SBA Communications (NASDAQ:SBAC) Reaches New 1-Year Low – Should You Sell?

SBA Communications Corporation (NASDAQ:SBAC) shares hit a new 52-week low on Friday . The stock traded as low as $175.39 and last traded at $174.8720, with a volume of 282500 shares traded. The stock had previously closed at $182.28.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on SBAC shares. Scotiabank cut their price objective on shares of SBA Communications from $233.00 to $223.00 and set a “sector perform” rating on the stock in a report on Monday, March 2nd. UBS Group lowered their target price on SBA Communications from $275.00 to $260.00 and set a “buy” rating for the company in a report on Tuesday, January 20th. Sanford C. Bernstein initiated coverage on SBA Communications in a research report on Thursday, March 5th. They set a “market perform” rating and a $218.00 target price on the stock. Morgan Stanley cut their price target on SBA Communications from $225.00 to $215.00 and set an “equal weight” rating on the stock in a report on Monday, March 2nd. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of SBA Communications in a research report on Friday, January 9th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and ten have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $232.17.

SBA Communications Stock Performance

The stock has a market cap of $18.56 billion, a P/E ratio of 18.27, a price-to-earnings-growth ratio of 1.73 and a beta of 0.86. The firm’s 50 day moving average is $190.66 and its 200 day moving average is $192.49.

SBA Communications (NASDAQ:SBAC) last posted its earnings results on Thursday, February 26th. The technology company reported $3.47 EPS for the quarter, beating analysts’ consensus estimates of $3.25 by $0.22. SBA Communications had a net margin of 36.40% and a negative return on equity of 20.81%. The company had revenue of $719.58 million during the quarter, compared to analysts’ expectations of $725.80 million. During the same quarter in the prior year, the company posted $3.47 earnings per share. SBA Communications’s revenue for the quarter was up 3.7% compared to the same quarter last year. As a group, analysts expect that SBA Communications Corporation will post 12.57 EPS for the current fiscal year.

SBA Communications Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 27th. Stockholders of record on Friday, March 13th will be given a $1.25 dividend. This represents a $5.00 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend is Friday, March 13th. This is a positive change from SBA Communications’s previous quarterly dividend of $1.11. SBA Communications’s payout ratio is 52.47%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Elevation Wealth Partners LLC grew its stake in shares of SBA Communications by 523.8% during the fourth quarter. Elevation Wealth Partners LLC now owns 131 shares of the technology company’s stock worth $25,000 after acquiring an additional 110 shares during the last quarter. Quent Capital LLC acquired a new stake in shares of SBA Communications during the third quarter worth $27,000. DV Equities LLC purchased a new stake in shares of SBA Communications during the fourth quarter valued at $29,000. Fulcrum Asset Management LLP acquired a new position in shares of SBA Communications in the 3rd quarter valued at $32,000. Finally, Geneos Wealth Management Inc. increased its position in shares of SBA Communications by 105.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 164 shares of the technology company’s stock valued at $36,000 after acquiring an additional 84 shares during the period. 97.35% of the stock is owned by institutional investors and hedge funds.

About SBA Communications

SBA Communications Corporation (NASDAQ: SBAC) is a real estate investment trust that owns, operates and develops wireless communications infrastructure. Its core business is the leasing of space on communications towers, rooftop sites and other wireless structures to mobile network operators, broadband providers and other wireless service customers. The company also provides site development, construction and ongoing site management services to support the deployment and operation of wireless networks.

In addition to traditional macro towers, SBA offers a range of infrastructure solutions designed for dense urban and suburban markets, including small cells, distributed antenna systems (DAS) and fiber backhaul and transport services.