Institutional Investors Recalibrate Positions in Lamar Advertising

The ownership landscape of Lamar Advertising Company, a prominent real estate investment trust specializing in outdoor advertising, is undergoing a significant shift as major institutional players adjust their stakes. This repositioning follows the company's latest earnings report, which highlighted robust financial fundamentals.

Lamar Advertising's third-quarter 2025 results, released on November 6, provided a strong foundation for recent trading activity. The company posted revenue of $585.54 million, exceeding expectations of $584.00 million. Key financial metrics from the report include:
* Adjusted funds from operations (AFFO) per share came in at $2.20, surpassing the consensus estimate of $2.14.
* Adjusted EBITDA increased by 3.5% to $280.8 million.
* Revenue growth, adjusted for acquisitions, improved to 2.9%.
* Digital billboard revenue grew by 5%, now constituting 31% of total billboard revenue.

Management reaffirmed its full-year AFFO per share guidance in the range of $8.10 to $8.20. Analysts, on average, anticipate earnings of $7.92 per share for the current fiscal year. The company's total debt stands at three times its EBITDA, indicating a solid balance sheet.

A Clash of Investment Theses Among Major Holders

Institutional investors collectively control 93.78% of Lamar Advertising's shares. Recent regulatory filings reveal divergent strategies being employed by these large funds, reflecting contrasting views on the company's outlook.

Should investors sell immediately? Or is it worth buying Lamar Advertising?

Notable moves in the second quarter included substantial reductions and new acquisitions:
* Russell Investments Group Ltd. sharply reduced its holding by 52.6%, selling 65,908 shares. Its remaining position is valued at approximately $7.22 million.
* Conversely, AQR Capital Management LLC aggressively expanded its stake by 426%.
* Geode Capital Management LLC increased its holdings by 27.8%.
* Nuveen established a new position worth roughly $40.7 million.
* Norges Bank, Norway’s central bank, entered a new position with 957,813 shares valued at about $116.24 million.

Market Sentiment and Valuation Metrics

Lamar's stock currently trades near $132.50, above both its 50-day and 200-day moving averages, which sit around $123. The company's market capitalization is approximately $13.42 billion.

Wall Street analysts maintain a generally cautious stance. The consensus price target is $131.75 with an average rating of "Hold." However, there are notable exceptions. Citigroup upgraded the stock to "Buy" on November 13, raising its price target from $135.00 to $145.00. Weiss Ratings recently reaffirmed a "Hold" rating. The market's next significant catalyst will likely be the fourth-quarter 2025 results, scheduled for release in February 2026.