Cogeco Communications (TSE:CCA) Sets New 12-Month Low - Here's What Happened

Key Points

• Cogeco Communications shares fell to a new 52-week low of C$60.10, closing around C$60.17 after previously ending at C$61.76.
• Analyst sentiment remains generally positive but has weakened, with several firms cutting price targets to about C$70. The stock has a consensus “Moderate Buy” rating and an average target of C$73.22.
• Cogeco reported C$2.35 in quarterly EPS and C$696.68 million in revenue, while announcing a quarterly dividend of C$0.987, representing a 6.6% annualized yield.

Cogeco Communications Inc. (TSE:CCA - Get Free Report)'s stock price reached a new 52-week low during trading on Thursday . The stock traded as low as C$60.10 and last traded at C$60.17, with a volume of 25079 shares trading hands. The stock had previously closed at C$61.76.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on CCA shares. National Bank Financial downgraded Cogeco Communications from an "outperform" rating to a "hold" rating and cut their target price for the stock from C$75.00 to C$70.00 in a research note on Friday, July 17th. Desjardins set a C$68.00 price target on Cogeco Communications and gave the stock a "hold" rating in a report on Wednesday, July 15th. TD Securities raised Cogeco Communications from a "hold" rating to a "strong-buy" rating in a research report on Monday, April 13th. Canaccord Genuity Group reduced their price objective on Cogeco Communications from C$74.00 to C$70.00 and set a "buy" rating for the company in a research note on Monday, April 13th. Finally, Royal Bank Of Canada decreased their target price on Cogeco Communications from C$74.00 to C$70.00 and set a "sector perform" rating for the company in a research report on Friday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, Cogeco Communications presently has a consensus rating of "Moderate Buy" and an average price target of C$73.22.

Cogeco Communications Stock Down 2.5%

The stock's 50-day moving average price is C$64.07 and its two-hundred day moving average price is C$66.70. The company has a current ratio of 0.47, a quick ratio of 0.49 and a debt-to-equity ratio of 241.79. The stock has a market capitalization of C$2.53 billion, a P/E ratio of -2.28, a P/E/G ratio of 4.77 and a beta of 0.93.

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

Cogeco Communications Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 12th. Shareholders of record on Wednesday, August 12th will be paid a $0.987 dividend. The ex-dividend date is Wednesday, July 29th. This represents a $3.95 annualized dividend and a dividend yield of 6.6%. Cogeco Communications's payout ratio is presently -14.69%.

Cogeco Communications Company Profile

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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