Rogers Communications (RCI) Lifted to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of Rogers Communications (NYSE:RCI) (TSE:RCI.B) from a hold rating to a buy rating in a research note published on Friday. The brokerage currently has $60.00 price target on the Wireless communications provider’s stock.
According to Zacks, “Rogers Communications’ wireless service growth drove the top line. Growing demand for data and initiatives taken by the company to retain subscribers aided wireless service revenues in fourth-quarter 2018. Additionally, user shift toward higher-priced tiers positively impacted Internet revenues. Moreover, users will have access to higher Internet speeds with Rogers Communications’ DOCSIS technology. Further, the company’s partnership with Ericsson and University of British Columbia (UBC) to quickly bring 5G to its users is expected to drive top-line growth. Notably, its shares have outperformed the industry in the past year. However, Rogers Communications’ competitors continue to give price discounts to their users, which is hurting profitability. Moreover, continued subscriber loss in the television segment does not bode well.”
A number of other equities research analysts have also recently commented on the company. TD Securities cut Rogers Communications to a buy rating in a research report on Wednesday, February 6th. ValuEngine raised shares of Rogers Communications from a hold rating to a buy rating in a research note on Monday, February 4th. Echelon Wealth Partners reissued a buy rating on shares of Rogers Communications in a research note on Friday, January 25th. Edward Jones lowered shares of Rogers Communications from a buy rating to a hold rating and set a $52.67 price target on the stock. in a research report on Thursday, November 29th. Finally, Desjardins lowered shares of Rogers Communications from a buy rating to a hold rating in a research report on Monday, October 22nd. Five analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. Rogers Communications has an average rating of Buy and a consensus target price of $54.68.
Rogers Communications (NYSE:RCI) (TSE:RCI.B) last released its earnings results on Thursday, January 24th. The Wireless communications provider reported $1.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.81 by $0.32. Rogers Communications had a return on equity of 29.05% and a net margin of 13.63%. The firm had revenue of $3.94 billion for the quarter, compared to the consensus estimate of $3.87 billion. During the same period in the prior year, the firm earned $0.88 EPS. The firm’s revenue was up 5.5% on a year-over-year basis. Analysts anticipate that Rogers Communications will post 3.55 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Monday, April 1st. Stockholders of record on Tuesday, March 12th will be paid a dividend of $0.3762 per share. This represents a $1.50 dividend on an annualized basis and a dividend yield of 2.77%. This is a positive change from Rogers Communications’s previous quarterly dividend of $0.37. The ex-dividend date is Monday, March 11th. Rogers Communications’s payout ratio is 42.99%.
Institutional investors and hedge funds have recently modified their holdings of the business. William Blair Investment Management LLC acquired a new stake in Rogers Communications during the 3rd quarter valued at $229,495,000. Man Group plc lifted its position in Rogers Communications by 80.0% in the 3rd quarter. Man Group plc now owns 3,766,370 shares of the Wireless communications provider’s stock valued at $193,567,000 after purchasing an additional 1,673,962 shares during the last quarter. Mackenzie Financial Corp lifted its position in Rogers Communications by 26.6% in the 4th quarter. Mackenzie Financial Corp now owns 3,826,705 shares of the Wireless communications provider’s stock valued at $196,157,000 after purchasing an additional 803,916 shares during the last quarter. Toronto Dominion Bank lifted its position in Rogers Communications by 22.5% in the 3rd quarter. Toronto Dominion Bank now owns 4,291,153 shares of the Wireless communications provider’s stock valued at $221,016,000 after purchasing an additional 787,068 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA raised its position in shares of Rogers Communications by 8,693.1% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 543,236 shares of the Wireless communications provider’s stock worth $27,846,000 after buying an additional 537,058 shares in the last quarter. Institutional investors own 44.55% of the company’s stock.
About Rogers Communications
Rogers Communications Inc operates as a communications and media company in Canada. The company's Wireless segment offers wireless telecommunications services to consumers and businesses under the Rogers, Fido, and chatr brands; and wireless devices, services, and applications. This segment distributes its products through independent dealer networks, company-owned retail stores, retail chains and convenience stores, e-commerce sites, call centers and outbound telemarketing, and other distribution channels.
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