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

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Rogers Communications (NYSE:RCI) (TSE:RCI.B) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Wednesday.

According to Zacks, “Rogers Communications continues to benefit from increasing Internet user base and solid subscriber gain in the wireless segment. While lower postpaid churn rate aided subscriber growth, rapid adoption in Ignite Gigabit service drove Internet user installed base. Moreover, Rogers Communications continues to expand LTE coverage that may increase user base eventually driving revenues. Further, integration of Ignite TV with streaming services like Netflix , YouTube and Amazon’s Prime is expected to drive growth in the near future. Shares have outperformed the industry on a year-to-date basis. However, intense competition in the wireless and cable TV industry is an overhang. Moreover, heavy investments required in new TV programs and channels may drag profitability in the near term.”

RCI has been the subject of several other reports. Desjardins cut shares of Rogers Communications from a “buy” rating to a “hold” rating in a research note on Monday, October 22nd. Edward Jones cut shares of Rogers Communications from a “buy” rating to a “hold” rating and set a $52.67 target price for the company. in a research note on Thursday, November 29th. Six investment analysts have rated the stock with a hold rating, The stock presently has an average rating of “Hold” and an average price target of $54.89.

RCI traded up $0.18 during trading on Wednesday, hitting $52.68. 7,983 shares of the company traded hands, compared to its average volume of 342,193. The stock has a market capitalization of $26.91 billion, a price-to-earnings ratio of 19.49, a PEG ratio of 3.23 and a beta of 0.74. Rogers Communications has a 1 year low of $43.11 and a 1 year high of $54.83. The company has a debt-to-equity ratio of 1.73, a quick ratio of 0.65 and a current ratio 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 earnings per share for the quarter, beating the Thomson Reuters’ 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%. On average, equities research analysts forecast that Rogers Communications will post 3.23 earnings per share for the current year.

Several large investors have recently modified their holdings of RCI. Raymond James Financial Services Advisors Inc. purchased a new position in shares of Rogers Communications in the 2nd quarter worth $287,000. Bank of New York Mellon Corp grew its stake in shares of Rogers Communications by 0.5% in the 2nd quarter. Bank of New York Mellon Corp now owns 386,615 shares of the Wireless communications provider’s stock worth $18,349,000 after buying an additional 2,042 shares in the last quarter. Bollard Group LLC grew its stake in shares of Rogers Communications by 10.8% in the 2nd quarter. Bollard Group LLC now owns 58,822 shares of the Wireless communications provider’s stock worth $2,792,000 after buying an additional 5,710 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Rogers Communications by 3.6% in the 2nd quarter. Dimensional Fund Advisors LP now owns 204,553 shares of the Wireless communications provider’s stock worth $9,708,000 after buying an additional 7,177 shares in the last quarter. Finally, Great West Life Assurance Co. Can grew its stake in shares of Rogers Communications by 0.6% in the 2nd quarter. Great West Life Assurance Co. Can now owns 5,578,706 shares of the Wireless communications provider’s stock worth $265,845,000 after buying an additional 33,314 shares in the last quarter. 44.80% of the stock is owned by institutional investors and hedge funds.

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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