Frontier Communications Corporation (FTR) Downgraded to “Sell” at Zacks Investment Research
Zacks Investment Research lowered shares of Frontier Communications Corporation (NASDAQ:FTR) from a hold rating to a sell rating in a research report report published on Tuesday morning.
According to Zacks, “Over the past three months, share price of Frontier Communications declined 31.2% as against the industry’s loss of 11.1%. Moreover, the company continues to suffer from the loss of legacy fixed telephony business to wireless and decline in access lines and wireless backhaul revenues due to customer migration to Ethernet solutions at lower price points. Reports about outages, bad telephone service and problems with billing raises concern. Despite such headwinds, we are impressed with Frontier Communications' focus to rake in more profits through customer retention, market share gain, new product introductions, broadband expansion and improved sales and marketing initiatives. The company is working on its growing Business Service Segment. Meanwhile, foraying into North Carolina through the rollout of ‘Vantage TV’ IPTV and broadband services also bode well.”
Other research analysts also recently issued reports about the stock. Hilliard Lyons downgraded shares of Frontier Communications Corporation from a neutral rating to an underperform rating in a research report on Wednesday, August 9th. UBS AG reissued a neutral rating and set a $15.00 price target on shares of Frontier Communications Corporation in a research note on Wednesday, August 2nd. Morgan Stanley dropped their price target on shares of Frontier Communications Corporation to $16.00 and set an equal weight rating for the company in a research note on Wednesday, August 23rd. BidaskClub lowered shares of Frontier Communications Corporation from a hold rating to a sell rating in a report on Saturday, September 16th. Finally, Royal Bank Of Canada reaffirmed a sector perform rating and issued a $16.00 price objective on shares of Frontier Communications Corporation in a research note on Tuesday, August 8th. Five equities research analysts have rated the stock with a sell rating, ten have given a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the company. The stock presently has a consensus rating of Hold and an average target price of $7.02.
Frontier Communications Corporation (NASDAQ FTR) traded down 2.3476% during mid-day trading on Tuesday, reaching $12.3042. 1,583,044 shares of the company traded hands. Frontier Communications Corporation has a one year low of $11.65 and a one year high of $65.40. The stock’s 50-day moving average price is $12.94 and its 200-day moving average price is $19.36. The firm’s market cap is $966.08 million.
Frontier Communications Corporation (NASDAQ:FTR) last issued its quarterly earnings results on Tuesday, August 1st. The utilities provider reported ($1.10) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.07) by ($0.03). The firm had revenue of $2.30 billion for the quarter, compared to analyst estimates of $2.31 billion. Frontier Communications Corporation had a negative net margin of 9.35% and a negative return on equity of 1.28%. The company’s revenue was down 11.7% compared to the same quarter last year. During the same period last year, the company earned ($0.29) EPS. Analysts forecast that Frontier Communications Corporation will post ($4.13) earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Friday, September 29th. Stockholders of record on Friday, September 15th were given a dividend of $0.60 per share. This is an increase from Frontier Communications Corporation’s previous quarterly dividend of $0.04. The ex-dividend date was Thursday, September 14th. This represents a $2.40 annualized dividend and a dividend yield of 19.05%. Frontier Communications Corporation’s dividend payout ratio is currently -16.65%.
Several institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. raised its holdings in shares of Frontier Communications Corporation by 9.9% in the second quarter. Vanguard Group Inc. now owns 116,799,968 shares of the utilities provider’s stock valued at $135,488,000 after purchasing an additional 10,474,703 shares during the last quarter. BlackRock Inc. boosted its holdings in Frontier Communications Corporation by 4,683.4% during the first quarter. BlackRock Inc. now owns 116,003,627 shares of the utilities provider’s stock worth $248,246,000 after purchasing an additional 113,578,500 shares during the last quarter. State Street Corp boosted its holdings in Frontier Communications Corporation by 14.9% during the second quarter. State Street Corp now owns 49,574,081 shares of the utilities provider’s stock worth $57,507,000 after purchasing an additional 6,445,036 shares during the last quarter. First Trust Advisors LP grew its position in Frontier Communications Corporation by 101.4% in the second quarter. First Trust Advisors LP now owns 42,741,996 shares of the utilities provider’s stock valued at $49,581,000 after purchasing an additional 21,522,621 shares in the last quarter. Finally, Bank of New York Mellon Corp grew its position in Frontier Communications Corporation by 7.4% in the second quarter. Bank of New York Mellon Corp now owns 25,636,186 shares of the utilities provider’s stock valued at $29,738,000 after purchasing an additional 1,757,905 shares in the last quarter.
About Frontier Communications Corporation
Frontier Communications Corporation (Frontier) is a provider of communications services in the United States. The Company offers a portfolio of communications services for residential and business customers. Its products and services include data and Internet services, video services, voice services, access services and customer premise equipment (CPE).
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