Shaw Communications Inc. (NYSE:SJR) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research note issued to 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.”

A number of other research analysts have also weighed in on SJR. RBC Capital Markets reissued a “sector perform” rating and set a $25.00 price target on shares of Shaw Communications in a research report on Tuesday, July 19th. BMO Capital Markets reissued a “hold” rating on shares of Shaw Communications in a research report on Monday, July 18th. Scotiabank reissued an “outperform” rating and set a $29.00 price target (down from $30.00) on shares of Shaw Communications in a research report on Tuesday, July 19th. Canaccord Genuity reissued 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. Finally, TD Securities reissued a “buy” rating and set a $28.00 price target on shares of Shaw Communications in a research report on Tuesday, July 19th. One research analyst has rated the stock with a sell rating, seven have given a hold rating and six have assigned a buy rating to the company. Shaw Communications has an average rating of “Hold” and an average target price of $25.56.

Shares of Shaw Communications (NYSE:SJR) opened at 20.11 on Tuesday. The company has a market cap of $9.72 billion, a P/E ratio of 9.55 and a beta of 0.85. The stock’s 50 day moving average is $20.14 and its 200-day moving average is $19.30. Shaw Communications has a one year low of $15.66 and a one year high of $21.41.

Shaw Communications (NYSE:SJR) last released 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 net margin of 26.04% and a return on equity of 12.21%. The firm had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.29 billion. During the same period in the previous year, the business earned $0.42 earnings per share. The firm’s revenue for the quarter was up 13.0% on a year-over-year basis. Equities research analysts forecast that Shaw Communications will post $0.87 earnings per share for the current year.

The company 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 is Tuesday, September 13th. Shaw Communications’s dividend payout ratio is currently 43.33%.

Institutional investors have recently modified their holdings of the stock. Canada Pension Plan Investment Board boosted its position in shares of Shaw Communications by 0.4% in the first quarter. Canada Pension Plan Investment Board now owns 7,272 shares of the company’s stock valued at $141,000 after buying an additional 28 shares in the last quarter. US Bancorp DE boosted its position in shares of Shaw Communications by 63.4% in the second quarter. US Bancorp DE now owns 7,867 shares of the company’s stock valued at $151,000 after buying an additional 3,053 shares in the last quarter. Cubist Systematic Strategies LLC purchased a new position in shares of Shaw Communications during the second quarter valued at approximately $216,000. Eqis Capital Management Inc. purchased a new position in shares of Shaw Communications during the second quarter valued at approximately $218,000. Finally, Caisse DE Depot ET Placement DU Quebec purchased a new position in shares of Shaw Communications during the second quarter valued at approximately $266,000. 51.85% of the stock is owned by institutional investors.

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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