Shenandoah Telecommunications (NASDAQ:SHEN) Hits New 52-Week Low - Should You Sell?

Key Points

• Shenandoah Telecommunications fell to a new 52-week low of $9.66, well below its 50-day and 200-day moving averages of $11.78 and $13.66, respectively.
• Analyst sentiment is mixed: two analysts rate the stock a Buy and one rates it Sell, producing a consensus Hold rating and a $27.50 price target.
• The company beat quarterly revenue and EPS estimates, but remains unprofitable, reporting a negative net margin and analysts forecasting a full-year loss; meanwhile, CFO James Volk purchased nearly $50,000 of shares.

Shenandoah Telecommunications Co (NASDAQ:SHEN - Get Free Report) reached a new 52-week low during trading on Wednesday. The stock traded as low as $9.66 and last traded at $9.6560, with a volume of 214,958 shares traded. The stock had previously closed at $10.14.

Analyst Upgrades and Downgrades

Several research firms have issued reports on SHEN. BWS Financial restated a "buy" rating and set a $26.00 price objective on shares of Shenandoah Telecommunications in a report on Thursday, July 30th. Wall Street Zen upgraded Shenandoah Telecommunications from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Shenandoah Telecommunications in a research note on Friday, July 31st. Two investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, Shenandoah Telecommunications currently has a consensus rating of "Hold" and a consensus price target of $27.50.

Shenandoah Telecommunications Stock Performance

The company has a debt-to-equity ratio of 0.83, a quick ratio of 0.85 and a current ratio of 0.85. The stock has a market capitalization of $531.55 million, a P/E ratio of -12.31 and a beta of 0.76. The company's fifty day simple moving average is $11.78 and its two-hundred day simple moving average is $13.66.

Shenandoah Telecommunications (NASDAQ:SHEN - Get Free Report) last released its earnings results on Wednesday, July 29th. The utilities provider reported ($0.17) EPS for the quarter, beating the consensus estimate of ($0.28) by $0.11. Shenandoah Telecommunications had a negative net margin of 10.83% and a negative return on equity of 4.54%. The firm had revenue of $93.46 million for the quarter, compared to analyst estimates of $92.83 million. As a group, equities analysts forecast that Shenandoah Telecommunications Co will post -0.85 EPS for the current year.

Insider Buying and Selling at Shenandoah Telecommunications

In related news, CFO James Volk purchased 4,283 shares of the business's stock in a transaction that occurred on Friday, July 31st. The shares were bought at an average cost of $11.67 per share, with a total value of $49,982.61. Following the acquisition, the chief financial officer owned 92,671 shares of the company's stock, valued at $1,081,470.57. This represents a 4.85% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. 5.01% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Shenandoah Telecommunications

Several institutional investors have recently made changes to their positions in the stock. Versant Capital Management Inc lifted its holdings in Shenandoah Telecommunications by 71.7% in the third quarter. Versant Capital Management Inc now owns 3,675 shares of the utilities provider's stock worth $41,000 after buying an additional 1,535 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in Shenandoah Telecommunications by 12.2% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 145,208 shares of the utilities provider's stock worth $2,190,000 after acquiring an additional 15,796 shares in the last quarter. Empowered Funds LLC bought a new stake in Shenandoah Telecommunications during the second quarter worth about $3,974,000. Caitlin John LLC bought a new position in shares of Shenandoah Telecommunications during the second quarter valued at approximately $69,000. Finally, Bank of America Corp DE purchased a new position in shares of Shenandoah Telecommunications during the second quarter valued at approximately $1,050,000. Hedge funds and other institutional investors own 61.96% of the company's stock.

Shenandoah Telecommunications Company Profile

Shenandoah Telecommunications Company, doing business as Shentel, is a telecommunications provider headquartered in Edinburg, Virginia. The company builds and operates broadband networks serving residential, business and institutional customers in communities across the Mid-Atlantic, including portions of Virginia, West Virginia, Maryland and Pennsylvania.

Shentel provides high-speed internet, digital video and voice services through its Glo Fiber and traditional cable broadband networks.

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