Zacks Investment Research downgraded shares of Chunghwa Telecom Co. (NYSE:CHT) from a hold rating to a sell rating in a research report sent to investors on Wednesday.

According to Zacks, “Chunghwa unveiled a disappointing guidance for certain important metrics for full-year 2016. Both operating and non-operating income and net income are expected to decline for 2016. Moreover, stringent pricing pressure, oversaturated and competitive telecom market and telecom regulatory changes are some of the near-term risks. However, Chunghwa seems to dominate the Taiwanese telecom market with its presence in 80% of the broadband market and almost 35% of the wireless market. The company also intends to raise its market share in the 4G market in Taiwan to 40% aiming to add a net of 2 million 4G wireless subscribers in 2016.Chunghwa is even expanding its subscriber base on the back of high-speed next-generation FTTx (fiber to the home/building) offerings. Chunghwa is also building large-scale fiber-to-the-home (FTTH) and fiber-to-the-building (FTTB) access infrastructure.”

Chunghwa Telecom (NYSE:CHT) opened at 35.28 on Wednesday. The stock has a market cap of $27.37 billion, a PE ratio of 19.82 and a beta of 0.31. The company’s 50 day moving average is $36.19 and its 200 day moving average is $35.01. Chunghwa Telecom has a one year low of $29.31 and a one year high of $38.47.

The company also recently declared an annual dividend, which was paid on Friday, September 2nd. Shareholders of record on Thursday, July 21st were issued a dividend of $1.332 per share. The ex-dividend date of this dividend was Tuesday, July 19th. Chunghwa Telecom’s dividend payout ratio (DPR) is presently 78.61%.

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Schwab Charles Investment Management Inc. boosted its position in Chunghwa Telecom by 3.9% in the second quarter. Schwab Charles Investment Management Inc. now owns 210,611 shares of the company’s stock valued at $7,646,000 after buying an additional 7,906 shares during the period. Panagora Asset Management Inc. boosted its position in Chunghwa Telecom by 20.2% in the second quarter. Panagora Asset Management Inc. now owns 7,515 shares of the company’s stock valued at $273,000 after buying an additional 1,265 shares during the period. Causeway Capital Management LLC boosted its position in Chunghwa Telecom by 22,087.1% in the second quarter. Causeway Capital Management LLC now owns 6,878,000 shares of the company’s stock valued at $26,007,000 after buying an additional 6,847,000 shares during the period. Guggenheim Capital LLC boosted its position in Chunghwa Telecom by 7.2% in the second quarter. Guggenheim Capital LLC now owns 243,921 shares of the company’s stock valued at $8,855,000 after buying an additional 16,419 shares during the period. Finally, Barclays PLC boosted its position in Chunghwa Telecom by 18,251.5% in the second quarter. Barclays PLC now owns 6,056 shares of the company’s stock valued at $220,000 after buying an additional 6,023 shares during the period. Institutional investors own 5.47% of the company’s stock.

Chunghwa Telecom Company Profile

Chunghwa Telecom Co, Ltd. provides telecommunication services. The Company’s segments include Domestic fixed communications business, which is engaged in the provision of local telephone services, domestic long distance telephone services, broadband access and related services; Mobile communications business, which is engaged in the provision of mobile services, sales of mobile handsets and data cards, and related services; Internet business, which is engaged in the provision of HiNet services and related services; International fixed communications business, which includes international long distance telephone services, international leased line services, international data services, satellite services, and information and communication technology (ICT) and other international services, and Others, which is engaged in the provision of non-telecom services.

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