Iron Mountain (IRM) Lowered to Hold at Zacks Investment Research
Zacks Investment Research cut shares of Iron Mountain (NYSE:IRM) from a buy rating to a hold rating in a research note released on Friday morning.
According to Zacks, “Iron Mountain’s third-quarter 2018 results reflected decent internal storage rental revenues. Further, the company announced a 4% hike in its quarterly dividend per share. This is backed by continued growth and durability of the company’s cash flows. Notably, strategic acquisitions, in a bid to strengthen its global footprint, will drive top-line growth in the future. Further, transformation initiatives, including expansion of data-center business, and continued strong performance of its storage rental business also remain positive. However, the costs of such efforts weigh on its financials, especially as the company already has a highly leveraged balance sheet. Further, rate hike adds to its woes. Also, shares of Iron Mountain have underperformed its industry over the past three months.”
Other research analysts have also recently issued reports about the stock. Berenberg Bank initiated coverage on shares of Iron Mountain in a report on Thursday, September 20th. They set a buy rating and a $52.00 price objective for the company. Barclays reduced their price objective on shares of Iron Mountain from $37.00 to $36.00 and set an equal weight rating for the company in a report on Tuesday, October 30th. ValuEngine upgraded shares of Iron Mountain from a sell rating to a hold rating in a report on Tuesday, November 13th. Stifel Nicolaus cut shares of Iron Mountain from a buy rating to a hold rating and reduced their price objective for the company from $39.00 to $34.00 in a report on Friday, October 26th. Finally, Credit Suisse Group initiated coverage on shares of Iron Mountain in a report on Friday, August 10th. They set an underperform rating and a $25.00 price objective for the company. One analyst has rated the stock with a sell rating, three have issued a hold rating and three have given a buy rating to the company’s stock. The company currently has a consensus rating of Hold and a consensus price target of $37.50.
Iron Mountain (NYSE:IRM) last posted 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. The business had revenue of $1.06 billion during the quarter, compared to analysts’ expectations of $1.05 billion. Iron Mountain had a net margin of 5.49% and a return on equity of 14.71%. As a group, research analysts anticipate that Iron Mountain will post 2.13 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 3rd. Stockholders of record on Monday, December 17th will be issued a dividend of $0.611 per share. This is a boost from Iron Mountain’s previous quarterly dividend of $0.59. This represents a $2.44 dividend on an annualized basis and a dividend yield of 7.30%. The ex-dividend date is Friday, December 14th. Iron Mountain’s dividend payout ratio (DPR) is currently 110.33%.
Hedge funds and other institutional investors have recently modified their holdings of the company. Griffin Asset Management Inc. purchased a new position in Iron Mountain during the third quarter worth about $262,000. Nordea Investment Management AB purchased a new position in Iron Mountain during the third quarter worth about $462,000. Cohen & Steers Inc. boosted its holdings in Iron Mountain by 13.5% during the third quarter. Cohen & Steers Inc. now owns 6,513,831 shares of the financial services provider’s stock worth $224,857,000 after purchasing an additional 775,629 shares during the last quarter. Summit Global Investments boosted its holdings in Iron Mountain by 7.5% during the third quarter. Summit Global Investments now owns 171,230 shares of the financial services provider’s stock worth $5,911,000 after purchasing an additional 11,875 shares during the last quarter. Finally, Virginia National Bank purchased a new position in Iron Mountain during the third quarter worth about $327,000. Hedge funds and other institutional investors own 86.49% of the company’s stock.
Iron Mountain Company Profile
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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