Shaw Communications (NYSE:SJR) Lowered to Sell at Zacks Investment Research

Shaw Communications (NYSE:SJRGet Rating) (TSE:SJR.B) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Wednesday, Zacks.com reports. They currently have a $30.00 price target on the stock. Zacks Investment Research‘s price objective suggests a potential upside of 6.16% from the stock’s current price.

According to Zacks, “Shaw Communications benefited from growth in the wireless segments, driven by an expanding subscriber base. Bundling of Shaw Mobile with Internet service is helping it win customers. The deployment of 700 MHz spectrum enhances customer relations by providing far-reaching coverage and stronger indoor wireless reception. Shaw continues to fortify its footprint across Canada. The launch of Fibre+ Gig Internet service, which is available to more than 99% of its residential customers, is expected to boost wireline revenues. Shaw has outperformed the industry year to date. Nevertheless, the company is battling against weakness in the wireline segment due to the attrition of video, satellite and phone subscribers. Markedly, Shaw is set to be acquired by Rogers Communications for $26 billion.”

A number of other analysts have also weighed in on the stock. National Bank Financial upgraded shares of Shaw Communications from a “sector perform” rating to an “outperform” rating in a research report on Wednesday, May 18th. CIBC raised their target price on shares of Shaw Communications from C$27.00 to C$40.50 in a research report on Tuesday, January 25th. Finally, StockNews.com upgraded shares of Shaw Communications from a “sell” rating to a “hold” rating in a research report on Friday, April 22nd. One investment analyst has rated the stock with a sell rating, two have given a hold rating and two have issued a buy rating to the stock. According to data from MarketBeat, Shaw Communications currently has a consensus rating of “Hold” and an average price target of $37.00.

Shares of NYSE SJR traded up $0.14 during trading hours on Wednesday, hitting $28.26. 9,488 shares of the stock were exchanged, compared to its average volume of 424,059. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.82 and a current ratio of 0.87. The company has a market cap of $13.48 billion, a PE ratio of 17.89 and a beta of 0.66. The company’s fifty day simple moving average is $29.81 and its two-hundred day simple moving average is $29.69. Shaw Communications has a 1-year low of $25.63 and a 1-year high of $31.60.

Shaw Communications (NYSE:SJRGet Rating) (TSE:SJR.B) last issued its earnings results on Wednesday, April 13th. The company reported $0.31 earnings per share for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.01). Shaw Communications had a net margin of 18.19% and a return on equity of 16.57%. The company had revenue of $1.36 billion during the quarter, compared to analyst estimates of $1.38 billion. During the same quarter in the prior year, the business earned $0.34 EPS. The business’s quarterly revenue was down 2.0% on a year-over-year basis. As a group, sell-side analysts expect that Shaw Communications will post 1.26 EPS for the current fiscal year.

Hedge funds have recently added to or reduced their stakes in the company. Power Corp of Canada bought a new position in Shaw Communications during the first quarter worth $54,000. PenderFund Capital Management Ltd. raised its stake in Shaw Communications by 1,666.7% during the fourth quarter. PenderFund Capital Management Ltd. now owns 3,710 shares of the company’s stock worth $142,000 after buying an additional 3,500 shares during the last quarter. Quadrant Capital Group LLC raised its stake in Shaw Communications by 16.2% during the fourth quarter. Quadrant Capital Group LLC now owns 5,892 shares of the company’s stock worth $179,000 after buying an additional 821 shares during the last quarter. Cigna Investments Inc. New bought a new position in Shaw Communications during the fourth quarter worth $205,000. Finally, Atlas Capital Advisors LLC raised its stake in Shaw Communications by 24.9% during the fourth quarter. Atlas Capital Advisors LLC now owns 6,863 shares of the company’s stock worth $208,000 after buying an additional 1,367 shares during the last quarter. 56.04% of the stock is owned by hedge funds and other institutional investors.

About Shaw Communications (Get Rating)

Shaw Communications Inc operates as a connectivity company in North America. The company operates through Wireline and Wireless segments. The company's Wireline segment provides cable telecommunications services, including video, Internet, WiFi, phone, satellite video, and data networking through a national fibre-optic backbone network to Canadian consumers, North American businesses, and public-sector entities.

Further Reading

Get a free copy of the Zacks research report on Shaw Communications (SJR)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Receive News & Ratings for Shaw Communications Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Shaw Communications and related companies with MarketBeat.com's FREE daily email newsletter.