Shaw Communications Inc. (NYSE:SJR) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors 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 analysts have also recently issued reports about the stock. TD Securities reaffirmed a “buy” rating and set a $28.00 price target on shares of Shaw Communications in a research report on Thursday, June 30th. BMO Capital Markets reaffirmed a “hold” rating on shares of Shaw Communications in a research report on Monday, July 18th. Canaccord Genuity reaffirmed a “hold” rating and set a $24.00 price target (down from $25.00) on shares of Shaw Communications in a research report on Friday, July 15th. National Bank Financial raised shares of Shaw Communications from a “sector perform” rating to an “outperform” rating and upped their price target for the stock from $24.50 to $27.00 in a research report on Monday, July 11th. Finally, Scotiabank reissued an “outperform” rating and issued a $30.00 price objective (up from $29.00) on shares of Shaw Communications in a research report on Thursday, July 7th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and six have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus price target of $25.56.

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Shaw Communications (NYSE:SJR) traded up 0.71% during trading on Tuesday, hitting $19.77. The company had a trading volume of 223,339 shares. The company has a market cap of $9.56 billion, a PE ratio of 9.39 and a beta of 0.85. Shaw Communications has a 12 month low of $15.66 and a 12 month high of $21.41. The company’s 50 day moving average price is $20.14 and its 200-day moving average price is $19.27.

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 return on equity of 12.48% and a net margin of 26.04%. The business had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.29 billion. During the same period last year, the company posted $0.42 earnings per share. The firm’s revenue for the quarter was up 13.0% on a year-over-year basis. Equities analysts expect that Shaw Communications will post $0.87 earnings per share for the current year.

The firm also recently disclosed a sep 16 dividend, which will be paid on Thursday, September 29th. Investors 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 43.33%.

Large investors have recently added to or reduced their stakes in the company. Carnick & Kubik Group LLC acquired a new stake in Shaw Communications during the second quarter valued at $502,000. Tobam raised its stake in Shaw Communications by 117.0% in the second quarter. Tobam now owns 174,900 shares of the company’s stock valued at $3,340,000 after buying an additional 94,300 shares during the period. Stifel Financial Corp raised its stake in Shaw Communications by 1.4% in the second quarter. Stifel Financial Corp now owns 14,154 shares of the company’s stock valued at $272,000 after buying an additional 197 shares during the period. Mawer Investment Management Ltd. raised its stake in Shaw Communications by 9.6% in the second quarter. Mawer Investment Management Ltd. now owns 6,542,722 shares of the company’s stock valued at $162,260,000 after buying an additional 573,595 shares during the period. Finally, Legal & General Group Plc raised its stake in Shaw Communications by 5.3% in the second quarter. Legal & General Group Plc now owns 1,926,775 shares of the company’s stock valued at $36,795,000 after buying an additional 96,867 shares during the period. Hedge funds and other institutional investors own 52.12% of the company’s stock.

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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