Frontier Communications Corp. (FTR) Upgraded at Zacks Investment Research
Frontier Communications Corp. (NASDAQ:FTR) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Friday.
According to Zacks, “Frontier Communications is nicely positioned to gain from continued growth of high-speed data and voice network. Frontier Communications is also leaving no stone unturned to derive benefits from the growing Business Service Segment, especially, the SMB segment. Also, as a part of its marketing initiatives, Frontier launched its first retail outlet in southern California which will enhance their presence in the region. However, Frontier Communications remains significantly challenged by slow economic recovery in its service territories and competes with the loss of legacy fixed telephony business to wireless and other offerings. The company expects to continue experiencing decline in wireless backhaul revenues due to customer migration to Ethernet solutions at lower price points.”
A number of other research analysts have also recently issued reports on the company. Citigroup Inc. decreased their target price on Frontier Communications Corp. from $4.00 to $3.50 and set a “sell” rating for the company in a research note on Friday, September 16th. Macquarie initiated coverage on Frontier Communications Corp. in a research report on Monday, July 11th. They set an “underperform” rating and a $4.65 price objective for the company. Wells Fargo & Co. reaffirmed an “outperform” rating and set a $8.75 price objective on shares of Frontier Communications Corp. in a research report on Monday, September 19th. Bank of America Corp. set a $8.00 price objective on Frontier Communications Corp. and gave the stock a “buy” rating in a research report on Monday. Finally, Morgan Stanley cut Frontier Communications Corp. from an “overweight” rating to an “equal weight” rating and reduced their price objective for the stock from $6.00 to $5.40 in a research report on Monday, July 18th. One research analyst has rated the stock with a sell rating, four have issued a hold rating and nine have issued a buy rating to the stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $5.79.
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Frontier Communications Corp. (NASDAQ:FTR) remained flat at $4.00 during mid-day trading on Friday. 796,299 shares of the company were exchanged. The firm’s market cap is $4.69 billion. Frontier Communications Corp. has a 12-month low of $3.81 and a 12-month high of $5.85. The firm’s 50-day moving average is $4.36 and its 200 day moving average is $4.94.
Frontier Communications Corp. (NASDAQ:FTR) last posted its earnings results on Monday, August 1st. The company reported ($0.07) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.03) by $0.04. Frontier Communications Corp. had a negative net margin of 4.85% and a positive return on equity of 2.52%. The business earned $2.61 billion during the quarter, compared to analyst estimates of $2.75 billion. During the same period in the previous year, the firm posted $0.03 earnings per share. The firm’s revenue was up 90.6% on a year-over-year basis. Analysts anticipate that Frontier Communications Corp. will post ($0.08) earnings per share for the current year.
The company also recently announced a quarterly dividend, which was paid on Friday, September 30th. Stockholders of record on Thursday, September 15th were paid a dividend of $0.105 per share. The ex-dividend date of this dividend was Tuesday, September 13th. This represents a $0.42 dividend on an annualized basis and a dividend yield of 10.53%. Frontier Communications Corp.’s dividend payout ratio (DPR) is currently -85.71%.
Institutional investors have recently made changes to their positions in the company. Bayesian Capital Management LP purchased a new position in shares of Frontier Communications Corp. during the first quarter worth $117,000. Murphy Capital Management Inc. purchased a new position in shares of Frontier Communications Corp. during the second quarter worth $106,000. NEXT Financial Group Inc raised its position in shares of Frontier Communications Corp. by 23.2% in the second quarter. NEXT Financial Group Inc now owns 22,450 shares of the company’s stock worth $110,000 after buying an additional 4,233 shares during the period. Bank of Nova Scotia raised its position in shares of Frontier Communications Corp. by 6.2% in the second quarter. Bank of Nova Scotia now owns 23,138 shares of the company’s stock worth $114,000 after buying an additional 1,360 shares during the period. Finally, Private Bank & Trust Co. purchased a new position in shares of Frontier Communications Corp. during the second quarter worth $116,000. Institutional investors own 65.93% of the company’s stock.
Frontier Communications Corp. Company Profile
Frontier Communications Corporation (Frontier) offers a range of voice, data, and video services and products. The Company offers a portfolio of communications services for residential and business customers in each of its markets. The Company’s product portfolio includes Internet access, broadband-enabled services, video services and voice services.
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