Shenandoah Telecommunications (NASDAQ:SHEN) Stock Price Down 7.1% - Here's Why

Key Points

• Shenandoah Telecommunications shares fell 7.1% to approximately $9.31, with trading volume 71% below the average session volume.
• Analyst sentiment remains mixed: two analysts rate the stock Buy and one rates it Sell, resulting in a consensus Hold rating and an average price target of $27.50.
• The company reported a quarterly loss of $0.19 per share, better than the expected $0.23 loss, while revenue of $93.93 million was slightly below estimates. Shentel also increased its annual dividend to $0.12 per share.

Shenandoah Telecommunications Co (NASDAQ:SHEN - Get Free Report)'s share price fell 7.1% on Wednesday. The stock traded as low as $9.62 and last traded at $9.3140. Approximately 136,088 shares were traded during trading, a decline of 71% from the average session volume of 471,664 shares. The stock had previously closed at $10.03.

Wall Street Analyst Weigh In

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

Shenandoah Telecommunications Stock Performance

The stock's fifty day moving average is $11.49 and its 200 day moving average is $13.43. The stock has a market cap of $527.74 million, a P/E ratio of -12.24 and a beta of 0.76.

Shenandoah Telecommunications (NASDAQ:SHEN - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The utilities provider reported ($0.19) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.23) by $0.04. The company had revenue of $93.93 million during the quarter, compared to the consensus estimate of $94.10 million. Equities research analysts predict that Shenandoah Telecommunications Co will post -0.85 EPS for the current year.

Shenandoah Telecommunications Increases Dividend

The firm also recently announced an annual dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Monday, November 2nd will be paid a $0.12 dividend. The ex-dividend date is Monday, November 2nd. This is a positive change from Shenandoah Telecommunications's previous annual dividend of $0.11. This represents a yield of 123.0%. Shenandoah Telecommunications's payout ratio is -15.38%.

Insiders Place Their Bets

In related news, CFO James Volk bought 4,283 shares of Shenandoah Telecommunications stock in a transaction dated Friday, July 31st. The shares were acquired at an average cost of $11.67 per share, with a total value of $49,982.61. Following the completion of the transaction, the chief financial officer owned 92,671 shares in the company, valued at $1,081,470.57. The trade was a 4.85% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 5.01% of the stock is owned by insiders.

Hedge Funds Weigh In On Shenandoah Telecommunications

Institutional investors have recently made changes to their positions in the company. BlackRock Inc. purchased a new stake in Shenandoah Telecommunications during the second quarter worth $106,907,000. Bank of New York Mellon Corp purchased a new position in Shenandoah Telecommunications in the 2nd quarter worth $4,041,000. Empowered Funds LLC purchased a new stake in Shenandoah Telecommunications in the second quarter valued at approximately $3,974,000. Legal & General Group Plc purchased a new stake in shares of Shenandoah Telecommunications in the 2nd quarter valued at $1,538,000. Finally, Bank of America Corp DE acquired a new stake in Shenandoah Telecommunications during the 2nd quarter worth about $1,050,000. Hedge funds and other institutional investors own 61.96% of the company's stock.

About Shenandoah Telecommunications

Shenandoah Telecommunications Company, also known as Shentel, is a telecommunications provider headquartered in Edinburg, Virginia. The company delivers broadband communications services to residential and commercial customers, with a focus on high-speed internet, fiber-optic connectivity, video and voice services.

Shentel operates its Glo Fiber network in selected communities and provides broadband services through its legacy cable and fiber networks. Its service territory primarily includes markets in Virginia, West Virginia, Maryland and Pennsylvania.

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