Florida Retirement System Increases Stake in SBA Communications by 3.3%

The State Board of Administration of Florida Retirement System has increased its investment in SBA Communications Corporation, raising its stake by 3.3% during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission, the Florida Retirement System now holds 107,249 shares in the telecommunications infrastructure company, reflecting a total value of approximately $25.19 million.

This increase in shares follows the purchase of an additional 3,438 shares during the quarter. Other institutional investors have also made significant changes to their positions in SBA Communications, highlighting a growing interest in the company. For instance, CVA Family Office LLC expanded its holdings by an impressive 106.3%, acquiring a total of 130 shares valued at around $31,000 after buying 67 additional shares in the last quarter.

Investment activities have been robust, with firms such as Stone House Investment Management LLC and Geneos Wealth Management Inc. each establishing new stakes in SBA Communications. In particular, Geneos Wealth Management increased its holdings by 105.0%, now owning 164 shares worth $36,000. Similarly, Zions Bancorporation National Association UT and Summit Securities Group LLC also entered the market, each acquiring stakes valued at approximately $47,000 during the first quarter.

As a result, institutional investors and hedge funds now collectively own 97.35% of SBA Communications’ stock.

Analysts React to the Investment Landscape

Several research firms have recently issued reports regarding SBA Communications, indicating a mix of confidence and caution. UBS Group revised its target price on the stock from $285.00 to $275.00 while maintaining a “buy” rating. In contrast, Wells Fargo & Company has lowered its price target from $235.00 to $215.00 and assigned an “equal weight” rating.

Despite these fluctuations, the majority of analysts maintain a positive outlook, with two rating the stock as a Strong Buy, eight giving it a Buy rating, and another eight issuing Hold ratings. Currently, the consensus rating for SBA Communications stands at “Moderate Buy,” with an average price target of $238.06, according to MarketBeat.

Current Stock Performance and Financial Results

On the market, shares of SBA Communications opened at $194.76. The company’s stock has experienced a 50-day simple moving average of $194.60 and a 200-day average of $213.11. The stock has fluctuated between a one-year low of $185.45 and a one-year high of $245.16, contributing to a market capitalization of $20.75 billion.

In its latest earnings report, announced on November 3, 2023, SBA Communications reported earnings per share (EPS) of $3.30, surpassing analysts’ expectations of $3.21 by $0.09. The company achieved a revenue of $732.33 million for the quarter, exceeding analyst estimates of $715.65 million. Compared to the same quarter last year, this marks a 9.7% increase in revenue, although EPS fell slightly from $3.32 in the previous year.

Looking ahead, SBA Communications has provided guidance for fiscal year 2025, forecasting earnings of $12.57 per share.

In addition to these financial results, the company has declared a quarterly dividend of $1.11 per share, scheduled for payment on December 11, 2023. Shareholders of record as of November 13, 2023, will receive this dividend, representing an annualized payout of $4.44 and a yield of 2.3%. The current payout ratio stands at 57.89%.

SBA Communications Corporation is recognized as a leading independent owner and operator of wireless communications infrastructure, including towers and distributed antenna systems. With a portfolio exceeding 39,000 communications sites across the Americas, Africa, and Asia, SBA is a key player in the telecommunications sector, trading on NASDAQ under the symbol SBAC.