Zacks Investment Research Downgrades Shaw Communications Inc. (SJR) to Hold
Shaw Communications Inc. (NYSE:SJR) (TSE:SJR.B) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Thursday.
According to Zacks, “Shaw Communications completed the sale of its data center operations – ViaWest to Peak 10 Holding Corp. and the purchase of wireless spectrums from Quebecor Media. The company’s rating outlook upgradation by Moody’s Investor Services was a major positive. Massive growth of cable TV subscribers from its Consumer and Wireless divisions marks a major gain for the company. The company has placed itself as a pure-play Canadian telecom company with the divesture of its arm, Shaw Media to Corus Entertainment. However, the company operates in a highly competitive Canadian wireless market. The accumulating debt and decreasing cash flows is likely to escalate expenses going ahead. Rolling out of new brands and advertising promotion also raises expenses, which may impact margins moving ahead. On a year-to-date basis, the stock price grew 14.2% as against the industry's growth of 15.8%.”
SJR has been the subject of several other reports. BidaskClub lowered Shaw Communications from a “buy” rating to a “hold” rating in a research note on Wednesday, July 12th. National Bank Financial lowered Shaw Communications from an “outperform market weight” rating to a “sector perform market weight” rating in a research note on Wednesday, June 28th. One analyst has rated the stock with a sell rating, five have issued a hold rating and three have issued a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and an average price target of $27.00.
Shares of Shaw Communications (SJR) traded up 0.31% during mid-day trading on Thursday, reaching $22.97. The company’s stock had a trading volume of 90,564 shares. The company has a market cap of $11.33 billion, a PE ratio of 27.44 and a beta of 0.90. Shaw Communications has a 52-week low of $19.02 and a 52-week high of $23.31. The company has a 50-day moving average price of $22.21 and a 200 day moving average price of $21.60.
Shaw Communications (NYSE:SJR) (TSE:SJR.B) last posted its quarterly earnings data on Wednesday, June 28th. The company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.25 by $0.19. The business had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.32 billion. Shaw Communications had a return on equity of 9.31% and a net margin of 10.01%. The company’s revenue for the quarter was up 2.8% on a year-over-year basis. During the same period last year, the company earned $0.11 EPS. Equities analysts expect that Shaw Communications will post $1.09 earnings per share for the current year.
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Hedge funds have recently modified their holdings of the stock. OMERS ADMINISTRATION Corp bought a new stake in shares of Shaw Communications during the 2nd quarter worth approximately $2,283,000. Mawer Investment Management Ltd. lifted its stake in shares of Shaw Communications by 1.4% during the 2nd quarter. Mawer Investment Management Ltd. now owns 9,508,434 shares of the company’s stock worth $207,499,000 after acquiring an additional 133,961 shares during the last quarter. State of Wisconsin Investment Board lifted its stake in shares of Shaw Communications by 1.4% during the 2nd quarter. State of Wisconsin Investment Board now owns 309,225 shares of the company’s stock worth $6,736,000 after acquiring an additional 4,412 shares during the last quarter. Marshall Wace North America L.P. lifted its stake in shares of Shaw Communications by 31.7% during the 2nd quarter. Marshall Wace North America L.P. now owns 31,715 shares of the company’s stock worth $698,000 after acquiring an additional 7,639 shares during the last quarter. Finally, Mn Services Vermogensbeheer B.V. bought a new stake in shares of Shaw Communications during the 2nd quarter worth approximately $1,481,000. 51.83% of the stock is owned by hedge funds and other institutional investors.
Shaw Communications Company Profile
Shaw Communications Inc (Shaw) is a diversified connectivity provider. The Company operates through four divisions: Consumer, Wireless, Business Network Services and Business Infrastructure Services. Under the Consumer division, the Company offers Cable telecommunications and Satellite video services to residential customers.
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