When a senior figure at a public company buys stock it triggers a disclosure to the stock market. This is often a bullish trading indicator as top insiders generally only buy company stock for one reason – they believe the share price is set to rise.
Here, we are going to highlight insider buying at Crown Castle International Corp (CCI:US) Crown Castle International is a real estate investment trust focused on communications infrastructure in the US. The company is the largest in its field in the US and owns, leases and operates over 40,000 cell towers and around 80,000 route miles of fiber. It therefore has a presence across all the major markets in the US and plays a key role in ensuring businesses and individuals have access to data, technology, and wireless services. It’s traded on the New York Stock Exchange and currently has a market capitalization of $79 billion.
Crown Castle International Corp: Insider Buying
Our data shows that on October 27, a director at Crown Castle International, Kevin Stephens, purchased 1,110 CCI shares at a price of $178.66 per share. This purchase cost the insider approximately $200,000 and increased his holding by 20%.
High Level of Confidence
Mr. Stephens – who joined Crown Castle International as an Independent Director in December 2020 – has extensive experience in the fiber and telecommunications industry. Prior to joining Crown Castle International, he served as Executive Vice President and President, Business Services for Altice USA. Before this role, he was President, Commercial and Advertising Operations at Suddenlink Communications. He is also currently a member of the investment committee at Cultivation Capital, a private equity firm. This background means he is likely to have a firm understanding of the future prospects of his company as well as a good grounding in valuing businesses.
What caught our attention here is that Mr. Stephens has increased his holding by 20%. Our data shows that he made a much smaller purchase in May this year and this latest purchase is significantly larger in size which suggests he is very confident the share price will move higher.
It’s worth noting here that the Independent Chairman of the Board purchased a large amount of stock in August.
Solid Q3 Results
Crown Castle International recently posted a solid set of Q3 results.
For the quarter ended September 30, 2021, site rental revenues were $1.451 billion, an increase of 8% on Q3 last year. Meanwhile, Adjusted EBITDA in the quarter amounted to $976 million, an increase of 11% on the third quarter of 2020.
As a result of these solid results, the company increased its annualized common stock dividend by 11% to $5.88 per share on the expectation of continued growth within the business.
Looking ahead, the company expects to continue seeing growth in the near term on the back of the robust tower leasing environment. For 2022, it gave a midpoint figure for site rental revenues of $5.98 billion, an increase of 5% on the expectations for full-year 2021. Adjusted EBITDA is expected to grow 6% to $4.02 billion.
"Looking forward, we continue to believe the deployment of 5G will extend our opportunity to create value for our shareholders, as we expect our ability to offer towers, small cells and fiber solutions, which are all integral components of communications networks, will be critical for our customers as they increase the density of their networks during the next deployment phase of 5G. Our diverse portfolio of assets and customer solutions has enabled us to outperform our long-term target growth rate of 7% to 8% since we established the target in 2017, demonstrating how well positioned Crown Castle is to capitalize on the robust demand for connectivity in the U.S,” said Jay Brown, Crown Castle International’s Chief Executive Officer.
On the back of these solid results and very optimistic outlook statement, we see the recent insider buying at the company as bullish. In upping his stake by 20%, the director is showing that he believes the market is undervaluing Crown Castle’s true worth.