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

Key Points

• Technical signal: Cogeco's share price fell below its 200‑day moving average (200‑DMA C$65.82), trading as low as C$60.89 and last at C$61.94 on volume of 132,732 shares.
• Analyst view: Consensus rating is Hold with a C$75.50 target; TD Securities downgraded from Buy to Hold and cut its target from C$120 to C$85 while CIBC raised its target to C$66.
• Fundamentals/risks: The stock has a low P/E of 7.17 and recent quarterly EPS of C$2.12, but carries very high leverage (debt‑to‑equity 540.51) and weak liquidity (current ratio 0.44), adding financial risk.

Cogeco Inc. (TSE:CGO - Get Free Report)'s share price crossed below its 200-day moving average during trading on Friday . The stock has a 200-day moving average of C$65.82 and traded as low as C$60.89. Cogeco shares last traded at C$61.94, with a volume of 132,732 shares changing hands.

Analysts Set New Price Targets

Several research firms have recently issued reports on CGO. Canadian Imperial Bank of Commerce boosted their target price on Cogeco from C$61.00 to C$66.00 in a research report on Friday, January 16th. TD Securities cut Cogeco from a "buy" rating to a "hold" rating and lowered their target price for the stock from C$120.00 to C$85.00 in a report on Thursday, March 26th. One investment analyst has rated the stock with a Hold rating, According to data from MarketBeat, Cogeco currently has a consensus rating of "Hold" and a consensus target price of C$75.50.

Cogeco Stock Performance

The company has a 50 day simple moving average of C$71.04 and a 200 day simple moving average of C$65.82. The stock has a market cap of C$586.45 million, a price-to-earnings ratio of 7.17, a P/E/G ratio of -0.28 and a beta of 0.83. The company has a quick ratio of 0.51, a current ratio of 0.44 and a debt-to-equity ratio of 540.51.

Cogeco (TSE:CGO - Get Free Report) last released its quarterly earnings data on Thursday, April 9th. The company reported C$2.12 earnings per share (EPS) for the quarter. Cogeco had a return on equity of 9.61% and a net margin of 2.80%.The company had revenue of C$713.04 million during the quarter. As a group, equities research analysts forecast 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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