Shaw Communications (SJR) Stock Rating Upgraded by Zacks Investment Research

Zacks Investment Research upgraded shares of Shaw Communications (NYSE:SJR) (TSE:SJR.B) from a hold rating to a buy rating in a report published on Tuesday. They currently have $22.00 price objective on the stock.

According to Zacks, “Shaw Communications continues to benefit from strong wireless business primarily due to increase in subscriber base. Additionally, higher average revenue per unit (ARPU) is also aiding the wireless growth. This momentum is expected to continue as the company may benefit from an increasing data-driven environment. Moreover, robust performance by the company’s wireless operations that cover almost half of the Canadian population are expected to boost the top line. Further, we are bullish about Shaw Communications’ initiative to deploy 700 MHz and 2500 MHz spectrum, which further improves the network quality. Notably, shares have outperformed the industry over the past year. However, continuing losses in the wireline segment is expected to hurt top-line growth. Moreover, customers’ shift to lower margin video packages is also expected to hurt top-line growth on a year-over-year basis.”

A number of other research firms have also weighed in on SJR. ValuEngine raised Shaw Communications from a sell rating to a hold rating in a research note on Monday, October 22nd. Canaccord Genuity lowered Shaw Communications from a buy rating to a hold rating in a research note on Thursday, October 25th. Finally, Desjardins raised Shaw Communications from a hold rating to a buy rating in a research note on Tuesday, December 18th. Three investment analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. The stock currently has an average rating of Buy and an average price target of $26.00.

NYSE:SJR opened at $19.69 on Tuesday. Shaw Communications has a 52-week low of $17.50 and a 52-week high of $22.12. The company has a debt-to-equity ratio of 0.72, a current ratio of 0.64 and a quick ratio of 0.57. The stock has a market cap of $9.51 billion, a price-to-earnings ratio of 16.69, a P/E/G ratio of 3.75 and a beta of 0.86.

Shaw Communications (NYSE:SJR) (TSE:SJR.B) last released its quarterly earnings results on Thursday, October 25th. The company reported $0.30 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.27 by $0.03. The business had revenue of $1.02 billion during the quarter, compared to analyst estimates of $1.02 billion. Shaw Communications had a return on equity of 12.90% and a net margin of 1.04%. Equities research analysts predict that Shaw Communications will post 1.04 EPS for the current year.

The firm also recently disclosed a monthly dividend, which will be paid on Wednesday, January 30th. Stockholders of record on Tuesday, January 15th will be paid a $0.0754 dividend. This represents a $0.90 dividend on an annualized basis and a dividend yield of 4.59%. The ex-dividend date of this dividend is Monday, January 14th. Shaw Communications’s dividend payout ratio (DPR) is 75.42%.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Tower Research Capital LLC TRC purchased a new stake in shares of Shaw Communications in the second quarter worth about $137,000. Riverhead Capital Management LLC lifted its position in shares of Shaw Communications by 69.9% in the third quarter. Riverhead Capital Management LLC now owns 7,983 shares of the company’s stock worth $154,000 after buying an additional 3,283 shares in the last quarter. Lenox Wealth Management Inc. purchased a new stake in shares of Shaw Communications in the third quarter worth about $187,000. US Bancorp DE lifted its position in shares of Shaw Communications by 65.7% in the second quarter. US Bancorp DE now owns 10,394 shares of the company’s stock worth $212,000 after buying an additional 4,121 shares in the last quarter. Finally, Verition Fund Management LLC purchased a new stake in shares of Shaw Communications in the third quarter worth about $233,000. 53.66% of the stock is owned by hedge funds and other institutional investors.

About Shaw Communications

Shaw Communications Inc operates as a connectivity company in North America. The company operates through Wireline and Wireless segments. The Wireline segment provides broadband Internet, Shaw Go WiFi, video, and digital phone services to residential customers; and Internet, data, WiFi, digital phone, and video services to business customers.

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