Valued at a market cap of $44.9 billion, Crown Castle Inc. (CCI) operates and leases shared communications infrastructure. Based in Houston, Texas, the company operates and leases more than 40,000 cell towers and approximately 90,000 route miles of fiber supporting small cells and fiber solutions across every major U.S. market.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks, and Crown Castle fits this description perfectly. The REIT has a nationwide portfolio of communications infrastructure that connects cities and communities to essential data, technology, and wireless services.
The provider of shared communications dipped 14.6% from its 52-week high of $120.92. Over the past three months, CCI has gained 6.3%, outpacing the broader Dow Jones Industrials Average's ($DOWI) 5.3% decrease.
In the long term, CCI climbed 13.7% on a YTD basis, exceeding DOWI’s 2.5% decline. However, over the past 52 weeks, Castle Crown shares have returned 2.8%, lagging behind the Dow Jones, which has improved nearly 6.6%.
Despite recent fluctuations, CCI has been trading below its 50-day moving average since October last year. Also, the stock has remained below its 200-day moving average since November last year.
Despite reporting weaker-than-expected Q4 2024 AFFO per share of $1.80 on Mar. 13, CCI shares climbed 8.6% the next day. The strong market reaction was driven by the announcement of a $8.5 billion deal to sell its small cells and fiber solutions business, with EQT Active Core Infrastructure acquiring the small cells unit and Zayo Group Holdings buying the fiber business, each for $4.3 billion. Additionally, the company plans a $3 billion share repurchase program and intends to use the proceeds for debt repayment.
Nevertheless, compared to CCI, rival American Tower Corporation (AMT) has outperformed. Shares of AMT have gained 5.9% in the last 52 weeks and saw a rise of 15% on a YTD basis.
Despite Crown Castle’s underperformance relative to the broader market over the past year, analysts are moderately optimistic about its prospects. CCI has a consensus "Moderate Buy" rating from 18 analysts, and, as of writing, it is slightly trading below the mean price target of $104.76.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
