Shaw Communications Inc. (SJR) Downgraded by Zacks Investment Research
Shaw Communications Inc. (NYSE:SJR) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report issued on Tuesday.
According to Zacks, “Shaw Communications’ recent divestiture of its subsidiary Shaw Media Inc. to Corus Entertainment Inc., places Shaw Communications as a pure-play Canadian telecom company with a solid growth profile. Further, venture into the Canadian wireless market will be beneficial for it. The company’s recent launch of mobile TV platform – FreeRange TV and its SmartWiFi and SmartSecurity Services should gain traction. The company is also launching high speed internet services and is entering into tie-ups to boost cloud suit. However, the company’s operation in a highly competitive wireless market with incumbents like Rogers Communications, TELUS Corp. and BCE witnessed losses in its video, Internet and landline phone business. Moreover, considerable debt, escalating capital expenditure, deteriorating cash position, rolling out of new brands and advertising promotion is likely to escalate expenses going ahead and may act as headwinds.”
Other research analysts have also recently issued research reports about the stock. BMO Capital Markets restated a “hold” rating on shares of Shaw Communications in a report on Monday, July 18th. Canaccord Genuity restated a “hold” rating and issued a $24.00 price objective (down previously from $25.00) on shares of Shaw Communications in a report on Friday, July 15th. TD Securities reiterated a “buy” rating and issued a $28.00 price target on shares of Shaw Communications in a research note on Tuesday, July 19th. Scotiabank reiterated an “outperform” rating and issued a $30.00 price target (up previously from $29.00) on shares of Shaw Communications in a research note on Thursday, July 7th. Finally, RBC Capital Markets reiterated a “sector perform” rating and issued a $25.00 price target on shares of Shaw Communications in a research note on Tuesday, July 19th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and six have given a buy rating to the stock. Shaw Communications currently has an average rating of “Hold” and a consensus target price of $25.56.
Shaw Communications (NYSE:SJR) traded up 0.66% during trading on Tuesday, reaching $19.76. The company’s stock had a trading volume of 218,211 shares. The company’s 50 day moving average price is $20.14 and its 200-day moving average price is $19.27. The stock has a market cap of $9.55 billion, a P/E ratio of 9.39 and a beta of 0.85. Shaw Communications has a 1-year low of $15.66 and a 1-year high of $21.41.
Shaw Communications (NYSE:SJR) last announced its quarterly earnings results on Friday, July 15th. The company reported $0.11 earnings per share for the quarter, missing analysts’ consensus estimates of $0.35 by $0.24. Shaw Communications had a net margin of 26.04% and a return on equity of 12.48%. The company had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same quarter in the prior year, the business earned $0.42 earnings per share. Shaw Communications’s revenue was up 13.0% on a year-over-year basis. Equities analysts forecast that Shaw Communications will post $0.87 earnings per share for the current fiscal year.
The business also recently declared a sep 16 dividend, which will be paid on Thursday, September 29th. Stockholders of record on Thursday, September 15th will be paid a dividend of $0.0988 per share. The ex-dividend date of this dividend is Tuesday, September 13th. Shaw Communications’s dividend payout ratio (DPR) is presently 43.33%.
Institutional investors have recently bought and sold shares of the company. Canada Pension Plan Investment Board boosted its position in Shaw Communications by 0.4% in the first quarter. Canada Pension Plan Investment Board now owns 7,272 shares of the company’s stock worth $141,000 after buying an additional 28 shares during the period. US Bancorp DE boosted its position in Shaw Communications by 63.4% in the second quarter. US Bancorp DE now owns 7,867 shares of the company’s stock worth $151,000 after buying an additional 3,053 shares during the period. Cubist Systematic Strategies LLC bought a new position in Shaw Communications during the second quarter worth $216,000. Eqis Capital Management Inc. bought a new position in Shaw Communications during the second quarter worth $218,000. Finally, Caisse DE Depot ET Placement DU Quebec bought a new position in Shaw Communications during the second quarter worth $266,000. 52.12% of the stock is currently owned by institutional investors and hedge funds.
Shaw Communications Company Profile
Shaw Communications Inc (Shaw) is a communication company. The Company’s operating segments are Consumer, Business Network Services, Business Infrastructure Services and Media. The Consumer division provides cable telecommunications services, including video, Internet, wireless fidelity (WiFi) and digital phone, and satellite video to Canadian consumers.
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