Is Crown Castle International Corp. (REIT) (CCI) Sharp Price Movement Justified?

Director Melone Anthony J. acquired 5,478 shares in Crown Castle International Corp. (REIT) (NYSE:CCI) for $15,502 in transaction occurred on 2018/10/23. After making this transaction, the Director owns a direct stake of 580,613 shares, worth $1,821,020, as per the last closing price. On 2018/10/22 Christy Langenfeld Cynthia K, Director at CCI, purchased 900 shares at an average price of $106.19 per share. The new stake is valued at $2,986,557.

Separately, it had been reported that some other CCI insiders also took part of the insider trading activity. Director, Garrison Robert E Ii had divested 2,451 shares for $25,100 through a trade on 2018/08/29. Following this activity, the insider holds 279,316 shares worth $2,948,497 as of recent close. Wall Street’s most bullish Crown Castle International Corp. (REIT) (NYSE:CCI) analysts are predicting the share price to blow past $123 per share during the next 12 months. The current median share price forecast by them is $119, suggesting that the stock could increase 1.3% in that time frame. The average price target of $114.94 calls for a nearly -2.15% increase in the stock price.

Crown Castle International Corp. (REIT) (CCI) trading activity significantly improved as the volume at ready counter increased to 3,239,399 shares versus 2,288,705 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,506,736 shares. The share price rose 2.15% in recent trade and currently has a stock-market value of $48.75B. The shares finished at $117.47, after trading as low as $113.23 earlier in the session. It hit an intraday high Thursday at $117.53. The stock is now 18.84% above against its bear-market low of $98.85 on April 30, 2018. It has retreated -0.11% since it’s 52-week high of $117.6 reached in December. Now the market price is up 7.96% on the year and up 5.82% YTD.

CCI’s 50 day simple moving average (SMA 50) price is $109.48 and its 200-day simple moving average (SMA 200) price is $108.27. The company’s stock currently has a total float of 413.03M shares. Its weekly volatility is hovering around 2.53% and felt 1.88% volatility in price over a month. On the upside, the share price will test short term resistance at around $118.97. On a downside, the stock is likely to find some support, which begins at $114.6. The failure to get near-term support could push it to $111.73.

It had seen a negative analyst call from MoffettNathanson, which downgraded the stock from Buy to Neutral on December 03. Analysts at Oppenheimer, shed their positive views on October 16 by lowering it fromOutperform to Perform. The stock lost favor of Raymond James analysts who expressed their lack of confidence in it using a downgrade from Outperform to Mkt Perform on June 12.

When looking at valuations, Crown Castle International Corp. (REIT) (CCI) has a pricey P/E of 105.45x as compared to industry average of 47.22x. Moreover, it trades for 72.33 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 3.96x price/book and 9.3x price/sales. Compared to others, Crown Castle International Corp. (REIT) is in a different league with regards to profitability, having net margins of 8.5%. To put some perspective around this, the industry’s average net margin is 35.6%. CCI’s ROE is 3.5%, which is also considerably worse than the industry’s ROE of 14.32%. It’s also very liquid in the near term, with a current ratio of 1. The stock has a debt/capital of 1.34.

Shares of Crown Castle International Corp. (REIT) (CCI) have gained 7.7% since the company’s last earnings report. Over the past 11 fiscal quarters, Crown Castle International Corp. (REIT) (NYSE:CCI) has topped consensus earnings estimates in 0 quarters (0%), missed earnings in 11 quarters (91%), whereas at 0 occasion EPS met analyst expectations. CCI last reported earnings on October 17, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.33 per share, -98.48% change on the same period last year. That was better than consensus for $0.27. Revenue for the recent quarter stood at $1.38 billion, up 29% on last year and above the $1.35 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.37 billion to $1.43 billion, which should be compared with $1.37 billion generated last year. EPS is seen in a range of $0.36 to $0.47, against the $0.32 reported a year ago.