Securian Asset Management Reduces Stake in SBA Communications

Securian Asset Management Inc. has reduced its stake in SBA Communications Corporation (NASDAQ: SBAC) by 1.8% during the second quarter of 2023. According to HoldingsChannel.com, the institutional investor now holds 5,528 shares after selling 100 shares, bringing the total value of its holdings to approximately $1.3 million at the close of the quarter.

Several other institutional investors have also adjusted their positions in SBA Communications recently. Notably, Vanguard Group Inc. increased its holdings by 1.5% in the first quarter, acquiring an additional 268,018 shares, which now totals 17,666,669 shares valued at $3.89 billion. Similarly, Dodge & Cox raised its stake by 15.5%, bringing its total holdings to 8,485,264 shares, worth $1.87 billion after purchasing an additional 1,139,009 shares.

JPMorgan Chase & Co. made a significant adjustment, boosting its holdings by 40.3% to own 5,973,657 shares, valued at $1.31 billion. Diamond Hill Capital Management Inc. also increased its position by 7.3%, now holding 1,996,773 shares worth approximately $439.31 million. Meanwhile, Victory Capital Management Inc. raised its stake by 11.5%, acquiring 1,986,133 shares valued at around $436.97 million. Collectively, institutional investors now own approximately 97.35% of SBA Communications stock.

Analysts Adjust Price Targets for SBA Communications

SBA Communications has recently been evaluated by multiple analysts, resulting in several adjustments to price targets. The Goldman Sachs Group lowered its price target from $250.00 to $220.00 while maintaining a “neutral” rating as of October 1, 2023. Similarly, Bank of America downgraded its rating from “buy” to “neutral,” reducing its price target from $260.00 to $230.00 on August 27, 2023.

Other notable adjustments include UBS Group, which decreased its price target from $285.00 to $275.00, and Morgan Stanley, which lowered its target from $260.00 to $220.00. Citigroup also revised its price target down from $265.00 to $235.00. Currently, two investment analysts have rated SBA Communications as a “Strong Buy,” while seven have assigned a “Buy” rating, and eight have issued a “Hold” rating. According to MarketBeat.com, the consensus rating for SBA Communications is “Moderate Buy,” with a target price of approximately $242.40.

SBA Communications Reports Earnings and Declares Dividend

On August 4, 2023, SBA Communications released its quarterly earnings report, revealing an earnings per share (EPS) of $3.17, surpassing analysts’ expectations of $3.10 by $0.07. The company reported a net margin of 31.19% and a negative return on equity of 16.83%. Revenue for the quarter was $698.98 million, exceeding analyst projections of $670.73 million, and reflecting a 5.8% increase compared to the same quarter last year.

In addition to its financial performance, SBA Communications announced a quarterly dividend of $1.11 per share, which was paid on September 18, 2023, to stockholders who were on record as of August 21, 2023. This dividend translates to an annualized payout of $4.44, representing a yield of 2.3%. The company’s current dividend payout ratio stands at 56.42%.

SBA Communications operates as a leading independent owner and operator of wireless communications infrastructure, encompassing towers, buildings, rooftops, distributed antenna systems (DAS), and small cells. With a portfolio exceeding 39,000 communications sites across the Americas, Africa, and Asia, SBA Communications is listed on NASDAQ under the symbol SBAC.