Shaw Communications (NYSE:SJR) Cut 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 on Tuesday, Zacks.com reports. They currently have a $32.00 price objective on the stock. Zacks Investment Research‘s price objective would indicate a potential upside of 3.53% from the stock’s previous close.

According to Zacks, “Shaw Communications benefited from growth in the wireless segments, driven by an expanding subscriber base in second-quarter fiscal 2022. 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.”

Several other research analysts also recently commented on SJR. National Bank Financial downgraded Shaw Communications from an “outperform” rating to a “sector perform” rating in a report on Thursday, April 14th. StockNews.com downgraded Shaw Communications from a “hold” rating to a “sell” rating in a report on Thursday, April 14th. Finally, CIBC raised their price objective on Shaw Communications from C$27.00 to C$40.50 in a report on Tuesday, January 25th. Two analysts have rated the stock with a sell rating, two have assigned a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $37.67.

Shares of NYSE SJR traded up $0.03 during midday trading on Tuesday, hitting $30.91. The company’s stock had a trading volume of 9,056 shares, compared to its average volume of 310,225. The company has a current ratio of 0.87, a quick ratio of 0.82 and a debt-to-equity ratio of 0.74. The business’s 50 day moving average is $30.31 and its two-hundred day moving average is $29.74. Shaw Communications has a 12-month low of $27.62 and a 12-month high of $31.60. The firm has a market cap of $14.74 billion, a P/E ratio of 19.57 and a beta of 0.67.

Shaw Communications (NYSE:SJRGet Rating) (TSE:SJR.B) last issued its quarterly earnings results on Wednesday, April 13th. The company reported $0.39 earnings per share for the quarter, missing the consensus estimate of $0.41 by ($0.02). Shaw Communications had a return on equity of 16.57% and a net margin of 18.19%. The business had revenue of $1.36 billion during the quarter, compared to analysts’ expectations of $1.38 billion. During the same quarter in the previous year, the company posted $0.34 earnings per share. The company’s quarterly revenue was down 2.0% compared to the same quarter last year. On average, analysts predict that Shaw Communications will post 1.26 earnings per share for the current fiscal year.

Institutional investors have recently bought and sold shares of the company. Quadrant Capital Group LLC boosted its position in Shaw Communications by 16.2% in the fourth quarter. Quadrant Capital Group LLC now owns 5,892 shares of the company’s stock valued at $179,000 after buying an additional 821 shares during the last quarter. Signaturefd LLC boosted its holdings in shares of Shaw Communications by 10.1% in the 3rd quarter. Signaturefd LLC now owns 13,397 shares of the company’s stock valued at $389,000 after acquiring an additional 1,229 shares during the last quarter. BCK Capital Management LP boosted its holdings in shares of Shaw Communications by 126.3% in the 3rd quarter. BCK Capital Management LP now owns 89,050 shares of the company’s stock valued at $2,586,000 after acquiring an additional 49,700 shares during the last quarter. FIL Ltd boosted its holdings in shares of Shaw Communications by 36.6% in the 3rd quarter. FIL Ltd now owns 9,836,397 shares of the company’s stock valued at $285,944,000 after acquiring an additional 2,633,262 shares during the last quarter. Finally, Wellington Management Group LLP boosted its holdings in Shaw Communications by 23.0% during the third quarter. Wellington Management Group LLP now owns 44,840 shares of the company’s stock worth $1,303,000 after buying an additional 8,385 shares in the last quarter. 55.58% of the stock is owned by hedge funds and other institutional investors.

Shaw Communications Company Profile (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.

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