Zacks Investment Research Lowers Sprint Corp. (S) to Sell
Sprint Corp. (NYSE:S) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued 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 also recently commented on S. Argus reaffirmed a “hold” rating on shares of Sprint Corp. in a research note on Tuesday, July 26th. Robert W. Baird reaffirmed a “neutral” rating and issued a $3.00 target price on shares of Sprint Corp. in a research note on Tuesday, June 28th. Royal Bank Of Canada lifted their target price on shares of Sprint Corp. from $5.00 to $6.00 and gave the stock a “sector perform” rating in a research note on Tuesday, July 26th. Oppenheimer Holdings Inc. reaffirmed a “market perform” rating on shares of Sprint Corp. in a research note on Tuesday, July 26th. Finally, Barclays PLC lifted their target price on shares of Sprint Corp. from $4.00 to $5.00 and gave the stock an “equal weight” rating in a research note on Tuesday, July 26th. Ten research analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and three have given a buy rating to the stock. The company has a consensus rating of “Hold” and a consensus price target of $4.58.
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Sprint Corp. (NYSE:S) traded up 1.46% during midday trading on Wednesday, hitting $6.96. 7,110,533 shares of the stock were exchanged. Sprint Corp. has a 1-year low of $2.18 and a 1-year high of $7.16. The company’s 50 day moving average is $6.60 and its 200-day moving average is $4.98. The stock’s market cap is $27.69 billion.
Sprint Corp. (NYSE:S) last posted 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. The firm had revenue of $8 billion for the quarter, compared to the consensus estimate of $8.69 billion. Sprint Corp. had a negative net margin of 7.08% and a negative return on equity of 10.53%. The business’s revenue was down .2% compared to the same quarter last year. During the same period last year, the firm posted ($0.46) earnings per share. On average, analysts expect that Sprint Corp. will post ($0.83) earnings per share for the current year.
Hedge funds and other institutional investors have recently bought and sold shares of the company. MIG Capital LLC raised its stake in Sprint Corp. by 1.6% in the first quarter. MIG Capital LLC now owns 7,229,415 shares of the cell phone carrier’s stock valued at $25,158,000 after buying an additional 114,015 shares during the last quarter. Sumitomo Mitsui Trust Holdings Inc. raised its stake in Sprint Corp. by 1.9% in the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 2,146,632 shares of the cell phone carrier’s stock valued at $9,724,000 after buying an additional 39,804 shares during the last quarter. Jacobs Levy Equity Management Inc. bought a new stake in Sprint Corp. during the first quarter valued at $2,897,000. TIAA CREF Investment Management LLC raised its stake in Sprint Corp. by 4.7% in the first quarter. TIAA CREF Investment Management LLC now owns 3,187,247 shares of the cell phone carrier’s stock valued at $11,092,000 after buying an additional 142,300 shares during the last quarter. Finally, NN Investment Partners Holdings N.V. raised its stake in Sprint Corp. by 2.2% in the second quarter. NN Investment Partners Holdings N.V. now owns 27,801 shares of the cell phone carrier’s stock valued at $126,000 after buying an additional 600 shares during the last quarter. Institutional investors and hedge funds own 14.91% of the company’s stock.
About Sprint Corp.
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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