Rogers Communication (NYSE:RCI) Stock Price Down 4.3% - Time to Sell?

Key Points

• Rogers Communication shares fell 4.3% to about $29.70, trading below both their 50-day and 200-day moving averages.
• Analyst sentiment remains generally positive, with six Buy, two Hold and one Sell ratings; the consensus is “Moderate Buy” with a $36 average price target.
• The company reported quarterly revenue of $3.95 billion and EPS of $0.83, beating estimates, while offering a C$0.50 quarterly dividend equivalent to a 6.7% yield.

Shares of Rogers Communication, Inc. (NYSE:RCI - Get Free Report) TSE: RCI.B traded down 4.3% during trading on Friday. The stock traded as low as $29.44 and last traded at $29.6950. Approximately 779,518 shares changed hands during mid-day trading, a decline of 37% from the average daily volume of 1,239,826 shares. The stock had previously closed at $31.04.

Analyst Ratings Changes

RCI has been the topic of several analyst reports. Wall Street Zen cut shares of Rogers Communication from a "hold" rating to a "sell" rating in a research note on Saturday, October 3rd. Desjardins raised Rogers Communication from a "hold" rating to a "buy" rating in a research report on Monday, September 14th. Barclays decreased their target price on Rogers Communication from $37.00 to $36.00 and set an "equal weight" rating for the company in a research report on Thursday, July 16th. TD Securities reiterated a "buy" rating on shares of Rogers Communication in a research report on Thursday, July 23rd. Finally, Scotiabank reiterated an "outperform" rating on shares of Rogers Communication in a research report on Tuesday, July 7th. Six investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $36.00.

Rogers Communication Price Performance

The company has a debt-to-equity ratio of 1.54, a current ratio of 0.55 and a quick ratio of 0.51. The business's fifty day moving average price is $34.74 and its 200-day moving average price is $35.30. The stock has a market capitalization of $16.05 billion, a price-to-earnings ratio of 3.58, a PEG ratio of 3.86 and a beta of 0.65.

Rogers Communication (NYSE:RCI - Get Free Report) TSE: RCI.B last issued its earnings results on Wednesday, July 22nd. The Wireless communications provider reported $0.83 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.80 by $0.03. Rogers Communication had a net margin of 27.54% and a return on equity of 11.56%. The business had revenue of $3.95 billion for the quarter, compared to analysts' expectations of $3.91 billion. During the same quarter in the previous year, the firm posted $1.14 EPS. The business's revenue for the quarter was up 7.6% compared to the same quarter last year. On average, research analysts forecast that Rogers Communication, Inc. will post 3.24 EPS for the current year.

Rogers Communication Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, October 2nd. Stockholders of record on Tuesday, September 8th were issued a C$0.50 dividend. The ex-dividend date of this dividend was Tuesday, September 8th. This represents a $2.00 annualized dividend and a dividend yield of 6.7%. Rogers Communication's dividend payout ratio is presently 17.39%.

Hedge Funds Weigh In On Rogers Communication

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Versant Capital Management Inc grew its holdings in shares of Rogers Communication by 8.2% during the third quarter. Versant Capital Management Inc now owns 6,326 shares of the Wireless communications provider's stock worth $195,000 after purchasing an additional 480 shares in the last quarter. Cidel Asset Management Inc. lifted its position in Rogers Communication by 49.1% during the second quarter. Cidel Asset Management Inc. now owns 16,693 shares of the Wireless communications provider's stock valued at $543,000 after purchasing an additional 5,500 shares during the last quarter. Squarepoint Ops LLC grew its stake in Rogers Communication by 2.5% in the 2nd quarter. Squarepoint Ops LLC now owns 21,669 shares of the Wireless communications provider's stock worth $704,000 after buying an additional 524 shares in the last quarter. Nykredit A S bought a new position in shares of Rogers Communication in the 2nd quarter worth $1,847,000. Finally, Public Employees Retirement System of Ohio bought a new position in shares of Rogers Communication in the 2nd quarter worth $1,395,000. 45.49% of the stock is currently owned by hedge funds and other institutional investors.

About Rogers Communication

Rogers Communications Inc is a Canadian communications and media company headquartered in Toronto, Ontario. Founded by Ted Rogers in 1960, the company provides wireless and wireline telecommunications services to consumers, businesses and public-sector organizations across Canada.

Rogers' telecommunications operations include mobile voice and data services, high-speed internet, cable television, home phone services and related connectivity products. The company also offers business communications, networking, cybersecurity and information technology services through its enterprise operations.

Through Rogers Sports & Media, the company operates television and radio networks, digital media properties and sports-related businesses.

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