Shaw Communications Inc. (SJR) Stock Rating Lowered by Zacks Investment Research
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 report issued to clients and investors 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%.”
A number of other research analysts have also commented on the company. BidaskClub raised Shaw Communications from a “sell” rating to a “hold” rating in a research report on Tuesday, August 22nd. National Bank Financial lowered Shaw Communications from an “outperform market weight” rating to a “sector perform market weight” rating in a research report on Wednesday, June 28th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and three have issued a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus price target of $27.00.
Shares of Shaw Communications (NYSE SJR) opened at 23.16 on Thursday. The company’s 50-day moving average price is $22.21 and its 200 day moving average price is $21.60. The firm has a market cap of $11.43 billion, a PE ratio of 27.67 and a beta of 0.90. Shaw Communications has a 1-year low of $19.02 and a 1-year high of $23.31.
Shaw Communications (NYSE:SJR) (TSE:SJR.B) last released its quarterly earnings results on Wednesday, June 28th. The company reported $0.44 EPS for the quarter, beating analysts’ consensus estimates 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%. Shaw Communications’s quarterly revenue was up 2.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.11 EPS. On average, analysts predict that Shaw Communications will post $1.08 EPS for the current year.
Several large investors have recently made changes to their positions in the company. TD Asset Management Inc. raised its position in shares of Shaw Communications by 2.4% in the 2nd quarter. TD Asset Management Inc. now owns 14,888,198 shares of the company’s stock worth $324,315,000 after acquiring an additional 342,269 shares in the last quarter. Vanguard Group Inc. raised its position in shares of Shaw Communications by 4.9% in the 2nd quarter. Vanguard Group Inc. now owns 10,078,962 shares of the company’s stock worth $219,621,000 after acquiring an additional 468,447 shares in the last quarter. Mawer Investment Management Ltd. raised its position in shares of Shaw Communications by 1.4% in 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 in the last quarter. CIBC Asset Management Inc raised its position in shares of Shaw Communications by 57.1% in the 2nd quarter. CIBC Asset Management Inc now owns 6,970,061 shares of the company’s stock worth $151,878,000 after acquiring an additional 2,533,410 shares in the last quarter. Finally, CIBC World Markets Inc. raised its position in shares of Shaw Communications by 3.5% in the 2nd quarter. CIBC World Markets Inc. now owns 5,654,025 shares of the company’s stock worth $123,201,000 after acquiring an additional 190,230 shares in the last quarter. 51.83% of the stock is owned by hedge funds and other institutional investors.
About Shaw Communications
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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