Rogers Communications (RCI) Downgraded to Hold at Zacks Investment Research

Zacks Investment Research cut shares of Rogers Communications (NYSE:RCI) (TSE:RCI.B) from a buy rating to a hold rating in a report issued on Tuesday morning.

According to Zacks, “Rogers Communications’ is benefiting from solid subscriber gain in the wireless segment and increasing Internet user count. Management stated that postpaid churn rate in the wireless segment declined to lowest level since 2009. The Ignite Gigabit service has also gained rapid traction driving Internet user installed base. Moreover, an improved cost structure drove profitability. Based on the strong results, management raised adjusted EBITDA and free cash flow full-year guidance. Notably, shares have outperformed the industry on a year-to-date basis. Rogers Communications continues to expand LTE coverage that will expand user base eventually driving revenues. Moreover, integration of Ignite TV with streaming services like Netflix, YouTube and Amazon’s Prime is expected to drive growth in the near future.”

RCI has been the topic of several other research reports. Desjardins cut shares of Rogers Communications from a buy rating to a hold rating in a research report on Monday, October 22nd. ValuEngine raised shares of Rogers Communications from a sell rating to a hold rating in a research report on Saturday, July 28th. Four equities research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company’s stock. Rogers Communications presently has a consensus rating of Hold and a consensus price target of $55.50.

Rogers Communications stock opened at $52.33 on Tuesday. Rogers Communications has a 52 week low of $43.11 and a 52 week high of $54.21. The company has a current ratio of 0.72, a quick ratio of 0.65 and a debt-to-equity ratio of 1.73. The company has a market cap of $27.16 billion, a price-to-earnings ratio of 19.31, a PEG ratio of 3.26 and a beta of 0.72.

Rogers Communications (NYSE:RCI) (TSE:RCI.B) last posted its earnings results on Friday, October 19th. The Wireless communications provider reported $0.93 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.88 by $0.05. Rogers Communications had a net margin of 13.34% and a return on equity of 29.37%. The firm had revenue of $2.88 billion for the quarter, compared to analysts’ expectations of $2.91 billion. As a group, sell-side analysts expect that Rogers Communications will post 3.23 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 3rd. Shareholders of record on Tuesday, December 11th will be given a dividend of $0.3695 per share. The ex-dividend date of this dividend is Monday, December 10th. This represents a $1.48 annualized dividend and a dividend yield of 2.82%. This is a boost from Rogers Communications’s previous quarterly dividend of $0.37. Rogers Communications’s dividend payout ratio (DPR) is currently 54.24%.

Several institutional investors have recently bought and sold shares of RCI. William Blair Investment Management LLC bought a new position in shares of Rogers Communications during the 3rd quarter worth approximately $229,495,000. Beutel Goodman & Co Ltd. raised its holdings in shares of Rogers Communications by 9.7% in the 2nd quarter. Beutel Goodman & Co Ltd. now owns 21,014,591 shares of the Wireless communications provider’s stock worth $998,281,000 after purchasing an additional 1,854,605 shares during the period. Man Group plc raised its holdings in shares of 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 worth $193,567,000 after purchasing an additional 1,673,962 shares during the period. Toronto Dominion Bank raised its holdings in shares of 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 worth $221,016,000 after purchasing an additional 787,068 shares during the period. Finally, Marshall Wace LLP bought a new stake in shares of Rogers Communications in the 2nd quarter worth approximately $35,059,000. 46.10% of the stock is currently owned by hedge funds and other institutional investors.

Rogers Communications Company Profile

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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