Shenandoah Telecommunications (NASDAQ:SHEN) Shares Down 4.9% - Time to Sell?

Key Points

• Shenandoah Telecommunications shares fell 4.9% to $10.96, trading well below their 50-day and 200-day moving averages on unusually light volume.
• Analyst sentiment is mixed: the stock carries a consensus “Hold” rating with a $27.50 price target, while ratings range from Buy to Sell.
• The company modestly beat quarterly revenue and EPS expectations, but remains unprofitable, with negative margins and analysts forecasting a full-year loss; institutional investors own nearly 62% of shares.

Shenandoah Telecommunications Co (NASDAQ:SHEN - Get Free Report)'s stock price traded down 4.9% on Friday. The company traded as low as $11.08 and last traded at $10.96. Approximately 11,894 shares changed hands during mid-day trading, a decline of 97% from the average daily volume of 452,436 shares. The stock had previously closed at $11.52.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the company. Wall Street Zen raised Shenandoah Telecommunications from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. BWS Financial restated a "buy" rating and issued a $26.00 target price on shares of Shenandoah Telecommunications in a report on Thursday, July 30th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Shenandoah Telecommunications in a research report on Friday, July 31st. Two equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $27.50.

Shenandoah Telecommunications Price Performance

The company has a debt-to-equity ratio of 0.83, a current ratio of 0.85 and a quick ratio of 0.85. The stock's fifty day simple moving average is $12.21 and its 200-day simple moving average is $13.91. The company has a market capitalization of $577.51 million, a P/E ratio of -13.39 and a beta of 0.76.

Shenandoah Telecommunications (NASDAQ:SHEN - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The utilities provider reported ($0.17) EPS for the quarter, topping analysts' consensus estimates of ($0.28) by $0.11. Shenandoah Telecommunications had a negative return on equity of 4.54% and a negative net margin of 10.83%.The business had revenue of $93.46 million for the quarter, compared to analyst estimates of $92.83 million. On average, equities analysts forecast that Shenandoah Telecommunications Co will post -0.85 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Shenandoah Telecommunications news, CFO James Volk purchased 4,283 shares of the company's stock in a transaction 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 transaction, the chief financial officer directly owned 92,671 shares in the company, valued at approximately $1,081,470.57. This represents a 4.85% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 5.01% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Shenandoah Telecommunications

Several hedge funds and other institutional investors have recently modified their holdings of SHEN. BlackRock Inc. bought a new stake in shares of Shenandoah Telecommunications in the second quarter valued at about $106,907,000. Bank of New York Mellon Corp bought a new position in Shenandoah Telecommunications during the second quarter valued at about $4,041,000. Empowered Funds LLC bought a new position in Shenandoah Telecommunications during the second quarter valued at about $3,974,000. Legal & General Group Plc acquired a new position in Shenandoah Telecommunications in the 2nd quarter valued at approximately $1,538,000. Finally, Bank of America Corp DE acquired a new position in Shenandoah Telecommunications in the 2nd quarter valued at approximately $1,050,000. Institutional investors and hedge funds 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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