Iron Mountain Inc: Market-Trumping Stock at Record Levels; Pays 6.5% Dividend

 

Iron Mountain Stock Has Raised its Annual Dividend for 9 Years

 

If knowledge is power, Iron Mountain Inc (NYSE:IRM) helps hundreds of thousands of customers stay at the top of their game. And thanks to the company’s diversified business model, unmatched customer base, and 98% customer retention rate, it has been able to provide investors with strong share-price growth and a frothy dividend, which currently stands at 6.5%.

 

Iron Mountain is the global leader in storage and information management services. Trusted by more than 225,000 organizations around the world, the company stores and protects billions of valued assets, including critical business information, highly sensitive data, and cultural artifacts. It has a real estate network of nearly 93 million square feet across approximately 1,450 facilities in 56 countries. (Source: “Investor Presentation: Q1 2021,” Iron Mountain Inc, last accessed April 20, 2021.)

 

Iron Mountain is an excellent company that not only weathered the coronavirus pandemic, but came out the other side stronger, with an even brighter future.

 

IRM stock has been on a tear over the last 12 months. Trading at record levels, Iron Mountain stock is up 52.7% year-over-year and 30% year-to-date. By comparison, the S&P 500 is only up 45% year-over-year and 11% year-to-date.

 

Despite the massive share-price gains, IRM stock continues to pay a frothy, high-yield dividend of 6.5%, or $2.47 per share (annualized).

 

 

Iron Mountain makes a point of saying on its investor relations web site that it has raised its annual dividends for the last nine years, which suggests that management wants to take that to a record 10 years.

 

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This High-Yield Stock Has A Dividend Made Of Iron

Iron Mountain (IRM) is one of the highest-yielding stocks in the S&P 500 and offers investors compelling total return potential. It is structured as a real estate investment trust (or REIT) and is undergoing a transition from a physical data storage company into a digital data storage company.

Currently, the market is pricing it as a struggling company with a declining core business, but we believe that the market is missing the growth story in its investments in data storage, government contracts, and international expansion. While investors wait for market sentiment to turn, they get paid a fully-covered 7.8% dividend that is expected to grow at an average rate of 4% per year.

Recent Earnings Report

In its second quarter, Iron Mountain reported revenue growth of 0.6% despite foreign currency exchange headwinds (underlying organic growth rate was 0.7%). However, expenses outpaced revenue growth by increasing 1.7%, led by cost of sales growth of 3%. Operating income and adjusted earnings per share declined 4.1% and 23.4%, respectively, year over year. On the positive side, EBITDA margins expanded from Q1, improving to 32.9% from 30.8% in Q1 while organic storage rental revenue growth was 2.4% on total storage volume growth (excluding acquisitions) of 2%.

The company needs to continue significantly improving its EBITDA margin in order to meet guidance and get back on track to meet its ambitious growth and deleveraging goals. Something that will likely help them is that a brand-new data center just opened, and several others will be opening in the near future.

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Notable Analyst Upgrades and Downgrades for Week of July 29, 2019

Upgrades:

Anheuser Busch Inbev (NYSE:BUD) was upgraded by analysts at Bank of America from a “neutral” rating to a “buy” rating in a note issued to investors on Monday, The Fly reports. The analysts noted that the move was a valuation call.

Other equities research analysts have also issued research reports about the stock. Zacks Investment Research lowered shares of Glu Mobile from a “buy” rating to a “hold” rating in a report on Tuesday, April 9th. Barclays set a €16.80 ($19.53) price objective on shares of Deutsche Telekom and gave the stock a “neutral” rating in a report on Tuesday, April 2nd. ValuEngine lowered shares of Vereit from a “buy” rating to a “hold” rating in a report on Friday, July 19th. Finally, Argus lowered shares of Lions Gate Entertainment from a “buy” rating to a “hold” rating in a report on Thursday, May 30th. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and three have given a buy rating to the company. The stock has a consensus rating of “Hold” and an average price target of $83.77. Read more …

Gilead Sciences (NASDAQ:GILD) was upgraded by research analysts at Royal Bank of Canada from an “outperform” rating to a “top pick” rating in a report issued on Monday, The Fly reports.

A number of other equities analysts have also commented on GILD. Mizuho set a $88.00 price objective on Gilead Sciences and gave the stock a “buy” rating in a research note on Monday, July 15th. Cowen set a $150.00 price target on Tesla and gave the company a “sell” rating in a research note on Friday, May 3rd. BMO Capital Markets set a $76.00 price target on Gilead Sciences and gave the company a “buy” rating in a research note on Monday, July 15th. BidaskClub upgraded Zai Lab from a “sell” rating to a “hold” rating in a research note on Wednesday, June 5th. Finally, ValuEngine lowered Intersect ENT from a “buy” rating to a “hold” rating in a research note on Monday, July 8th. Two research analysts have rated the stock with a sell rating, six have assigned a hold rating, seventeen have assigned a buy rating and one has issued a strong buy rating to the company. The company has an average rating of “Buy” and an average target price of $81.09. Read more …

National-Oilwell Varco (NYSE:NOV) was upgraded by research analysts at Citigroup from a “neutral” rating to a “buy” rating in a research note issued on Wednesday, The Fly reports.

NOV has been the topic of a number of other reports. Johnson Rice lowered National-Oilwell Varco from a “buy” rating to a “hold” rating and set a $25.00 target price on the stock. in a report on Monday, July 15th. Bank of America reaffirmed an “underperform” rating and set a $1.25 target price (down from $4.50) on shares of Superior Energy Services in a report on Tuesday, June 25th. Susquehanna Bancshares set a $23.00 target price on National-Oilwell Varco and gave the stock a “hold” rating in a report on Friday, July 19th. Raymond James reaffirmed an “average” rating and set a $23.00 target price on shares of in a report on Monday, April 15th. Finally, TheStreet lowered Weibo from a “b-” rating to a “c+” rating in a report on Friday, May 31st. Six research analysts have rated the stock with a sell rating, fifteen have issued a hold rating and eleven have assigned a buy rating to the stock. The company presently has an average rating of “Hold” and an average target price of $35.36. Read more …

Bank of America upgraded shares of Dominion Energy (NYSE:D) from an underperform rating to a neutral rating in a research note issued to investors on Thursday, June 13th, 24/7 WallStreet reports. Bank of America currently has $80.00 price target on the utilities provider’s stock, up from their previous price target of $79.00. The analysts noted that the move was a valuation call.

Several other equities analysts also recently weighed in on D. TheStreet downgraded Dominion Energy from a b rating to a c+ rating in a research report on Friday, May 3rd. Macquarie downgraded Dominion Energy from an outperform rating to a neutral rating in a research report on Monday, March 18th. They noted that the move was a valuation call. Zacks Investment Research raised Dominion Energy from a hold rating to a buy rating and set a $87.00 target price on the stock in a report on Monday, April 8th. ValuEngine cut Dominion Energy from a buy rating to a hold rating in a report on Wednesday, June 12th. Finally, Credit Suisse Group initiated coverage on Dominion Energy in a report on Friday, April 12th. They issued a neutral rating and a $78.00 target price on the stock. One equities research analyst has rated the stock with a sell rating, eleven have assigned a hold rating and four have issued a buy rating to the stock. The company currently has an average rating of Hold and an average price target of $85.54. Read more …

Notable Analyst Upgrades and Downgrades for Week of July 8, 2019

Upgrades:

Johnson Controls International (NYSE:JCI) was upgraded by stock analysts at JPMorgan Chase & Co. from an “underweight” rating to a “neutral” rating in a note issued to investors on Monday, The Fly reports.

A number of other research analysts also recently issued reports on JCI. Wells Fargo & Co upgraded Johnson Controls International from a “market perform” rating to an “outperform” rating and set a $42.00 price objective for the company in a research note on Monday, March 18th. Zacks Investment Research raised Johnson Controls International from a “strong sell” rating to a “buy” rating and set a $41.00 price objective on the stock in a report on Tuesday, March 19th. TheStreet raised Johnson Controls International from a “c+” rating to a “b-” rating in a report on Thursday, May 9th. Credit Suisse Group initiated coverage on Johnson Controls International in a report on Monday, May 13th. They set a “neutral” rating and a $42.00 price objective on the stock. Finally, Citigroup initiated coverage on Johnson Controls International in a report on Wednesday, June 5th. They set a “buy” rating and a $45.00 price objective on the stock. One analyst has rated the stock with a sell rating, six have given a hold rating and seven have given a buy rating to the stock. Johnson Controls International currently has a consensus rating of “Hold” and an average target price of $39.64. Read more …

Comcast (NASDAQ:CMCSA) was upgraded by equities research analysts at Goldman Sachs Group from a “neutral” rating to a “buy” rating in a research note issued on Wednesday, The Fly reports. The firm presently has a $54.00 price objective on the cable giant’s stock, up from their previous price objective of $44.00. Goldman Sachs Group’s target price would indicate a potential upside of 23.61% from the company’s current price.

Several other equities research analysts also recently weighed in on CMCSA. BidaskClub downgraded Comcast from a “buy” rating to a “hold” rating in a research report on Friday, June 28th. Macquarie assumed coverage on Comcast in a research report on Wednesday, June 19th. They issued a “buy” rating and a $50.00 target price for the company. Morgan Stanley upped their target price on Comcast from $46.00 to $48.00 and gave the stock an “overweight” rating in a research report on Friday, April 26th. Pivotal Research reaffirmed a “buy” rating and issued a $54.00 target price on shares of Comcast in a research report on Wednesday, June 26th. Finally, Raymond James downgraded Comcast from a “strong-buy” rating to an “outperform” rating and decreased their target price for the stock from $25.00 to $21.00 in a research report on Friday, June 14th. Seven investment analysts have rated the stock with a hold rating, eighteen have assigned a buy rating and one has issued a strong buy rating to the company. The stock currently has a consensus rating of “Buy” and an average price target of $44.92. Read more …

Freeport-McMoRan (NYSE:FCX) was upgraded by investment analysts at Deutsche Bank from a “hold” rating to a “buy” rating in a note issued to investors on Wednesday, Marketbeat.com reports. The firm presently has a $13.50 price objective on the natural resource company’s stock, up from their prior price objective of $12.50. Deutsche Bank’s price objective would suggest a potential upside of 21.62% from the company’s current price.

Several other brokerages have also weighed in on FCX. BMO Capital Markets set a $32.00 price objective on Axalta Coating Systems and gave the company a “hold” rating in a report on Friday, April 26th. Barclays set a $192.00 price objective on Tesla and gave the company a “sell” rating in a report on Tuesday, April 9th. JPMorgan Chase & Co. initiated coverage on Pinduoduo in a report on Tuesday. They issued an “underweight” rating and a $20.48 price objective for the company. Zacks Investment Research lowered Hollysys Automation Technologies from a “hold” rating to a “sell” rating in a report on Thursday, April 11th. Finally, ValuEngine lowered Intersect ENT from a “buy” rating to a “hold” rating in a report on Monday, June 3rd. Two investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and four have assigned a buy rating to the company’s stock. The company has an average rating of “Hold” and an average price target of $14.71. Read more …

Altria Group (NYSE:MO) was upgraded by analysts at Goldman Sachs Group from a “neutral” rating to a “buy” rating in a research note issued on Thursday, The Fly reports.

Other equities research analysts have also issued reports about the stock. ValuEngine raised shares of USINAS SIDERURG/S from a “sell” rating to a “hold” rating in a report on Wednesday, May 29th. Citigroup set a $221.00 price objective on shares of 3M and gave the company a “buy” rating in a report on Friday, April 26th. TheStreet lowered shares of 22nd Century Group from a “c-” rating to a “d+” rating in a report on Friday, March 29th. Zacks Investment Research lowered shares of Wix.Com from a “hold” rating to a “sell” rating in a report on Monday, April 8th. Finally, Morgan Stanley cut their price objective on shares of Wells Fargo & Co from $55.00 to $51.00 and set an “equal weight” rating for the company in a report on Monday, April 15th. Three equities research analysts have rated the stock with a sell rating, four have given a hold rating and eight have given a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus price target of $61.91. Read more …

Notable Analyst Upgrades and Downgrades for Week of October 22, 2018

Upgrades:

Intel (NASDAQ:INTC) was upgraded by equities researchers at Nomura from a “neutral” rating to a “buy” rating in a note issued to investors on Monday, Marketbeat.com reports. The firm presently has a $50.00 price target on the chip maker’s stock. Nomura’s target price would suggest a potential upside of 12.36% from the company’s previous close. Several other equities research analysts have also recently weighed in on INTC. Sanford C. Bernstein cut shares of Intel from a “market perform” rating to an “underperform” rating and lowered their price target for the stock from $54.00 to $42.00 in a research report on Tuesday, June 26th. Benchmark initiated coverage on shares of Intel in a research report on Tuesday, June 26th. They issued a “hold” rating for the company. ValuEngine cut shares of Intel from a “buy” rating to a “hold” rating in a research report on Tuesday, June 26th. Zacks Investment Research raised shares of Intel from a “hold” rating to a “buy” rating and set a $57.00 target price for the company in a research report on Wednesday, June 27th. Finally, Goldman Sachs Group reissued a “neutral” rating and set a $53.00 target price on shares of Intel in a research report on Wednesday, June 27th. Six equities research analysts have rated the stock with a sell rating, sixteen have given a hold rating and twenty-one have issued a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average price target of $54.89. Read more …

Raymond James upgraded shares of Occidental Petroleum (NYSE:OXY) from an outperform rating to a strong-buy rating in a research report sent to investors on Monday, MarketBeat Ratings reports. The analysts noted that the move was a valuation call. Other analysts have also recently issued reports about the stock. Mizuho reaffirmed a buy rating on shares of Occidental Petroleum in a research note on Tuesday, July 24th. JPMorgan Chase & Co. decreased their price target on Occidental Petroleum from $94.00 to $90.00 and set a neutral rating on the stock in a research report on Friday, August 10th. Mitsubishi UFJ Financial Group decreased their price target on Occidental Petroleum to $92.00 and set a neutral rating on the stock in a research report on Tuesday, October 16th. Piper Jaffray Companies assumed coverage on Occidental Petroleum in a research report on Friday, September 28th. They set an overweight rating on the stock. Finally, National Alliance Securities upgraded Occidental Petroleum from a hold rating to a buy rating in a research report on Monday, August 13th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating, fourteen have issued a buy rating and one has assigned a strong buy rating to the stock. Occidental Petroleum has an average rating of Buy and an average target price of $84.06. Read more …

VF (NYSE:VFC) was upgraded by research analysts at Wedbush from a “neutral” rating to an “outperform” rating in a research report issued to clients and investors on Tuesday, The Fly reports. The analysts noted that the move was a valuation call. VFC has been the topic of several other research reports. Royal Bank of Canada reiterated a “buy” rating and issued a $105.00 price target on shares of VF in a research note on Thursday, July 26th. Bank of America upgraded VF from an “underperform” rating to a “buy” rating and set a $96.00 price target on the stock in a research note on Friday, July 13th. Goldman Sachs Group initiated coverage on VF in a research note on Monday, June 25th. They issued a “buy” rating and a $96.00 price target on the stock. Buckingham Research cut their price target on VF from $89.00 to $86.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 17th. Finally, JPMorgan Chase & Co. upgraded VF from a “neutral” rating to an “overweight” rating and set a $78.00 price target on the stock in a research note on Monday, July 16th. Eight analysts have rated the stock with a hold rating and eighteen have assigned a buy rating to the stock. The stock currently has a consensus rating of “Buy” and a consensus target price of $94.71. Read more …

Goldman Sachs Group upgraded shares of Lockheed Martin (NYSE:LMT) from a neutral rating to a conviction-buy rating in a report issued on Wednesday morning, Marketbeat reports. The brokerage currently has $394.00 target price on the aerospace company’s stock, up from their previous target price of $391.00. Other analysts have also recently issued research reports about the company. Berenberg Bank raised Lockheed Martin from a hold rating to a buy rating in a report on Thursday, July 26th. Bank of America raised their price target on Lockheed Martin from $400.00 to $412.00 and gave the company a buy rating in a report on Wednesday, July 25th. Stifel Nicolaus lowered their price target on Lockheed Martin from $400.00 to $370.00 and set a buy rating on the stock in a report on Wednesday, July 25th. Zacks Investment Research upgraded Lockheed Martin from a hold rating to a buy rating and set a $343.00 price objective on the stock in a research report on Wednesday, July 11th. Finally, UBS Group began coverage on Lockheed Martin in a research report on Wednesday, August 15th. They set a buy rating and a $400.00 price objective on the stock. Nine equities research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the company. The stock presently has a consensus rating of Buy and an average target price of $376.49. Read more …