BCE (NYSE:BCE) Trading Down 6% - Should You Sell?

Key Points

• BCE's share price fell by 6% during mid-day trading, reaching a low of $22.99 before closing at $22.74, with a trading volume 42% below its average.
• The company reported Q2 earnings of $0.46 per share, missing analysts' expectations and generating revenue of $4.47 billion, below the anticipated $5.91 billion.
• BCE declared a quarterly dividend of $0.4375 per share, leading to an annualized dividend of $1.75 and a yield of 7.5% but with an unusually high payout ratio of 437.93%.

BCE, Inc. (NYSE:BCE - Get Free Report) TSE: BCE's share price dropped 6% during mid-day trading on Tuesday . The company traded as low as $22.99 and last traded at $22.74. Approximately 1,868,086 shares were traded during trading, a decline of 42% from the average daily volume of 3,214,643 shares. The stock had previously closed at $24.20.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on BCE. TD Securities reissued a "hold" rating on shares of BCE in a research note on Friday, August 8th. Weiss Ratings restated a "sell (d+)" rating on shares of BCE in a report on Wednesday, October 8th. CIBC reiterated a "neutral" rating on shares of BCE in a report on Friday, August 22nd. Cibc World Mkts cut shares of BCE from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 3rd. Finally, Desjardins upgraded shares of BCE from a "hold" rating to a "moderate buy" rating in a report on Tuesday, August 5th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, seven have assigned a Hold rating and five have given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus price target of $32.50.

BCE Stock Down 3.0%

The stock has a market capitalization of $21.90 billion, a PE ratio of 80.92, a price-to-earnings-growth ratio of 4.04 and a beta of 0.63. The company has a current ratio of 0.61, a quick ratio of 0.57 and a debt-to-equity ratio of 2.17. The company's 50-day moving average is $24.15 and its 200 day moving average is $22.98.

BCE (NYSE:BCE - Get Free Report) TSE: BCE last posted its quarterly earnings results on Thursday, August 7th. The utilities provider reported $0.46 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.52 by ($0.06). BCE had a return on equity of 18.89% and a net margin of 1.96%.The business had revenue of $4.47 billion for the quarter, compared to analysts' expectations of $5.91 billion. During the same period in the prior year, the business posted $0.78 earnings per share. The business's quarterly revenue was up 1.3% compared to the same quarter last year. BCE has set its FY 2025 guidance at 1.910-1.980 EPS. As a group, analysts anticipate that BCE, Inc. will post 1.94 EPS for the current year.

BCE Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Monday, September 15th will be given a dividend of $0.4375 per share. The ex-dividend date of this dividend is Monday, September 15th. This represents a $1.75 dividend on an annualized basis and a yield of 7.5%. BCE's dividend payout ratio (DPR) is currently 437.93%.

Hedge Funds Weigh In On BCE

A number of institutional investors have recently bought and sold shares of BCE. Euro Pacific Asset Management LLC increased its holdings in shares of BCE by 8.7% during the 3rd quarter. Euro Pacific Asset Management LLC now owns 134,378 shares of the utilities provider's stock valued at $3,066,000 after purchasing an additional 10,727 shares in the last quarter. Louisbourg Investments Inc. grew its position in BCE by 53.2% during the third quarter. Louisbourg Investments Inc. now owns 2,880 shares of the utilities provider's stock valued at $67,000 after buying an additional 1,000 shares during the period. Addenda Capital Inc. increased its holdings in BCE by 1.6% in the third quarter. Addenda Capital Inc. now owns 495,109 shares of the utilities provider's stock valued at $11,581,000 after buying an additional 7,904 shares in the last quarter. Sonora Investment Management Group LLC purchased a new position in BCE in the third quarter valued at $214,000. Finally, Old Port Advisors increased its holdings in BCE by 14.0% in the third quarter. Old Port Advisors now owns 70,560 shares of the utilities provider's stock valued at $1,650,000 after buying an additional 8,692 shares in the last quarter. 41.46% of the stock is owned by hedge funds and other institutional investors.

About BCE

BCE Inc, a communications company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. The company operates through two segments, Bell Communication and Technology Services, and Bell Media. The Bell Communication and Technology Services segment provides wireless products and services including mobile data and voice plans and devices; wireline products and services comprising data, including internet access, internet protocol television, cloud-based services, and business solutions, as well as voice, and other communication services and products; and satellite TV and connectivity services for residential, small and medium-sized business, government, and large enterprise customers.

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