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

Key Points

• Cogeco shares fell below their 200-day moving average during Thursday trading, briefly hitting C$62.95 before last trading at C$63.19.
• Analysts remain upbeat on the stock, with an average rating of “Strong Buy” and an average price target of C$77.33, even after TD trimmed its target from C$85 to C$81.
• Recent results showed modest profitability but heavy leverage: Cogeco reported C$2.12 EPS on revenue of C$713.04 million, while its debt-to-equity ratio was extremely high at 531.92.

Cogeco Inc. (TSE:CGO - Get Free Report)'s stock price crossed below its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of C$66.19 and traded as low as C$62.95. Cogeco shares last traded at C$63.19, with a volume of 23,268 shares traded.

Analyst Upgrades and Downgrades

CGO has been the topic of several research reports. TD raised shares of Cogeco from a "hold" rating to a "buy" rating and lowered their price target for the company from C$85.00 to C$81.00 in a research report on Monday, April 13th. TD Securities upgraded shares of Cogeco from a "hold" rating to a "strong-buy" rating in a research note on Monday, April 13th. Finally, Canadian Imperial Bank of Commerce boosted their target price on shares of Cogeco from C$61.00 to C$66.00 in a report on Friday, January 16th. One investment analyst has rated the stock with a Strong Buy rating and one has issued a Buy rating to the stock. According to MarketBeat.com, the stock has an average rating of "Strong Buy" and an average price target of C$77.33.

Cogeco Trading Up 0.1%

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 stock has a 50-day moving average price of C$68.44 and a 200-day moving average price of C$66.19. The stock has a market cap of C$598.41 million, a P/E ratio of 7.24, a P/E/G ratio of -0.28 and a beta of 0.87.

Cogeco (TSE:CGO - Get Free Report) last announced its earnings results on Thursday, April 9th. The company reported C$2.12 earnings per share for the quarter. Cogeco had a net margin of 2.86% and a return on equity of 9.64%. The business had revenue of C$713.04 million for the quarter. On average, equities research 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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