Cogeco Communications (TSE:CCA) Stock Price Breaks Below 200-Day Moving Average - Time to Sell?

Key Points

• Cogeco Communications shares fell below their 200-day moving average, trading as low as C$51.22 versus the average of C$62.84, and last changed hands at C$51.58.
• Analysts remain broadly constructive but cautious: the stock carries a “Moderate Buy” consensus rating and an average price target of C$73.11, despite recent target reductions and “Hold” or “Sector Perform” ratings.
• The company reported C$696.68 million in quarterly revenue and C$2.35 in EPS, but posted negative margins and return on equity. It also offers a quarterly dividend equivalent to a 7.7% annualized yield.

Cogeco Communications Inc. (TSE:CCA - Get Free Report) passed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of C$62.84 and traded as low as C$51.22. Cogeco Communications shares last traded at C$51.58, with a volume of 312,311 shares traded.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the company. National Bank Financial reduced their price target on Cogeco Communications from C$70.00 to C$69.00 and set a "sector perform" rating for the company in a report on Monday, August 31st. 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. Finally, Royal Bank Of Canada cut their price objective on shares of 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. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of C$73.11.

Cogeco Communications Stock Down 1.1%

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 business has a 50-day simple moving average of C$58.57 and a 200-day simple moving average of C$62.84. The stock has a market cap of C$2.17 billion, a P/E ratio of -1.95, a PEG ratio of 4.77 and a beta of 1.08.

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

Cogeco Communications Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, August 12th. Investors of record on Wednesday, August 12th were paid a dividend of $0.9870 per share. The ex-dividend date was Wednesday, July 29th. This represents a $3.95 annualized dividend and a yield of 7.7%. Cogeco Communications's dividend payout ratio is presently -14.69%.

About Cogeco Communications

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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