SBA Comms (NASDAQ:SBAC) Stock, Quote.Headers.trade-ideas

SBA Comms

SBA Communications owns and operates almost 40,000 cell towers throughout North America, South America, and Africa. It leases space on its towers to wireless service providers, which install equipment on the towers to support their wireless networks. The company has a very concentrated customer base, with most revenue in each market being generated by just the top few mobile carriers. It owns more than 17,000 towers in the US, which accounted for about 70% of the company's total revenue in 2023. Internationally, SBA's greatest presence is in Brazil, where it operates roughly 10,000 towers. SBA operates as a real estate investment trust.

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These 10 stocks had the biggest drop last week, with McKesson Corporation, BIO-TECHNE Corp, and Warner Bros. Discovery, Inc. being the worst performers.

Warner Bros, Airbnb And Monster Beverage Are Among Top 10 Large Cap Losers Last Week (Aug 4-Aug 10): Are The Others In Your Portfolio?

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Iron Mountain Incorporated (NYSE: IRM) reported second-quarter 2024 adjusted funds from operations (AFFO) per share of $1.08, beating the Zacks Consensus Estimate of $1.06.

Iron Mountain&#39;s Q2 AFFO Beat Estimates, Revenues Rise Y/Y

Earnings Beats

SBA Communications Corporation (NASDAQ: SBAC) reported second-quarter 2024 adjusted funds from operations (AFFO) per share of $3.29, beating the Zacks Consensus Estimate by a whisker. Moreover, the figure reflects a rise of 1.5% from the prior-year quarter.

SBA Communications&#39; Q2 AFFO Beat, Revenues Fall Y/Y

SBA Communications Corporation - Class A Common Stock

SBA Communications Corp

Morgan Stanley analyst Simon Flannery maintains SBA Comms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBAC#NASDAQ">SBAC</a>) with a Overweight and raises the price target from $232 to $252.

Price Target

Morgan Stanley Maintains Overweight on SBA Comms, Raises Price Target to $252

SBA Comms's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SBAC#NYSE">SBAC</a>) short percent of float has risen 6.96% since its last report. The company recently reported that it has 2.19 million shares sold short, which is 2.46% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.21 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>SBA Comms Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725977713_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for SBA Comms has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing SBA Comms's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, SBA Comms's peer group average for short interest as a percentage of float is 3.41%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Peering Into SBA Comms's Recent Short Interest

Deutsche Bank analyst Matthew Niknam maintains SBA Comms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBAC#NASDAQ">SBAC</a>) with a Buy and raises the price target from $230 to $240.

Deutsche Bank Maintains Buy on SBA Comms, Raises Price Target to $240

These ten large-cap stocks were the worst performers in the last week. Are they in your portfolio?
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<li>McKesson Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>) shares decreased 12.06% after reporting worse-than-expected <a href="https://www.benzinga.com//node/40232820" target="_blank" rel="noreferrer noopener">first-quarter FY25 sales results</a>. Analysts revised <a href="https://www.benzinga.com/quote/mck/analyst-ratings" target="_blank" rel="noreferrer noopener">the company&#8217;s price targets</a>.</li>
<li>BIO-TECHNE Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TECH#NASDAQ">TECH</a>) stock 11.71% value last week on worse-than-expected Q4 revenue results.</li>
<li>Warner Bros. Discovery, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBD#NASDAQ">WBD</a>) stock declined 10.62% following weak <a href="https://www.benzinga.com//node/40234107" target="_blank" rel="noreferrer noopener">second-quarter financial results</a>. Several analysts updated their ratings <a href="https://www.benzinga.com//node/40264035" target="_blank" rel="noreferrer noopener">and price targets on the stock</a>.</li>
<li>Charles River Laboratories International, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRL#NYSE">CRL</a>) shares dipped 10.41% on Q2 results and cut its FY24 <a href="https://www.benzinga.com//node/40222523" target="_blank" rel="noreferrer noopener">adjusted outlook</a>. Analysts lowered the <a href="https://www.benzinga.com/quote/crl/analyst-ratings" target="_blank" rel="noreferrer noopener">price target on the stock</a>.</li>
<li>Sarepta Therapeutics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SRPT#NASDAQ">SRPT</a>) stock fell 9.33% on worse-than-expected Q2 sales results. The company issued FY25 net product revenue guidance below estimates, and several analysts <a href="https://www.benzinga.com/quote/srpt/analyst-ratings" target="_blank" rel="noreferrer noopener">cut their price forecasts</a> for the stock.</li>
<li>Monster Beverage Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>) stock plummeted 8.95% after the company reported <a href="https://www.benzinga.com//node/40233200" target="_blank" rel="noreferrer noopener">Q2 financial results</a>. Many analysts <a href="https://www.benzinga.com/quote/mnst/analyst-ratings" target="_blank" rel="noreferrer noopener">cut the price target</a>.</li>
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<li>Airbnb, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ABNB#NASDAQ">ABNB</a>) stock dived 7.01% after the company reported worse-than-expected quarterly EPS results and issued <a href="https://www.benzinga.com//node/40203008" target="_blank" rel="noreferrer noopener">third-quarter revenue guidance below estimates</a>. Many analysts slashed the <a href="https://www.benzinga.com//node/40227192" target="_blank" rel="noreferrer noopener">price target and forecast on the stock</a>.</li>
<li>Advanced Drainage Systems, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMS#NYSE">WMS</a>) stock fell 6.94% <a href="https://www.benzinga.com//node/40246477" target="_blank" rel="noreferrer noopener">following a quarterly earnings miss</a>.</li>
<li>SBA Communications Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBAC#NASDAQ">SBAC</a>) stock fell 6.85% in the last week.</li>
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RBC Capital analyst Jonathan Atkin maintains SBA Comms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBAC#NASDAQ">SBAC</a>) with a Outperform and raises the price target from $235 to $245.

RBC Capital Maintains Outperform on SBA Comms, Raises Price Target to $245

Iron Mountain Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/irm#NYSE">IRM</a>) reported second-quarter 2024 adjusted funds from operations (AFFO) per share of $1.08, beating the Zacks Consensus Estimate of $1.06.
Reflecting positive sentiments, shares of Iron Mountain have gained nearly 5% in the initial hours of the trading session today. The results reflect solid performances in the storage and service segments and the data center business. However, higher interest expenses in the quarter acted as a dampener. The company reaffirmed its outlook for 2024.
Quarterly total revenues of $1.53 billion outpaced the Zacks Consensus Estimate of $1.50 billion.
On a year-over-year basis, AFFO per share and total revenues increased 10.2% and 13%, respectively.
According to William L. Meaney, president and CEO of Iron Mountain, &quot;We continue to execute well on our growth strategy and are pleased to report a very strong second quarter, again resulting in all-time record Revenue and Adjusted EBITDA. We are grateful to our team, who continue to drive toward our Project Matterhorn growth targets, including top-tier growth in AFFO, which enabled us to increase the dividend by 10%. This is in line with our long-term plan to increase the dividend alongside growth in AFFO per share.&quot;
<h3>Behind the Headlines</h3>
Storage rental revenues were $919.7 million in the second quarter, up 10.7% year over year. We had estimated quarterly storage rental revenues to be $910.4 million.
Service revenues increased 16.6% from the prior-year quarter to $614.7 million.
The Global Data Center business reported revenues of $152.7 million in the second quarter, rising 29.4% year over year. Our estimate was pegged at $157 million.
The adjusted EBITDA rose 14.4% year over year to $544.4 million. The adjusted EBITDA margin came at 35.5%, rising 50 basis points year over year.
However, interest expenses flared up 22.4% year over year to $176.5 million in the quarter. We projected the metric to be $158.2 million.
<h3>Balance-Sheet Position</h3>
IRM exited the second quarter with $144.3 million of cash and cash equivalents, down from $191.7 million as of Mar 31, 2024.
<h3>Dividend Update</h3>
Concurrently, IRM announced a quarterly cash dividend of 71.5 cents per share for the third quarter of 2024, indicating an increase of 10% from the prior payout. The dividend will be paid out on Oct 3, 2024, to its shareholders on record as of Sep 16, 2024.
<h3>2024 Guidance</h3>
Iron Mountain reaffirmed its guidance for 2024 and now expects to be toward the upper end of the 2024 guidance range.
It expects AFFO per share of $4.39-$4.51. The Zacks Consensus Estimate for the same is pegged at $4.44, which lies within the company&#39;s guided range.
Revenues are estimated to be $6.00-$6.15 billion, while adjusted EBITDA is anticipated to be $2.175-$2.225 billion.
Iron Mountain currently carries a Zacks Rank #3 (Hold).
<div class="chart_embed">
<h3>Iron Mountain Incorporated Price, Consensus and EPS Surprise</h3>
<img alt="Iron Mountain Incorporated Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/05/1722524455.png" style="height:265px; width:584px" title="" />
Iron Mountain Incorporated price-consensus-eps-surprise-chart | Iron Mountain Incorporated Quote
</div>
<h3>Performance of Other REITs</h3>
American Tower Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/amt#NYSE">AMT</a>) reported second-quarter AFFO per share, attributable to AMT common stockholders, of $2.79, beating the Zacks Consensus Estimate of $2.53. The figure climbed 13.4% year over year.
Results reflect better-than-anticipated revenues, aided by revenue growth across its Property segment. AMT recorded healthy year-over-year organic tenant billings growth of 5.3% and total tenant billings growth of 6.1%. It has also raised its 2024 outlook.
SBA Communications Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sbac#NASDAQ">SBAC</a>) reported second-quarter 2024 AFFO per share of $3.29, beating the Zacks Consensus Estimate by a whisker. Moreover, the figure reflects a rise of 1.5% from the prior-year quarter.
Results reflected a decent improvement in site leasing revenues. It continues to benefit from the addition of sites to its portfolio. However, lower revenues posted by site development hurt the results to some extent. SBAC lowered its 2024 outlook.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
<a href="https://www.zacks.com/stock/news/2314521/iron-mountain-s-irm-q2-affo-beat-estimates-revenues-rise-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2314521">To read this article on Zacks.com click here.</a>

Iron Mountain's Q2 AFFO Beat Estimates, Revenues Rise Y/Y

SBA Communications Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sbac#NASDAQ">SBAC</a>) reported second-quarter 2024 adjusted funds from operations (AFFO) per share of $3.29, beating the Zacks Consensus Estimate by a whisker. Moreover, the figure reflects a rise of 1.5% from the prior-year quarter.
Results reflect a decent improvement in site leasing revenues. It continues to benefit from the addition of sites to its portfolio. However, lower revenues posted by site development hurt the results to some extent. The company lowered its 2024 outlook.
Quarterly total revenues decreased 2.7% year over year to $660.5 million. The figure also missed the Zacks Consensus Estimate of $664.5 million.
Brendan Cavanagh, president and CEO of the company, said, &quot;New business execution in the U.S. continued at a similar pace to the levels we have experienced the last few quarters, and internationally, we saw a pick-up in new leasing activity that will increase the full year revenue contribution from new leases and amendments. During the second quarter, we also continued a balanced approach to capital allocation with a mix of portfolio expansion, stock repurchases, dividends and debt reduction.&quot;
<h3>Quarter in Detail</h3>
Site-leasing revenues increased marginally year over year to $626.5 million. Quarterly Site-leasing revenues consisted of domestic site-leasing revenues of $463.2 million and international site-leasing revenues of $163.3 million. The domestic cash site-leasing revenues came in at $457.4 million, growing 1.6% year over year. International cash site leasing revenues came in at $163.6 million, decreasing 2.9% year over year.
However, site development revenues decreased 35% year over year to $34 million.
The site-leasing operating profit was $512.3 million, marking a marginal increase year over year. Moreover, 98.7% of SBAC&#39;s total operating profit in the quarter came from site leasing.
The overall operating income rose 46.9% to $354.5 million.
The adjusted EBITDA totaled $467.1 million, decreasing 1%, while the adjusted EBITDA margin increased to 71.3% from 70.3% in the prior-year quarter.
<h3>Portfolio Activity</h3>
In the second quarter, SBAC acquired 117 communication sites for a total cash consideration of $26.5 million. The company also built 100 towers during this period. It owned or operated 39,744 communication sites as of Jun 30, 2024, of which 17,461 were in the United States and its territories and 22,283 internationally.
SBA Communications also spent $13.3 million to purchase land and easements and extend lease terms. Total cash capital expenditure was $91.6 million in the reported quarter, of which $78.5 million represented discretionary and $13.1 million was non-discretionary.
Subsequent to the quarter end, SBAC purchased or is under contract to buy 106 communication sites for a total consideration of $49.3 million in cash. It expects to complete the acquisition by the end of the fourth quarter of 2024.
<h3>Cash Flow &amp; Liquidity</h3>
In the second quarter, SBA Communications generated nearly $425.6 million of net cash from operating activities compared with the year-ago quarter&#39;s $486.9 million.
As of Jun 30, 2024, it had $309.4 million in cash and cash equivalents, short-term restricted cash and short-term investments, up from $261.8 million recorded as of Mar 31, 2024. SBAC ended the quarter with a net debt-to-annualized adjusted EBITDA of 6.4X.
As of Jul 29, 2024, the company had $30 million outstanding under the $2 billion revolving credit facility.
In April 2024, SBAC repurchased 0.4 million shares of its Class A common stock for $93.9 million. After this, it had $204.7 million of authorization remaining under its $1 billion stock repurchase plan.
<h3>Dividend Update</h3>
Concurrent with the earnings release, SBAC announced a cash dividend of 98 cents on its Class A common stock. The dividend will be paid out on Sep 18 to shareholders of record as of Aug 22, 2024.
<h3>2024 Guidance Lowered</h3>
SBAC now expects AFFO per share in the range of $13.06-$13.43, down from the prior guided range of $13.09-$13.46. The Zacks Consensus Estimate for the same is currently pegged at $13.20, which is within the guided range.
Site-leasing revenues are now projected to be $2,507-$2,527 million, revised downwards from $2,517-$2,537 million guided earlier. Site-development revenue guidance range is revised downwards to $135 million and $145 million from the previous guidance of $140 million and $160 million.
Further, the adjusted EBITDA has been decreased from $1,889-$1,909 million to $1,876-$1,896 million.
The company currently carries a Zacks Rank #3 (Hold).
<div class="chart_embed">
<h3>SBA Communications Corporation Price, Consensus and EPS Surprise</h3>
<img alt="SBA Communications Corporation Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/9e/1722352352.png" style="height:265px; width:591px" title="" />
SBA Communications Corporation price-consensus-eps-surprise-chart | SBA Communications Corporation Quote
</div>
<h3>Performance of Other REITs</h3>
Cousins Properties&#39; (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cuz#NYSE">CUZ</a>) second-quarter 2024 FFO per share of 68 cents beat the Zacks Consensus Estimate of 66 cents. The figure remained unchanged on a year-over-year basis.
Results reflect decent leasing activity and better-than-anticipated revenues. However, rental property operating and interest expenses increased year over year. CUZ also raised its 2024 outlook for FFO per share.
Healthpeak Properties, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/doc#NYSE">DOC</a>) reported second-quarter 2024 FFO as adjusted per share of 45 cents, beating the Zacks Consensus Estimate by a penny. The reported figure remained unchanged from the prior-year quarter.
Results reflect better-than-anticipated revenues. Moreover, growth in total merger-combined same-store cash (adjusted) net operating income was witnessed across the portfolio. DOC also revised its 2024 outlook.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
<a href="https://www.zacks.com/stock/news/2312267/sba-communications-sbac-q2-affo-beat-revenues-fall-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2312267">To read this article on Zacks.com click here.</a>

SBA Communications' Q2 AFFO Beat, Revenues Fall Y/Y

Keybanc analyst Brandon Nispel maintains SBA Comms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBAC#NASDAQ">SBAC</a>) with a Overweight and raises the price target from $227 to $230.

Keybanc Maintains Overweight on SBA Comms, Raises Price Target to $230

TD Cowen analyst Michael Elias maintains SBA Comms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBAC#NASDAQ">SBAC</a>) with a Buy and lowers the price target from $253 to $251.

TD Cowen Maintains Buy on SBA Comms, Lowers Price Target to $251

General

SBA Communications shares are trading lower following a Q2 revenue miss.

Barclays analyst Tim Long maintains SBA Comms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBAC#NASDAQ">SBAC</a>) with a Overweight and lowers the price target from $240 to $236.

Barclays Maintains Overweight on SBA Comms, Lowers Price Target to $236

BMO Capital analyst Ari Klein maintains SBA Comms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBAC#NASDAQ">SBAC</a>) with a Outperform and lowers the price target from $250 to $245.

BMO Capital Maintains Outperform on SBA Comms, Lowers Price Target to $245

SBA Comms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBAC#NASDAQ">SBAC</a>) reported quarterly earnings of $3.29 per share which beat the analyst consensus estimate of $3.28 by 0.3 percent. The company reported quarterly sales of $660.50 million which missed the analyst consensus estimate of $665.12 million by 0.70 percent. This is a 2.65 percent decrease over sales of $678.50 million the same period last year.

Earnings Misses

SBA Comms Q2 2024 FFO $3.29 Beats $3.28 Estimate, Sales $660.50M Miss $665.12M Estimate

Wells Fargo analyst Eric Luebchow downgrades SBA Comms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBAC#NASDAQ">SBAC</a>) from Overweight to Equal-Weight and lowers the price target from $230 to $220.

Downgrades

Wells Fargo Downgrades SBA Comms to Equal-Weight, Lowers Price Target to $220

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Shares of REITs are trading higher following softer-than-expected June CPI data, which could raise expectations of rate cuts.

SBA Comms's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SBAC#NYSE">SBAC</a>) short percent of float has risen 12.55% since its last report. The company recently reported that it has 2.32 million shares sold short, which is 2.6% of all regular shares that are available for trading. Based on its trading volume, it would take traders 3.02 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>SBA Comms Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1720628115_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for SBA Comms has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing SBA Comms's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, SBA Comms's peer group average for short interest as a percentage of float is 4.28%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

How Is The Market Feeling About SBA Comms?

Goldman Sachs analyst Brett Feldman initiates coverage on SBA Comms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBAC#NASDAQ">SBAC</a>) with a Neutral rating and announces Price Target of $212.

Initiation

Goldman Sachs Initiates Coverage On SBA Comms with Neutral Rating, Announces Price Target of $212

Residential house prices continued their upward trend, reaching new all-time highs in April 2024, yet the pace of growth has slowed, potentially suggesting<a href="https://www.benzinga.com/topic/housing-market"> early signs of normalization.</a>
The resilience of house prices was broad-based across the country, with all 20 of the largest U.S. metropolitan areas showing positive monthly increases. San Diego led the annual gains with double-digit growth.
<h3 class="wp-block-heading">April&#8217;s House Price Index: Key Highlights</h3>
<ul>
<li>U.S. house prices rose 0.2% month-over-month in April, up from a revised flat reading in March, according to the Federal Housing Finance Agency (FHFA) seasonally adjusted monthly House Price Index. This increase fell short of economist expectations of a 0.3% growth, as reported by Econoday.</li>
<li>House prices rose 6.3% from April 2023 to April 2024, slowing from the 6.7% year-over-year growth recorded in March 2024.</li>
<li>For the nine census divisions, seasonally adjusted monthly price changes from March 2024 to April 2024 ranged from -0.2% in the West South Central and Middle Atlantic divisions to +1.4% in the East South Central division. The 12-month changes were all positive, ranging from +3.0% in the West South Central division to +8.5% in the New England and Middle Atlantic divisions.</li>
</ul>
<h3 class="wp-block-heading">April&#8217;s S&amp;P CoreLogic Case-Shiller Index: Key Highlights</h3>
<ul>
<li>The 20-city S&amp;P CoreLogic Case-Shiller U.S. National Home Price Index reported a 7.2% seasonally unadjusted annual gain for April, down from a 7.4% annual gain in the previous month. This marks the first year-over-year deceleration in U.S. residential real estate prices, though it exceeded forecasts of 7% growth.</li>
<li>On a month-over-month basis, the 20-city index rose by 1.4%, slightly decelerating from March&#8217;s 1.6% increase.</li>
<li>San Diego continued to report the highest annual gain among the 20 cities in April, with a 10.3% increase, followed by New York and Chicago, with increases of 9.4% and 8.7%, respectively. Portland recorded the smallest year-over-year growth, with a 1.7% annual increase in April.</li>
</ul>
<h3 class="wp-block-heading">Economist Takes</h3>
"For the second consecutive month, we've seen our National Index jump at least 1% over its previous all-time high," Brian D. Luke, head of commodities, real &amp; digital assets at S&amp;P Dow Jones indices, said. 
Luke stated that 2024 was closely mirroring the strong start observed in the previous year. He mentioned that March and April had posted the largest rise, before a slowdown occurred in the summer and fall.
&#8220;Heading into summer, the market is at an all-time high, once again testing its resilience against the historically more active time of the year,&#8221; he added.
Luke also highlighted that 13 markets were currently at all-time highs, with San Diego leading once again, topping annual returns for the last six months.
A more cautious outlook came from Dr. Anju Vajja, deputy director for FHFA's Division of Research and Statistics, who noted that despite the rise in April, the appreciation rate slowed amid a slight rise in both mortgage rates and housing inventory. 
&#8220;The housing market in general began to show some signs of normalization,&#8221; she added.
<h3 class="wp-block-heading">Market Reactions</h3>
The housing data released Tuesday failed to trigger a positive reaction on real estate stocks, as hawkish Fed remarks pushed Treasury yields slightly higher. 
The&nbsp;Real Estate&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) was 0.9% lower at 09:05 a.m. in New York, eyeing its worst session in nearly a month. 
Both the Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) and the iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>) similarly fell 0.8%. 
The VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) showed more contained losses, down 0.3%. 
SBA Communications Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBAC#NASDAQ">SBAC</a>) and Weyerhaeuser Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WY#NYSE">WY</a>) were the laggards within the XLRE ETF, both down 1.7%. 
The 30-year Treasury yield, a key benchmark for mortgage rates, rose by 2 basis points to 4.38%, sending the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) down by 0.2%. 
Read now:<a href="https://www.benzinga.com/topic/real-estate-investing"> Popular Real Estate Investment Offerings – Start Generating Passive Income Through Real Estate</a>
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XLRE

Home Prices Reach New Record Highs, Yet 'Signs Of Normalization' Emerge

SBA Communications&#39; (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sbac#NASDAQ">SBAC</a>) extensive and geographically diverse communication real estate portfolio is well-poised to benefit from wireless carriers&#39; high capital spending for network expansion amid accelerated 5G network deployment efforts. Portfolio expansion moves, backed by a solid balance sheet position, augur well. However, notable customer concentration and high interest rates raise concerns.
<h3>What&#39;s Aiding SBAC?</h3>
The advancement in mobile technology, such as 4G and 5G networks, and the proliferation of bandwidth-intensive applications have driven the growth in mobile data usage globally.
This has resulted in wireless service providers and carriers expanding their networks and deploying additional equipment for existing networks to boost network coverage and capacity to meet the rising consumer demand, poising tower real estate investment trusts like SBA Communications well for growth. 
The company has a resilient and stable site-leasing business model and generates most of its revenues from long-term (typically five to 10 years) tower leases that have built-in rent escalators. This assures steady revenues over the long term. 
Moreover, with wireless service providers continuing to lease additional antenna space on the company&#39;s towers amid the increase in network use, data transfer, network expansion and network coverage requirements, its site-leasing revenue growth is likely to remain robust in the upcoming period. 
SBA Communications&#39; portfolio expansion efforts into select international markets with high growth characteristics position it well to take advantage of the secular trends in mobile data usage and wireless spending growth across the globe. In the first quarter of 2024, the company acquired 11 communication sites. In the first quarter of 2024, it also built 76 towers. 
Subsequent to Mar 31, 2024, SBA Communications purchased or is under contract to buy 271 communication sites for a total cash consideration of $84.5 million. It expects to conclude these buyouts by the end of the third quarter of 2024. 
On the balance sheet front, SBA Communications exited the first quarter of 2024 with $261.8 million in cash and cash equivalents, short-term restricted cash and short-term investments. As of Apr 29, 2024, the company had $195 million outstanding under its $2.0 billion revolving credit facility. 
Further, SBAC&#39;s current cash flow growth is projected at 13.13 % compared with the negative 5.32% estimated for the industry. With ample financial flexibility, SBAC seems well-poised to capitalize on long-term growth opportunities.
<h3>What&#39;s Hurting SBAC?</h3>
The company has a high customer concentration, with T-Mobile (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tmus#NASDAQ">TMUS</a>), AT&amp;T (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/t#NYSE">T</a>) and Verizon (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vz#NYSE">VZ</a>) accounting for the majority of its domestic site-leasing revenues. In the first quarter of 2024, T-Mobile, AT&amp;T and Verizon accounted for 38.8%, 29.5% and 20%, respectively, of SBAC&#39;s domestic site-leasing revenues. 
Therefore, the loss of any of these customers, consolidation among them or a reduction in network spending might hurt the company&#39;s top line significantly. Specifically, the churn arising from the Sprint-related decommissioning is likely to weigh on its performance in the near term. 
SBA Communications has a substantially leveraged balance sheet, with $12.4 billion of total debt and net debt to the annualized adjusted EBITDA leverage of 6.5X as of the end of the first quarter of 2024. The high amount of debt is likely to keep SBA Communications&#39; financial obligations elevated. Moreover, its debt-to-capital ratio is higher than the industry average. In addition, a high interest rate environment is likely to result in high borrowing costs for the company, affecting its ability to purchase or develop real estate. 
Analysts seem a bit bearish on this Zacks Rank #3 (Hold) company, with the Zacks Consensus Estimate for SBAC&#39;s 2024 funds from operations per share moving marginally south in the past two months to $13.22. 
The company&#39;s shares have declined 3.6% in the past month compared with the industry&#39;s fall of 0.5%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/89/69226.jpg?v=1742193549" /> 
Image Source: Zacks Investment Research
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) &mdash; a widely used metric to gauge the performance of REITs.
<a href="https://www.zacks.com/stock/news/2291017/is-it-wise-to-retain-sba-communications-sbac-stock-for-now?cid=CS-BENZ-FT-analyst_blog|zer_report_update-2291017">To read this article on Zacks.com click here.</a>

TMUS

Is It Wise to Retain SBA Communications Stock for Now?

Barclays analyst Tim Long maintains SBA Comms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBAC#NASDAQ">SBAC</a>) with a Overweight and lowers the price target from $241 to $240.

Barclays Maintains Overweight on SBA Comms, Lowers Price Target to $240

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Morgan Stanley analyst Simon Flannery maintained a Buy rating on SBA Communications (SBAC – Research Report) today and set a price target of $252.0...

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