Shares of Iron Mountain are trading with stability around the $99.50 mark as the market anticipates the company’s scheduled appearance at the Barclays Global Technology Conference. The stock has made a notable recovery from its volatile period in November, a rebound supported by record third-quarter performance and reiterated full-year guidance.
Strong Quarterly Results Underpin Valuation
The current share price finds fundamental support in the robust financial figures released last month. Iron Mountain’s Q3 report showcased significant growth across key metrics:
* Total revenue increased by 12.6% to reach $1.75 billion.
* Adjusted funds from operations (AFFO) per share saw a 16.8% gain, landing at $1.32.
* The global data center segment stood out as the top performer, driving growth with a 33.2% surge in revenue.
In response to these results, the company’s board approved a 10% increase in the quarterly dividend, raising it to $0.864 per share. This adjustment translates to an annualized dividend of approximately $3.46, offering a forward yield of roughly 3.5% at present price levels.
Should investors sell immediately? Or is it worth buying Iron Mountain?
Recovery from Short-Seller Volatility
The equity has largely recouped losses following a sharp, brief sell-off in late November. The decline, which saw the stock fall approximately 6% on November 19, was triggered by a critical report from Gotham City Research that questioned the firm’s debt and accounting practices. Several analysts, including those from Wells Fargo, subsequently defended Iron Mountain, noting the short-seller’s thesis contained no new material information. Wells Fargo maintains an Overweight rating on the stock with a $125 price target. Since hitting its November low, the share price has reclaimed most of its lost ground.
Investor Focus Shifts to Data Center Strategy and Future Plans
All eyes are now on the upcoming presentation at the Barclays conference this Thursday, December 11. Chief Financial Officer Barry A. Hytinen is set to participate in a fireside chat, marking the company’s first major investor engagement since addressing the short report. Market participants are keenly awaiting updates, particularly concerning the rapidly expanding data center business and the progress toward its “Project Matterhorn” growth objectives.
Management has reaffirmed its 2025 forecast, projecting AFFO per share in the range of $5.04 to $5.13. During tomorrow’s session, investors will listen closely for commentary on capital allocation plans for 2026, with specific interest in funding for data center expansion and potential merger and acquisition activity. The presentation stands as the next significant catalyst for the stock.
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