Shaw Communications (NYSE:SJR) Rating Lowered to Sell at Zacks Investment Research

Zacks Investment Research cut shares of Shaw Communications (NYSE:SJRGet Rating) (TSE:SJR.B) from a hold rating to a sell rating in a report published on Wednesday morning, Zacks.com reports. They currently have $30.00 price objective on the stock.

According to Zacks, “Shaw Communications benefited from growth in the wireless segments, driven by an expanding subscriber base. Bundling of Shaw Mobile with Internet service is helping it win customers. The deployment of 700 MHz spectrum enhances customer relations by providing far-reaching coverage and stronger indoor wireless reception. Shaw continues to fortify its footprint across Canada. The launch of Fibre+ Gig Internet service, which is available to more than 99% of its residential customers, is expected to boost wireline revenues. Shaw has outperformed the industry year to date. Nevertheless, the company is battling against weakness in the wireline segment due to the attrition of video, satellite and phone subscribers. Markedly, Shaw is set to be acquired by Rogers Communications for $26 billion.”

A number of other brokerages have also weighed in on SJR. StockNews.com upgraded shares of Shaw Communications from a sell rating to a hold rating in a report on Friday, April 22nd. CIBC boosted their price objective on shares of Shaw Communications from C$27.00 to C$40.50 in a report on Tuesday, January 25th. Finally, National Bank Financial upgraded shares of Shaw Communications from a sector perform rating to an outperform rating in a report on Wednesday, May 18th. One analyst has rated the stock with a sell rating, two have given a hold rating and two have given a buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of Hold and an average target price of $37.00.

SJR stock opened at $28.30 on Wednesday. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.87 and a quick ratio of 0.82. Shaw Communications has a one year low of $25.63 and a one year high of $31.60. The stock has a market cap of $13.50 billion, a PE ratio of 17.91 and a beta of 0.66. The firm has a 50 day simple moving average of $29.66 and a two-hundred day simple moving average of $29.66.

Shaw Communications (NYSE:SJRGet Rating) (TSE:SJR.B) last released its quarterly earnings results on Wednesday, April 13th. The company reported $0.31 EPS for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.01). Shaw Communications had a return on equity of 16.57% and a net margin of 18.19%. The company had revenue of $1.36 billion during the quarter, compared to analysts’ expectations of $1.38 billion. During the same period in the prior year, the firm earned $0.34 EPS. Shaw Communications’s quarterly revenue was down 2.0% on a year-over-year basis. On average, research analysts expect that Shaw Communications will post 1.26 EPS for the current fiscal year.

The company also recently declared a monthly dividend, which will be paid on Thursday, July 28th. Investors of record on Friday, July 15th will be issued a dividend of $0.0767 per share. The ex-dividend date is Thursday, July 14th. This represents a $0.92 dividend on an annualized basis and a yield of 3.25%. Shaw Communications’s dividend payout ratio is currently 58.23%.

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Bank of Montreal Can raised its holdings in Shaw Communications by 16.6% in the 4th quarter. Bank of Montreal Can now owns 14,888,390 shares of the company’s stock worth $452,076,000 after purchasing an additional 2,123,548 shares in the last quarter. Morgan Stanley raised its holdings in Shaw Communications by 53.0% in the 3rd quarter. Morgan Stanley now owns 11,545,722 shares of the company’s stock worth $335,287,000 after purchasing an additional 4,001,945 shares in the last quarter. FIL Ltd raised its holdings in Shaw Communications by 36.6% in the 3rd quarter. FIL Ltd now owns 9,836,397 shares of the company’s stock worth $285,944,000 after purchasing an additional 2,633,262 shares in the last quarter. Canada Pension Plan Investment Board raised its holdings in Shaw Communications by 81.2% in the 1st quarter. Canada Pension Plan Investment Board now owns 8,443,800 shares of the company’s stock worth $262,295,000 after purchasing an additional 3,783,600 shares in the last quarter. Finally, Mackenzie Financial Corp raised its holdings in Shaw Communications by 6.4% in the 4th quarter. Mackenzie Financial Corp now owns 8,424,561 shares of the company’s stock worth $255,687,000 after purchasing an additional 508,663 shares in the last quarter. Institutional investors and hedge funds own 56.04% of the company’s stock.

About Shaw Communications (Get Rating)

Shaw Communications Inc operates as a connectivity company in North America. The company operates through Wireline and Wireless segments. The company's Wireline segment provides cable telecommunications services, including video, Internet, WiFi, phone, satellite video, and data networking through a national fibre-optic backbone network to Canadian consumers, North American businesses, and public-sector entities.

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