Iron Mountain’s Stock Faces Short-Term Struggles Amid Long-Term Growth
Portsmouth, New Hampshire’s Iron Mountain Incorporated (IRM) stands as a prominent figure in storage and information management. The company offers an array of services, including data centers, secure records storage, information management, asset lifecycle management, and secure destruction. With a market cap of $32.7 billion, Iron Mountain serves more than 240,000 customers worldwide.
As a “large-cap stock,” Iron Mountain showcases its substantial market presence, bolstered by a history of supporting its customers’ needs effectively. With a robust position in the specialty REIT sector, the company has been a key player for years.
Despite its significant strengths, IRM’s stock has recently dipped 15.5% from its peak of $130.24 on October 25. In the last three months, the stock has declined over 5%, trailing behind the S&P 500 Index’s ($SPX) remarkable 7.4% rise during the same period.
Looking at the bigger picture, Iron Mountain has shown impressive growth. Year-to-date, IRM stock prices have surged by 57.3%, and over the past 52 weeks, the increase stands at 62.1%. This growth has outpaced the S&P 500, which posted a 26.9% gain in 2024 and a 28.2% rise in the last year.
For further clarity on Iron Mountain’s performance, it’s noteworthy that the stock has traded above its 200-day moving average over the past year, while currently sitting below its 50-day moving average since early November, exhibiting some fluctuations.
On November 6, following its Q3 earnings report, Iron Mountain’s stock fell nearly 9%. The company saw a solid 12.2% year-over-year growth in revenues, totaling $1.6 billion, driven largely by increases in storage rental and service revenue. However, expenses rose more quickly than revenue, with a year-over-year increase of 13.5% to over $1.3 billion. This mismatch resulted in a $33.6 million net loss for the quarter, compared to a $91 million net profit from the same period a year earlier.
In a positive light, Iron Mountain’s adjusted funds from operations per share grew by 10.8% year-over-year to $1.13, surpassing analysts’ expectations.
IRM has also outperformed its competitor Digital Realty Trust, Inc. (DLR), which recorded gains of 37.5% in 2024 and 40% over the past year.
Though the recent stock drop has raised concerns, analysts maintain a favorable outlook for Iron Mountain’s long-term potential. Among eight analysts tracking the stock, it holds a consensus “Moderate Buy” rating, with a mean price target of $122.25, indicating an 11% upside from current levels.
On the date of publication, Aditya Sarawgi did not hold any positions in any of the securities mentioned in this article. All information and data herein are provided for informational purposes. For further details, see the Barchart Disclosure Policy here.
The views expressed here are those of the author and do not necessarily reflect those of Nasdaq, Inc.
