Cogeco (TSE:CGO) Stock Passes Below 200-Day Moving Average - Should You Sell?

Key Points

• Technical: Cogeco's stock dropped below its 200‑day moving average, trading as low as C$62.87 and last at C$63.00 versus the 200‑day MA of C$66.02, suggesting potential downside pressure.
• Analyst sentiment: Recent upgrades (including TD) have left the stock with an average rating of Strong Buy and an average price target of C$77.33.
• Financials: The company has very high leverage and tight liquidity (debt‑to‑equity 531.92, current ratio 0.50) while trading at a P/E of 7.22 and a market cap of about C$596.6M.

Cogeco Inc. (TSE:CGO - Get Free Report)'s stock price passed below its two hundred day moving average during trading on Tuesday . The stock has a two hundred day moving average of C$66.02 and traded as low as C$62.87. Cogeco shares last traded at C$63.00, with a volume of 49,294 shares.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the company. TD raised Cogeco from a "hold" rating to a "buy" rating and dropped their price target for the company from C$85.00 to C$81.00 in a report on Monday, April 13th. Canadian Imperial Bank of Commerce upped their price target on Cogeco from C$61.00 to C$66.00 in a report on Friday, January 16th. Finally, TD Securities raised Cogeco from a "hold" rating to a "strong-buy" rating in a report on Monday, April 13th. One analyst has rated the stock with a Strong Buy rating and one has given a Buy rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Strong Buy" and an average price target of C$77.33.

Cogeco Stock Performance

The firm's 50 day simple moving average is C$70.18 and its 200-day simple moving average is C$66.02. The company has a debt-to-equity ratio of 531.92, a quick ratio of 0.51 and a current ratio of 0.50. The company has a market capitalization of C$596.61 million, a price-to-earnings ratio of 7.22, a P/E/G ratio of -0.28 and a beta of 0.83.

Cogeco (TSE:CGO - Get Free Report) last announced its earnings results on Thursday, April 9th. The company reported C$2.12 earnings per share (EPS) for the quarter. Cogeco had a net margin of 2.86% and a return on equity of 9.64%. The company had revenue of C$713.04 million for the quarter. Analysts expect that Cogeco Inc. will post 11.054717 EPS for the current year.

Cogeco Company Profile

Cogeco Inc is a telecommunications company. The company has two reportable operating segments, namely Canadian broadband services and American broadband services. The Canadian and American broadband services segments provide a wide range of Internet, video, and telephony services primarily to residential customers, as well as business services across their coverage areas. The Canadian broadband services activities are carried out by Cogeco Connexion in the provinces of Quebec and Ontario and the American broadband services activities are carried out by Atlantic Broadband in 12 states.

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