Cogeco Communications (TSE:CCA) Reaches New 52-Week Low - Here's Why

Key Points

• Cogeco Communications shares hit a new 52-week low, falling to C$56.86 compared with the prior close of C$57.68. The stock remains below its 50-day and 200-day moving averages.
• Analysts have recently reduced price targets, although the consensus remains a “Moderate Buy” with an average target of C$73.11, implying substantial upside from current levels.
• The company reported C$2.35 in quarterly EPS on C$696.68 million in revenue and pays an annualized dividend of C$3.95 per share, representing a 6.9% yield.

Cogeco Communications Inc. (TSE:CCA - Get Free Report) shares reached a new 52-week low on Tuesday . The company traded as low as C$56.86 and last traded at C$56.88, with a volume of 79029 shares traded. The stock had previously closed at C$57.68.

Analyst Ratings Changes

Several equities analysts recently issued reports on CCA shares. Desjardins set a C$68.00 price objective on Cogeco Communications and gave the stock a "hold" rating in a report on Wednesday, July 15th. National Bank Financial lowered their target price on Cogeco Communications from C$70.00 to C$69.00 and set a "sector perform" rating on the stock in a report on Monday, August 31st. Finally, Royal Bank Of Canada cut their price target on Cogeco Communications from C$74.00 to C$70.00 and set a "sector perform" rating for the company in a research note on Friday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat.com, Cogeco Communications presently has an average rating of "Moderate Buy" and an average target price of C$73.11.

Cogeco Communications Stock Performance

The company has a quick ratio of 0.49, a current ratio of 0.47 and a debt-to-equity ratio of 241.79. The stock has a fifty day moving average price of C$60.33 and a two-hundred day moving average price of C$64.13. The company has a market capitalization of C$2.39 billion, a price-to-earnings ratio of -2.15, a PEG ratio of 4.77 and a beta of 0.97.

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

Cogeco Communications Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, August 12th. Shareholders of record on Wednesday, August 12th were paid a dividend of $0.987 per share. This represents a $3.95 dividend on an annualized basis and a dividend yield of 6.9%. The ex-dividend date of this dividend was Wednesday, July 29th. Cogeco Communications's dividend payout ratio is currently -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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