Cogeco Communications Hits New 52-Week High - Is It Time to Invest?

On Friday, shares of Cogeco Communications Inc. (TSE:CCA) reached a new 52-week high during trading, hitting a peak of C$72.36 before ending the day at C$72.13. The stock experienced significant trading activity with a volume of 60,570 shares exchanged, compared to the previous closing price of C$71.50.

Analyst Predictions for Cogeco Communications

Recently, various research firms have provided updates regarding Cogeco Communications. National Bankshares upgraded the company from a "sector perform" rating to "outperform" and raised their price target from C$64.00 to C$80.00. Meanwhile, BMO Capital Markets increased their price target from C$70.00 to C$80.00 just days later. Additionally, Canaccord Genuity Group moved shares from a "hold" rating to "buy" and set a new price objective of C$77.00, up from C$65.00. Royal Bank of Canada also adjusted their target price upward, from C$76.00 to C$79.00. Scotiabank noted a similar increase, raising their forecast from C$73.50 to C$77.50. The overall sentiment shows that five analysts recommend holding the stock, while five suggest buying it, and one analyst rates it as a strong buy. Overall, Cogeco Communications has a consensus rating of "Moderate Buy" with an average target price of C$75.50 according to data from MarketBeat.

Performance Overview

Cogeco Communications has a market capitalization of C$2.16 billion, with a price-to-earnings ratio (P/E) of 9.12, and a price-to-earnings-growth (PEG) ratio of 4.77, indicating its growth potential relative to its earnings. The stock has been performing steadily, with a 50-day moving average at C$68.40 and a 200-day moving average at C$60.84. The firm's financial ratios reveal a debt-to-equity ratio of 142.88, a quick ratio of 0.49, and a current ratio of 0.41, suggesting that the company is managing its finances within a risky balance sheet.

Increased Dividend Payout

In a recent announcement, Cogeco Communications declared a quarterly dividend set for payment on Thursday, November 28th. Shareholders of record on this date will receive a dividend of C$0.922, with an ex-dividend date scheduled for November 14th. This change reflects an annualized dividend of C$3.69, yielding approximately 5.11%. The latest dividend represents an increase from the previous quarterly payment of C$0.85 and reveals a dividend payout ratio (DPR) of 43.62%, showing the company's commitment to returning profits to shareholders.

Company Background

Cogeco Communications Inc. operates as a major telecommunications provider in both Canada and the United States. It segments its business into Canadian and American Telecommunications. The company delivers services such as internet, video, and Internet Protocol (IP)-based telephony to both residential and small business clients via its robust two-way broadband fiber networks.

Investment Considerations

If you are contemplating an investment in Cogeco Communications, it is crucial to analyze the current market trends and the growth potential indicated by recent analyst ratings. While the stock has received a “Moderate Buy” rating from several analysts, it's noteworthy that some top-rated research analysts have spotlighted five other stocks they recommend more strongly for potential investment opportunities.

Cogeco, Investing, Stocks