Shaw Communications (SJR) Upgraded at Zacks Investment Research
Zacks Investment Research upgraded shares of Shaw Communications (NYSE:SJR) (TSE:SJR.B) from a hold rating to a buy rating in a report published on Tuesday morning. The firm currently has $22.00 price objective on the stock.
According to Zacks, “Shaw Communications continues to benefit from strong wireless business primarily due to increase in subscriber base. Additionally, higher average revenue per unit (ARPU) is also aiding the wireless growth. This momentum is expected to continue as the company may benefit from an increasing data-driven environment. Moreover, robust performance by the company’s wireless operations that cover almost half of the Canadian population are expected to boost the top line. Further, we are bullish about Shaw Communications’ initiative to deploy 700 MHz and 2500 MHz spectrum, which further improves the network quality. Notably, shares have outperformed the industry over the past year. However, continuing losses in the wireline segment is expected to hurt top-line growth. Moreover, customers’ shift to lower margin video packages is also expected to hurt top-line growth on a year-over-year basis.”
SJR has been the subject of several other research reports. Desjardins raised shares of Shaw Communications from a hold rating to a buy rating in a report on Tuesday, December 18th. ValuEngine raised shares of Shaw Communications from a hold rating to a buy rating in a report on Friday, December 21st. Finally, Canaccord Genuity downgraded shares of Shaw Communications from a buy rating to a hold rating in a report on Thursday, October 25th. Three analysts have rated the stock with a hold rating and six have given a buy rating to the company. Shaw Communications presently has a consensus rating of Buy and a consensus target price of $26.00.
Shaw Communications (NYSE:SJR) (TSE:SJR.B) last released its quarterly earnings results on Thursday, October 25th. The company reported $0.30 EPS for the quarter, topping the consensus estimate of $0.27 by $0.03. The business had revenue of $1.02 billion during the quarter, compared to analyst estimates of $1.02 billion. Shaw Communications had a net margin of 1.04% and a return on equity of 12.90%. As a group, sell-side analysts forecast that Shaw Communications will post 1.04 earnings per share for the current year.
The firm also recently declared a monthly dividend, which will be paid on Wednesday, January 30th. Shareholders of record on Tuesday, January 15th will be issued a $0.0754 dividend. This represents a $0.90 dividend on an annualized basis and a yield of 4.60%. The ex-dividend date is Monday, January 14th. Shaw Communications’s payout ratio is 75.42%.
A number of hedge funds and other institutional investors have recently modified their holdings of the business. Bank of Montreal Can lifted its stake in Shaw Communications by 43.8% during the third quarter. Bank of Montreal Can now owns 10,265,279 shares of the company’s stock valued at $200,071,000 after buying an additional 3,129,137 shares in the last quarter. Great West Life Assurance Co. Can lifted its stake in Shaw Communications by 105.1% during the third quarter. Great West Life Assurance Co. Can now owns 4,789,358 shares of the company’s stock valued at $93,385,000 after buying an additional 2,454,150 shares in the last quarter. Citadel Advisors LLC lifted its stake in Shaw Communications by 57.9% during the third quarter. Citadel Advisors LLC now owns 5,380,352 shares of the company’s stock valued at $104,804,000 after buying an additional 1,973,047 shares in the last quarter. The Manufacturers Life Insurance Company lifted its stake in Shaw Communications by 46.1% during the third quarter. The Manufacturers Life Insurance Company now owns 5,020,773 shares of the company’s stock valued at $97,855,000 after buying an additional 1,583,258 shares in the last quarter. Finally, Mackenzie Financial Corp lifted its stake in Shaw Communications by 3.0% during the third quarter. Mackenzie Financial Corp now owns 40,614,652 shares of the company’s stock valued at $791,580,000 after buying an additional 1,189,449 shares in the last quarter. 53.66% of the stock is owned by institutional investors.
About Shaw Communications
Shaw Communications Inc operates as a connectivity company in North America. The company operates through Wireline and Wireless segments. The Wireline segment provides broadband Internet, Shaw Go WiFi, video, and digital phone services to residential customers; and Internet, data, WiFi, digital phone, and video services to business customers.
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