion, missing the consensus estimate of $2.76 billion and showing flat growth year-over-year. However, funds from operations (FFO) increased by 2.3% annually to $2.64 per share, surpassing the consensus forecast of $2.54 per share.
The company reported a 1% decline in total property revenue, bringing it to $2.47 billion. Net income significantly dropped 235.2%, reflecting substantial headwinds during the quarter. Adjusted EBITDA declined slightly by 0.9% to $1.7 billion, highlighting ongoing challenges in maintaining operational growth.
However, its rival, Crown Castle Inc. (CCI), has declined 8.4% over the past 52 weeks and has dropped 7.8% on a YTD basis, lagging behind AMT over both time frames.
Despite AMT’s underperformance over the past year, analysts are moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 21 analysts covering it, and the mean price target of $241 suggests a premium of 15.3% to current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart