Iron Mountain (IRM) Downgraded to “Sell” at Zacks Investment Research

Zacks Investment Research downgraded shares of Iron Mountain (NYSE:IRM) from a hold rating to a sell rating in a research report sent to investors 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 equities analysts have also recently issued reports about the company. Berenberg Bank initiated coverage on Iron Mountain in a research note on Thursday, September 20th. They set a buy rating and a $52.00 target price for the company. Barclays reduced their target price on Iron Mountain from $37.00 to $36.00 and set an equal weight rating for the company in a research note on Tuesday, October 30th. Stifel Nicolaus lowered Iron Mountain from a buy rating to a hold rating and dropped their price target for the company from $39.00 to $34.00 in a research report on Friday, October 26th. ValuEngine raised Iron Mountain from a sell rating to a hold rating in a research report on Wednesday, October 24th. Finally, Bank of America started coverage on Iron Mountain in a research report on Tuesday, November 20th. They set a neutral rating and a $34.00 price target on the stock. Two analysts have rated the stock with a sell rating, four have issued a hold rating and two have issued a buy rating to the company’s stock. Iron Mountain has an average rating of Hold and a consensus price target of $36.86.

Shares of Iron Mountain stock traded up $0.12 on Thursday, hitting $34.83. 1,291,000 shares of the company’s stock traded hands, compared to its average volume of 1,694,525. The stock has a market cap of $9.85 billion, a P/E ratio of 16.35, a price-to-earnings-growth ratio of 2.62 and a beta of 0.69. 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.

Iron Mountain (NYSE:IRM) last released its earnings results on Thursday, October 25th. The financial services provider reported $0.28 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.27 by $0.01. The company had revenue of $1.06 billion during the quarter, compared to analysts’ expectations of $1.05 billion. Iron Mountain had a return on equity of 14.71% and a net margin of 5.49%. As a group, equities analysts predict that Iron Mountain will post 2.11 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Thursday, January 3rd. Investors of record on Monday, December 17th were given a dividend of $0.611 per share. This is a positive change from Iron Mountain’s previous quarterly dividend of $0.59. This represents a $2.44 annualized dividend and a dividend yield of 7.02%. The ex-dividend date was Friday, December 14th. Iron Mountain’s dividend payout ratio is currently 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 transaction of $101,250.00. Following the sale, 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 filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 1.60% of the company’s stock.

A number of hedge funds and other institutional investors have recently modified their holdings of IRM. FMR LLC increased its position in Iron Mountain by 20.0% in the second quarter. FMR LLC now owns 46,323 shares of the financial services provider’s stock worth $1,622,000 after buying an additional 7,725 shares during the period. Cambridge Investment Research Advisors Inc. increased its position in Iron Mountain by 6.4% in the second quarter. Cambridge Investment Research Advisors Inc. now owns 27,085 shares of the financial services provider’s stock worth $948,000 after buying an additional 1,620 shares during the period. Korea Investment CORP acquired a new stake in Iron Mountain in the second quarter worth $3,687,000. Renaissance Technologies LLC acquired a new stake in Iron Mountain in the second quarter worth $245,000. Finally, Oregon Public Employees Retirement Fund increased its position in Iron Mountain by 6.8% in the second quarter. Oregon Public Employees Retirement Fund now owns 30,768 shares of the financial services provider’s stock worth $1,077,000 after buying an additional 1,952 shares during the period. 88.10% of the stock is currently owned by hedge funds and other institutional investors.

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.

Recommended Story: Diversification in Your Portfolio

Get a free copy of the Zacks research report on Iron Mountain (IRM)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Iron Mountain (NYSE:IRM)

Receive News & Ratings for Iron Mountain Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Iron Mountain and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply