Should You Sell SBA Communications Corporation (SBAC)?

Renaissance Investment Management, an investment management company, released its “Midcap Growth Strategy” third-quarter investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned -0.43% (net) compared to a -0.65% return for the Russell Midcap Growth Index. A focus on high-quality growth stocks at attractive valuations led the strategy to outperform the index in the quarter. The Consumer Discretionary and Energy sectors significantly contributed to the strategy’s performance while Health Care and Real Estate detracted from the performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Renaissance Investment highlighted stocks like SBA Communications Corporation (NASDAQ:SBAC) in the Q3 2022 investor letter. SBA Communications Corporation (NASDAQ:SBAC) is a wireless communications infrastructure operator. On December 29, 2022, SBA Communications Corporation (NASDAQ:SBAC) stock closed at $284.89 per share. One-month return of SBA Communications Corporation (NASDAQ:SBAC) was -5.42% and its shares lost 26.68% of their value over the last 52 weeks. SBA Communications Corporation (NASDAQ:SBAC) has a market capitalization of $30.758 billion.

Renaissance Investment made the following comment about SBA Communications Corporation (NASDAQ:SBAC) in its Q3 2022 investor letter:

“Conversely, we sold our position in SBA Communications Corporation (NASDAQ:SBAC) following a deterioration in fundamental factors. From a qualitative perspective, we were concerned about the company’s aggressive international expansion which increases currency risk, but, more importantly, signals a lack of investable growth in the U.S. market now that 5G wireless investments are slowing. We were also becoming increasingly worried about the impact that rising interest rates will have on SBA’s over-levered balance sheet.”

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SBA Communications Corporation (NASDAQ:SBAC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held SBA Communications Corporation (NASDAQ:SBAC) at the end of the third quarter, which was 36 in the previous quarter.

We discussed SBA Communications Corporation (NASDAQ:SBAC) in another article and shared TimesSquare Capital Management’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.