Rogers Communications (RCI) Rating Increased 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 report published on Thursday morning. Zacks Investment Research currently has $58.00 price target on the Wireless communications provider’s stock.

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.”

Several other equities analysts have also recently weighed in on RCI. ValuEngine raised shares of Rogers Communications from a sell rating to a hold rating in a research note on Saturday, July 28th. Desjardins cut shares of Rogers Communications from a buy rating to a hold rating in a research note on Monday, October 22nd. Four equities research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. The company currently has an average rating of Hold and a consensus price target of $55.50.

Shares of RCI opened at $52.33 on Thursday. The company has a market cap of $26.94 billion, a PE ratio of 19.31, a price-to-earnings-growth ratio of 3.24 and a beta of 0.72. Rogers Communications has a twelve month low of $43.11 and a twelve month high of $54.21. The company has a debt-to-equity ratio of 1.73, a current ratio of 0.72 and a quick ratio of 0.65.

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

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

Large investors have recently added to or reduced their stakes in the stock. Cidel Asset Management Inc. grew its stake in shares of Rogers Communications by 1.4% in the third quarter. Cidel Asset Management Inc. now owns 1,217,803 shares of the Wireless communications provider’s stock valued at $62,586,000 after buying an additional 17,199 shares in the last quarter. Beutel Goodman & Co Ltd. grew its stake in shares of Rogers Communications by 9.7% in the second quarter. Beutel Goodman & Co Ltd. now owns 21,014,591 shares of the Wireless communications provider’s stock valued at $998,281,000 after buying an additional 1,854,605 shares in the last quarter. Northern Trust Corp grew its stake in shares of Rogers Communications by 7.8% in the second quarter. Northern Trust Corp now owns 440,048 shares of the Wireless communications provider’s stock valued at $20,885,000 after buying an additional 31,950 shares in the last quarter. Millennium Management LLC grew its stake in shares of Rogers Communications by 13.0% in the second quarter. Millennium Management LLC now owns 236,188 shares of the Wireless communications provider’s stock valued at $11,209,000 after buying an additional 27,200 shares in the last quarter. Finally, Cozad Asset Management Inc. acquired a new stake in Rogers Communications during the 2nd quarter valued at $267,000. 46.10% of the stock is owned by institutional investors and hedge funds.

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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