AMT Skids Lower After Billion-Dollar Phone Mast Deal

The equity just breached a recent floor at the $215 level

Deputy Editor
Jan 13, 2021 at 10:20 AM
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The shares of American Tower Corp (NYSE:AMT) are lower this morning, last seen down 0.2% to trade at $214.47, amid news that the real estate investment trust (REIT) agreed to buy Spanish telecom company Telefonica's (TEF) European and Latin American mobile phone masts for $9.4 billion. The U.S.-listed shares of TEF, meanwhile, are up 9.8% to trade at $4.88.

It's been a rocky road downward for AMT, which is now off over 21% from its July 29, all-time high of $272. While it looked like the $215 mark would come in as a floor for REIT's December pullback, the equity just breached that level during yesterday's session, and is now set for a second session just below it. 

Nonetheless, option traders haven't been more bullish than in the past year. This is per American Tower stock's 50-day call/put volume ratio of 3.75 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than all other readings from the last 12 months. 

Analysts reflect this optimism, with 10 of the 14 in coverage calling the security a "buy" or better, while the remaining four say "hold." Plus, the 12-month consensus price target of $280.41 is a 30.6% premium to current levels. Should AMT keep sliding under the $215 level, it could spark a round of downgrades and/or price target cuts. 

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