Sprint Corp. (S) Downgraded by Zacks Investment Research to “Sell”
Sprint Corp. (NYSE:S) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “Sprint is experiencing high cash burn rate by offering attractive promotional plans and lucrative discounts. Additionally, Sprint has a very low capital expenditure relative to its peers. In a capital intensive industry, lower cap-ex will limit the company’s scope for network upgrades and expansion, which may hurt its operations in the long term. Moreover, the company has a debt-laden balance sheet and negative operating cash flow and has been witnessing losses since 2007. However, its initiatives towards improving liquidity through a sale and leaseback transaction should improve liquidity concerns for the time being. Also, its largely positive preliminary Q3 results offers optimism.”
Several other brokerages have also recently commented on S. Argus reaffirmed a “hold” rating on shares of Sprint Corp. in a research report on Tuesday, July 26th. Robert W. Baird reaffirmed a “neutral” rating and set a $3.00 price target on shares of Sprint Corp. in a research report on Tuesday, June 28th. Royal Bank Of Canada increased their price target on shares of Sprint Corp. from $5.00 to $6.00 and gave the stock a “sector perform” rating in a research report on Tuesday, July 26th. Oppenheimer Holdings Inc. reaffirmed a “market perform” rating on shares of Sprint Corp. in a research report on Tuesday, July 26th. Finally, Barclays PLC raised their target price on shares of Sprint Corp. from $4.00 to $5.00 and gave the stock an “equal weight” rating in a report on Tuesday, July 26th. Ten equities research analysts have rated the stock with a sell rating, fifteen have given a hold rating and three have assigned a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus price target of $4.58.
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Sprint Corp. (NYSE:S) traded up 1.17% during trading on Wednesday, reaching $6.94. The company’s stock had a trading volume of 7,515,660 shares. The firm has a 50 day moving average of $6.60 and a 200 day moving average of $4.98. Sprint Corp. has a 52 week low of $2.18 and a 52 week high of $7.16. The stock’s market capitalization is $27.61 billion.
Sprint Corp. (NYSE:S) last issued its quarterly earnings results on Monday, July 25th. The cell phone carrier reported ($0.08) EPS for the quarter, topping the consensus estimate of ($0.08) by $0.00. Sprint Corp. had a negative net margin of 7.08% and a negative return on equity of 10.53%. The business had revenue of $8 billion for the quarter, compared to analysts’ expectations of $8.69 billion. During the same quarter last year, the company posted ($0.46) earnings per share. The company’s quarterly revenue was down .2% compared to the same quarter last year. Analysts expect that Sprint Corp. will post ($0.83) EPS for the current year.
Several large investors have recently added to or reduced their stakes in S. Primecap Management Co. CA raised its stake in Sprint Corp. by 4.5% in the first quarter. Primecap Management Co. CA now owns 28,890,500 shares of the cell phone carrier’s stock valued at $100,539,000 after buying an additional 1,240,500 shares during the last quarter. State Street Corp raised its stake in Sprint Corp. by 2.3% in the first quarter. State Street Corp now owns 13,220,561 shares of the cell phone carrier’s stock valued at $46,010,000 after buying an additional 295,819 shares during the last quarter. OMERS ADMINISTRATION Corp acquired a new stake in Sprint Corp. during the first quarter valued at about $205,000. Meiji Yasuda Asset Management Co Ltd. raised its stake in Sprint Corp. by 364.8% in the first quarter. Meiji Yasuda Asset Management Co Ltd. now owns 63,833 shares of the cell phone carrier’s stock valued at $222,000 after buying an additional 50,100 shares during the last quarter. Finally, M&T Bank Corp raised its stake in Sprint Corp. by 39.5% in the first quarter. M&T Bank Corp now owns 59,136 shares of the cell phone carrier’s stock valued at $206,000 after buying an additional 16,733 shares during the last quarter. 14.91% of the stock is owned by institutional investors and hedge funds.
Sprint Corp. Company Profile
Sprint Corporation (Sprint) is a holding company. The Company, along with its subsidiaries, is a communications company offering a range of wireless and wireline communications products and services that are designed to meet the needs of consumers, businesses, government subscribers and resellers. It operates through two segments: Wireless and Wireline.
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