Shenandoah Telecommunications (NASDAQ:SHEN) Shares Gap Up Following Insider Buying Activity

Key Points

• Shenandoah Telecommunications' stock price gapped up from $13.45 to $14.12 before trading at $13.61, with 89,243 shares changing hands.
• Wall Street analyst ratings show a significant downgrade, with Wall Street Zen moving the stock from a "hold" to a "strong sell" rating, although the average rating remains a "Buy" with a target price of $26.00.
• Recent insider transactions revealed that major stakeholders continue to invest in the company, with Ecp Controlco purchasing 12,000 shares at $13.25 each, indicating confidence in Shenandoah's prospects despite its negative financial indicators.

Shenandoah Telecommunications Co (NASDAQ:SHEN - Get Free Report)'s stock price gapped up prior to trading on Monday following insider buying activity. The stock had previously closed at $13.45, but opened at $14.12. Shenandoah Telecommunications shares last traded at $13.61, with a volume of 89,243 shares.

Specifically, major shareholder Ecp Controlco, Llc purchased 3,000 shares of Shenandoah Telecommunications stock in a transaction on Friday, September 5th. The stock was purchased at an average price of $13.45 per share, with a total value of $40,350.00. Following the transaction, the insider directly owned 3,441,252 shares in the company, valued at $46,284,839.40. The trade was a 0.09% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this link. Also, major shareholder Ecp Controlco, Llc purchased 2,068 shares of Shenandoah Telecommunications stock in a transaction on Thursday, September 4th. The shares were purchased at an average cost of $12.96 per share, with a total value of $26,801.28. Following the transaction, the insider owned 3,438,252 shares in the company, valued at approximately $44,559,745.92. The trade was a 0.06% increase in their ownership of the stock. The disclosure for this purchase can be found here. In other news, major shareholder Ecp Controlco, Llc purchased 12,000 shares of Shenandoah Telecommunications stock in a transaction on Friday, August 29th. The stock was purchased at an average price of $13.25 per share, with a total value of $159,000.00. Following the transaction, the insider directly owned 3,377,233 shares in the company, valued at $44,748,337.25. The trade was a 0.36% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this link.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen cut Shenandoah Telecommunications from a "hold" rating to a "strong sell" rating in a research note on Sunday, August 10th. One research analyst has rated the stock with a Buy rating, According to data from MarketBeat, the stock currently has a consensus rating of "Buy" and an average price target of $26.00.

Shenandoah Telecommunications Trading Down 1.0%

The company has a market cap of $743.90 million, a P/E ratio of -24.21 and a beta of 0.87. The company has a current ratio of 0.73, a quick ratio of 0.73 and a debt-to-equity ratio of 0.56. The business has a 50 day moving average price of $13.72 and a 200-day moving average price of $12.99.

Shenandoah Telecommunications (NASDAQ:SHEN - Get Free Report) last announced its quarterly earnings data on Thursday, July 31st. The utilities provider reported ($0.19) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.20) by $0.01. Shenandoah Telecommunications had a negative return on equity of 3.78% and a negative net margin of 8.90%.The company had revenue of $88.57 million for the quarter, compared to analysts' expectations of $89.94 million. Shenandoah Telecommunications has set its FY 2025 guidance at EPS. Analysts forecast that Shenandoah Telecommunications Co will post -0.49 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Shenandoah Telecommunications

Large investors have recently added to or reduced their stakes in the business. Ancora Advisors LLC bought a new stake in Shenandoah Telecommunications in the 1st quarter valued at $50,000. State of Wyoming bought a new stake in Shenandoah Telecommunications in the 2nd quarter valued at $65,000. Tower Research Capital LLC TRC raised its stake in Shenandoah Telecommunications by 80.6% in the 2nd quarter. Tower Research Capital LLC TRC now owns 4,992 shares of the utilities provider's stock valued at $68,000 after acquiring an additional 2,228 shares during the period. Raymond James Financial Inc. bought a new stake in Shenandoah Telecommunications in the 2nd quarter valued at $76,000. Finally, Acadian Asset Management LLC bought a new stake in Shenandoah Telecommunications in the 1st quarter valued at $76,000. Institutional investors own 61.96% of the company's stock.

About Shenandoah Telecommunications

Shenandoah Telecommunications Company, together with its subsidiaries, provides a range of broadband communication services and cell tower colocation space in the Mid-Atlantic portion of the United States. It operates in two segments, Broadband and Tower. The company Broadband segment offers broadband, video, and voice services to residential and commercial customers in Virginia, West Virginia, Maryland, Pennsylvania, and Kentucky through hybrid fiber coaxial cable under the Shentel brand; and fiber optic services under the Glo Fiber brand name.