American Tower logged a 2.0% change during today's morning session, and is now trading at a price of $222.8 per share. The S&P 500 index moved 0.9% and the Nasdaq posted a 1.7% change. AMT's trading volume is 237,112 compared to the stock's average volume of 2,027,356.
American Tower shares moved -17.4% over the last 52 weeks, with a high of $282.47 and a low of $178.17. During this time, the stock basically tracked the performance of the S&P 500. As of January 2022, the company's 50-day average price is $213.0.
American Tower Corporation, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 219,000 communications sites. The large-cap Real Estate company has 6,378 full time employees and is based in Boston, MA. American Tower has returned a 2.6% dividend yield over the last 12 months.
Overview of the Company's Heavy Use of Leverage:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|
| Revenue (MM) | $7,580 | $8,042 | $9,357 |
| Revenue Growth | n/a | 6.08% | 16.36% |
| Operating Margins | 35.5% | 38.9% | 35.6% |
| Operating Margins Growth | n/a | 9.58% | -8.48% |
| Net Margins | 24.9% | 21.02% | 27.44% |
| Net Margins Growth | n/a | -15.58% | 30.54% |
| Earnings Per Share | $4.24 | $3.79 | $5.66 |
| EPS Growth | n/a | -10.61% | 49.34% |
| Free Cash Flow (MM) | $2,761 | $2,850 | $3,443 |
| FCF Growth | n/a | 3.2% | 20.83% |
| Capital Expenditures (MM) | -$991 | -$1,032 | -$1,377 |
| Net Debt / EBITDA | 5.09 | 5.59 | 6.16 |
American Tower Is Overvalued:
Compared to the Real Estate sector's average of 27.16, American Tower has a trailing twelve month price to earnings (P/E) ratio of 35.0 and, based on its EPS guidance of 4.63, an expected P/E ratio of 48.1.
American Tower's price to book (P/B) ratio is 16.5 compared to its sector average of 2.39. The company is likley overvalued in terms of its net tangible assets. The company's shares are currently trading 498.8% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 4.56 * 13.492) = $37.21
American Tower Is the Subject of Mixed Market Indicators:
17 analysts are following American Tower and have set target prices ranging from $215 to $280 per share. On average, they have given the company a rating of buy. At the current price of $222.8, AMT is trading -10.46% away from its average analyst target price of $248.82 per share, implying an analyst consensus of some upside potential for the stock.
The company has a very low short interest since 0.9% of the company's shares are tied to short positions. Institutions own 93.0% of American Tower's shares, while the insider ownership rate stands at 0.2%. The biggest shareholder is the Vanguard Group, Inc. with a 13% stake in the company worth approximately $13,528,564,124.
