Iron Mountain (IRM) Rating Lowered to Sell at Zacks Investment Research

Iron Mountain (NYSE:IRM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Thursday.

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 analysts have also recently issued reports about the stock. Berenberg Bank started coverage on shares of Iron Mountain in a report on Thursday, September 20th. They set a “buy” rating and a $52.00 target price for the company. Barclays decreased 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 research note on Tuesday, October 30th. ValuEngine raised shares of Iron Mountain from a “sell” rating to a “hold” rating in a research note on Tuesday, November 13th. Stifel Nicolaus lowered shares of Iron Mountain from a “buy” rating to a “hold” rating and decreased their price objective for the stock from $39.00 to $34.00 in a research note on Friday, October 26th. Finally, Bank of America started coverage on shares of Iron Mountain in a research note on Tuesday, November 20th. They issued a “neutral” rating and a $34.00 price objective for the company. Two research 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. The company has a consensus rating of “Hold” and a consensus price target of $36.86.

NYSE:IRM traded up $0.12 during trading hours on Thursday, reaching $34.83. 1,291,047 shares of the company’s stock were exchanged, compared to its average volume of 1,694,525. The stock has a market capitalization of $9.85 billion, a price-to-earnings ratio of 16.35, a PEG ratio of 2.62 and a beta of 0.69. Iron Mountain has a 12 month low of $30.22 and a 12 month high of $37.11. The company has a debt-to-equity ratio of 4.18, a quick ratio of 0.97 and a current ratio of 0.97.

Iron Mountain (NYSE:IRM) last issued its earnings results on Thursday, October 25th. The financial services provider reported $0.28 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.27 by $0.01. The firm 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%. On average, sell-side analysts expect that Iron Mountain will post 2.11 EPS for the current fiscal year.

In other news, Director Jennifer Allerton sold 3,000 shares of the firm’s stock in a transaction on Tuesday, December 18th. The shares were sold at an average price of $33.75, for a total transaction of $101,250.00. Following the transaction, the director now owns 14,081 shares in the company, valued at approximately $475,233.75. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.60% of the stock is currently owned by company insiders.

Institutional investors have recently added to or reduced their stakes in the company. Monument Capital Management bought a new position in Iron Mountain in the 3rd quarter worth $121,000. Columbia Asset Management acquired a new stake in shares of Iron Mountain during the 3rd quarter valued at about $173,000. Qube Research & Technologies Ltd boosted its position in shares of Iron Mountain by 775.9% during the 2nd quarter. Qube Research & Technologies Ltd now owns 5,772 shares of the financial services provider’s stock valued at $202,000 after acquiring an additional 5,113 shares in the last quarter. NTV Asset Management LLC acquired a new stake in shares of Iron Mountain during the 3rd quarter valued at about $224,000. Finally, Clinton Group Inc. acquired a new stake in shares of Iron Mountain during the 3rd quarter valued at about $233,000. Institutional investors and hedge funds own 88.10% 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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