Rogers Communication (NYSE:RCI) Trading Up 10.8% - Should You Buy?

Key Points

• Shares jumped 10.8% on Wednesday to $36.56 while volume was ~530,010 shares, about 56% below the stock's average daily trading volume.
• Analysts currently give Rogers a consensus rating of "Hold" with an average price target of $36.00 (3 Buys, 5 Holds, 1 Sell), though Barclays maintains a positive view with a $37 target.
• Rogers beat quarterly EPS estimates ($1.08 vs. $0.98) while reporting $4.49B in revenue (below a cited $5.94B estimate); the company pays a $0.50 quarterly dividend (annualized $2.00) for a 5.5% yield and trades at a P/E of about 3.97.

Rogers Communication, Inc. (NYSE:RCI - Get Free Report) TSE: RCI.B shares rose 10.8% on Wednesday . The stock traded as high as $36.34 and last traded at $36.5550. Approximately 530,010 shares were traded during trading, a decline of 56% from the average daily volume of 1,208,317 shares. The stock had previously closed at $32.99.

Analyst Ratings Changes

A number of analysts have issued reports on the stock. Weiss Ratings reiterated a "hold (c+)" rating on shares of Rogers Communication in a research note on Friday, December 26th. Scotiabank reiterated a "sector perform" rating on shares of Rogers Communication in a research note on Monday, January 12th. Wall Street Zen cut shares of Rogers Communication from a "buy" rating to a "hold" rating in a research note on Saturday, January 31st. TD Securities cut shares of Rogers Communication from a "buy" rating to a "hold" rating in a research note on Thursday, April 2nd. Finally, Barclays reiterated a "positive" rating and issued a $37.00 target price on shares of Rogers Communication in a research note on Tuesday, January 27th. Three equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $36.00.

Rogers Communication Stock Performance

The company has a market cap of $19.82 billion, a P/E ratio of 3.97, a price-to-earnings-growth ratio of 5.91 and a beta of 0.72. The company has a quick ratio of 0.57, a current ratio of 0.61 and a debt-to-equity ratio of 1.48. The stock's 50-day moving average price is $37.51 and its 200 day moving average price is $37.41.

Rogers Communication (NYSE:RCI - Get Free Report) TSE: RCI.B last released its quarterly earnings results on Thursday, January 29th. The Wireless communications provider reported $1.08 EPS for the quarter, beating analysts' consensus estimates of $0.98 by $0.10. Rogers Communication had a net margin of 32.29% and a return on equity of 14.22%. The company had revenue of $4.49 billion for the quarter, compared to analyst estimates of $5.94 billion. During the same quarter last year, the firm posted $1.46 earnings per share. The company's quarterly revenue was up 12.6% compared to the same quarter last year. As a group, research analysts expect that Rogers Communication, Inc. will post 3.46 EPS for the current fiscal year.

Rogers Communication Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, April 2nd. Stockholders of record on Tuesday, March 10th were given a $0.50 dividend. The ex-dividend date of this dividend was Tuesday, March 10th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 5.5%. Rogers Communication's dividend payout ratio (DPR) is currently 15.78%.

Institutional Investors Weigh In On Rogers Communication

Hedge funds and other institutional investors have recently modified their holdings of the stock. Manchester Capital Management LLC acquired a new stake in shares of Rogers Communication in the fourth quarter worth $26,000. Farther Finance Advisors LLC grew its stake in shares of Rogers Communication by 107.4% in the fourth quarter. Farther Finance Advisors LLC now owns 786 shares of the Wireless communications provider's stock worth $30,000 after acquiring an additional 407 shares during the last quarter. Headlands Technologies LLC grew its stake in shares of Rogers Communication by 143.2% in the second quarter. Headlands Technologies LLC now owns 1,661 shares of the Wireless communications provider's stock worth $49,000 after acquiring an additional 978 shares during the last quarter. FNY Investment Advisers LLC acquired a new stake in shares of Rogers Communication in the third quarter worth $58,000. Finally, EverSource Wealth Advisors LLC grew its stake in shares of Rogers Communication by 52.6% in the second quarter. EverSource Wealth Advisors LLC now owns 1,981 shares of the Wireless communications provider's stock worth $59,000 after acquiring an additional 683 shares during the last quarter. Institutional investors and hedge funds own 45.49% of the company's stock.

About Rogers Communication

Rogers Communications Inc is a Canadian integrated communications and media company headquartered in Toronto, Ontario. The company provides a broad range of telecommunications services to residential and business customers across Canada, including wireless voice and data services, cable television, high-speed internet, and home phone services. In the enterprise market it offers managed IT, data center and cloud solutions, networking and connectivity services targeted to small businesses, large enterprises and public sector clients.

In addition to connectivity services, Rogers operates a significant media portfolio that includes national and regional television and radio assets, sports broadcasting properties and other content businesses.

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