Zacks Investment Research lowered shares of Iron Mountain (NYSE:IRM) from a hold rating to a sell rating in a research note released on Thursday morning.
According to Zacks, “Shares of Iron Mountain have underperformed its industry over the past six months. Further, the trend in estimate revisions of 2018 funds from operations (FFO) per share does not indicate a favorable outlook for the company. Recently, the company acquired Lane Archive Technologies Limited in Philippines, adding scale and expanding its local and regional business that is already well established in the country. While such expansion efforts will drive top-line growth over the long term, the costs of such efforts will likely weigh on its financials, especially as the company already has a highly leveraged balance sheet. Amid the rising interest rate scenario, higher interest expense on debt is also expected to negatively impact its profitability going ahead. In addition, the company faces stiff competition from other players that reduces its pricing power.”
Other analysts have also recently issued reports about the company. Berenberg Bank assumed coverage on Iron Mountain in a research report on Thursday, September 20th. They issued a buy rating and a $52.00 price target on the stock. Barclays dropped their price target on Iron Mountain from $37.00 to $36.00 and set an equal weight rating on the stock in a research report on Tuesday, October 30th. ValuEngine raised Iron Mountain from a sell rating to a hold rating in a research report on Tuesday, November 13th. Stifel Nicolaus cut Iron Mountain from a buy rating to a hold rating and dropped their price target for the stock from $39.00 to $34.00 in a research report on Friday, October 26th. Finally, Bank of America assumed coverage on Iron Mountain in a research report on Tuesday, November 20th. They issued a neutral rating and a $34.00 price target on the stock. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and two have given a buy rating to the company’s stock. Iron Mountain has an average rating of Hold and a consensus target price of $36.86.
Shares of IRM opened at $34.83 on Thursday. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 4.18. Iron Mountain has a 52 week low of $30.22 and a 52 week high of $37.11. The company has a market capitalization of $9.85 billion, a PE ratio of 16.35, a P/E/G ratio of 2.62 and a beta of 0.69.
Iron Mountain (NYSE:IRM) last issued its quarterly earnings results on Thursday, October 25th. The financial services provider reported $0.28 EPS for the quarter, topping analysts’ consensus estimates of $0.27 by $0.01. Iron Mountain had a return on equity of 14.71% and a net margin of 5.49%. The firm had revenue of $1.06 billion for the quarter, compared to analysts’ expectations of $1.05 billion. As a group, analysts forecast that Iron Mountain will post 2.11 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Thursday, January 3rd. Investors of record on Monday, December 17th were given a $0.611 dividend. The ex-dividend date was Friday, December 14th. This is a boost from Iron Mountain’s previous quarterly dividend of $0.59. This represents a $2.44 annualized dividend and a yield of 7.02%. Iron Mountain’s dividend payout ratio is 114.55%.
In related news, Director Jennifer Allerton sold 3,000 shares of the company’s stock in a transaction that occurred on Tuesday, December 18th. The stock was sold at an average price of $33.75, for a total value of $101,250.00. Following the transaction, the director now directly owns 14,081 shares of the company’s stock, valued at approximately $475,233.75. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 1.60% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in IRM. Monument Capital Management bought a new position in Iron Mountain in the 3rd quarter valued at approximately $121,000. Columbia Asset Management bought a new position in Iron Mountain in the 3rd quarter valued at approximately $173,000. Qube Research & Technologies Ltd lifted its position in Iron Mountain by 775.9% in the 2nd quarter. Qube Research & Technologies Ltd now owns 5,772 shares of the financial services provider’s stock valued at $202,000 after acquiring an additional 5,113 shares in the last quarter. NTV Asset Management LLC bought a new position in Iron Mountain in the 3rd quarter valued at approximately $224,000. Finally, Clinton Group Inc. bought a new position in Iron Mountain in the 3rd quarter valued at approximately $233,000. 88.10% of the stock is currently owned by institutional investors and hedge funds.
About Iron Mountain
Iron Mountain Incorporated (NYSE: IRM), founded in 1951, is the global leader for storage and information management services. Trusted by more than 225,000 organizations around the world, and with a real estate network of more than 85 million square feet across more than 1,400 facilities in over 50 countries, Iron Mountain stores and protects billions of valued assets, including critical business information, highly sensitive data, and cultural and historical artifacts.
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