Cogeco (TSE:CGO) Stock Price Crosses Below Two Hundred Day Moving Average - Here's Why

Key Points

• Price signal: Cogeco's stock fell below its 200-day moving average of C$66.08, trading as low as C$61.90 and last at C$62.02 on volume of 21,794 shares.
• Analyst sentiment is upbeat—TD upgraded the shares (to buy/strong-buy) and CIBC raised its target—resulting in a consensus rating of Strong Buy and a consensus price target of C$77.33.
• Fundamentals are mixed: the stock trades at a low P/E of 7.10 with recent quarterly EPS of C$2.12 and revenue of C$713.04M, but carries a very high debt-to-equity ratio of 531.92, implying substantial leverage.

Cogeco Inc. (TSE:CGO - Get Free Report)'s stock price passed below its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of C$66.08 and traded as low as C$61.90. Cogeco shares last traded at C$62.02, with a volume of 21,794 shares changing hands.

Wall Street Analyst Weigh In

Several equities research analysts have commented on CGO shares. 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 report on Monday, April 13th. TD Securities raised shares of Cogeco from a "hold" rating to a "strong-buy" rating in a report on Monday, April 13th. Finally, Canadian Imperial Bank of Commerce upped their price target 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 given a Buy rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Strong Buy" and a consensus price target of C$77.33.

Cogeco Price Performance

The stock's fifty day moving average is C$69.11 and its 200-day moving average is C$66.08. The stock has a market capitalization of C$587.33 million, a PE ratio of 7.10, a P/E/G ratio of -0.28 and a beta of 0.83. The company has a debt-to-equity ratio of 531.92, a current ratio of 0.50 and a quick ratio of 0.51.

Cogeco (TSE:CGO - Get Free Report) last announced its quarterly 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 firm had revenue of C$713.04 million for the quarter. As a group, equities analysts predict that Cogeco Inc. will post 11.054717 earnings per share for the current fiscal year.

About Cogeco

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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