Cogeco Communications (TSE:CCA) Hits New 1-Year Low After Analyst Downgrade

Key Points

• Cogeco Communications shares fell to a new 52-week low, trading as low as C$50.60 after CIBC cut its price target from C$71 to C$65 while maintaining a neutral rating.
• Several brokerages have recently reduced their price targets, though analysts collectively maintain a “Moderate Buy” consensus with an average target of C$72.00.
• The company pays an annualized dividend of C$3.95 per share, representing a high 7.9% yield, but it reported negative net margins and return on equity, alongside elevated debt-to-equity of 241.79.

Cogeco Communications Inc. (TSE:CCA - Get Free Report)'s share price reached a new 52-week low on Friday after Canadian Imperial Bank of Commerce lowered their price target on the stock from C$71.00 to C$65.00. Canadian Imperial Bank of Commerce currently has a neutral rating on the stock. Cogeco Communications traded as low as C$50.60 and last traded at C$50.75, with a volume of 9009 shares traded. The stock had previously closed at C$52.50.

A number of other brokerages have also weighed in on CCA. Desjardins decreased their price objective on shares of Cogeco Communications from C$68.00 to C$64.00 and set a "hold" rating for the company in a report on Wednesday. Royal Bank Of Canada dropped their price objective on Cogeco Communications from C$74.00 to C$70.00 and set a "sector perform" rating on the stock in a research report on Friday, July 10th. Finally, National Bank Financial lowered their target price on shares of Cogeco Communications from C$70.00 to C$69.00 and set a "sector perform" rating on the stock in a research note on Monday, August 31st. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, Cogeco Communications has a consensus rating of "Moderate Buy" and a consensus target price of C$72.00.

Cogeco Communications Price Performance

The stock has a market capitalization of C$2.10 billion, a PE ratio of -1.89, a price-to-earnings-growth ratio of 4.77 and a beta of 1.08. The stock's 50 day moving average price is C$58.04 and its 200-day moving average price is C$62.38. The company has a quick ratio of 0.49, a current ratio of 0.47 and a debt-to-equity ratio of 241.79.

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

Cogeco Communications Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, August 12th. Stockholders of record on Wednesday, August 12th were issued a dividend of $0.9870 per share. The ex-dividend date of this dividend was Wednesday, July 29th. This represents a $3.95 dividend on an annualized basis and a dividend yield of 7.9%. Cogeco Communications's payout ratio is -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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