Cogeco Communications (TSE:CCA) Reaches New 52-Week Low - What's Next?

Key Points

• Cogeco Communications hit a new 52-week low, trading as low as C$60.80 amid modest volume, extending recent weakness in the stock.
• Analyst sentiment remains mixed: several firms cut price targets or downgraded the stock, though TD Securities upgraded it to strong-buy. The consensus rating is currently Moderate Buy with a C$73.22 price target.
• The company reported quarterly EPS of C$2.35 and announced a quarterly dividend of $0.987 per share, implying a 6.5% yield.

Cogeco Communications Inc. (TSE:CCA - Get Free Report) shares reached a new 52-week low during mid-day trading on Thursday . The company traded as low as C$60.80 and last traded at C$60.87, with a volume of 38684 shares. The stock had previously closed at C$61.53.

Analysts Set New Price Targets

A number of analysts have recently commented on CCA shares. TD Securities upgraded shares of Cogeco Communications from a "hold" rating to a "strong-buy" rating in a report on Monday, April 13th. Scotiabank decreased their price target on shares of Cogeco Communications from C$74.25 to C$72.00 and set a "sector perform" rating for the company in a research note on Monday, April 13th. National Bank Financial cut shares of Cogeco Communications from an "outperform" rating to a "hold" rating and lowered their price target for the company from C$75.00 to C$70.00 in a research report on Friday, July 17th. TD raised shares of Cogeco Communications from a "hold" rating to a "buy" rating and dropped their price objective for the stock from C$85.00 to C$83.00 in a research note on Monday, April 13th. Finally, Canaccord Genuity Group cut their price objective on shares of Cogeco Communications from C$74.00 to C$70.00 and set a "buy" rating on the stock in a report on Monday, April 13th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of C$73.22.

Cogeco Communications Stock Down 1.5%

The firm has a market capitalization of C$2.55 billion, a P/E ratio of -2.29, a P/E/G ratio of 4.77 and a beta of 0.93. The company has a fifty day simple moving average of C$64.30 and a 200 day simple moving average of C$66.92. The company has a quick ratio of 0.49, a current ratio of 0.47 and a debt-to-equity ratio of 241.79.

Cogeco Communications (TSE:CCA - Get Free Report) last posted its quarterly earnings results on Wednesday, July 15th. The company reported C$2.35 earnings per share (EPS) for the quarter. Cogeco Communications had a negative return on equity of 38.76% and a negative net margin of 39.56%.The firm had revenue of C$696.68 million during the quarter. On average, equities analysts expect that Cogeco Communications Inc. will post 8.4900498 EPS for the current fiscal year.

Cogeco Communications Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 12th. Stockholders of record on Wednesday, August 12th will be paid a $0.987 dividend. This represents a $3.95 annualized dividend and a dividend yield of 6.5%. The ex-dividend date is Wednesday, July 29th. Cogeco Communications's dividend payout ratio is currently -14.69%.

About Cogeco Communications

Cogeco Communications Inc is a leading telecommunications provider committed to bringing people together through powerful communications and entertainment experiences. We provide world-class Internet, wireless, video and wireline phone services to 1.6 million residential and business subscribers in Canada and thirteen states in the United States. Our services are marketed under the Cogeco and oxio brands in Canada, and under the Breezeline brand in the U.S. We take pride in our strong presence in the communities we serve and in our commitment to a sustainable future.

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