Cogeco Communications (TSE:CCA) Share Price Passes Above 200-Day Moving Average - Should You Sell?

On Friday, shares of Cogeco Communications Inc. (TSE:CCA) crossed the important threshold of its 200-day moving average. The 200-day moving average is currently set at C$67.04, with the share price reaching as high as C$67.24 during trading. At the end of the trading session, the stock was valued at C$65.77, with a total trading volume of 85,607 shares.

Price Target Changes from Analysts

Various research analysts have made recent comments regarding the shares of Cogeco Communications. BMO Capital Markets recently increased their target price from C$70.00 to C$80.00 as of November 4th. Conversely, Scotiabank reduced their price target from C$77.50 to C$75.50 on January 15th. Similarly, Canaccord Genuity elevated Cogeco Communications from a "hold" rating to a "buy" rating, raising their price target from C$65.00 to C$77.00 on the same day. TD Securities also revised their target prices upward from C$85.00 to C$89.00. Additionally, CIBC lowered their target price from C$73.00 to C$71.00. In total, three analysts have given the stock a hold rating, while four have rated it a buy, and one has a strong buy recommendation. According to MarketBeat.com, Cogeco Communications enjoys an average analyst rating of "Moderate Buy" and a consensus price target of C$76.17.

Stock Performance Overview

Cogeco Communications has shown varied financial metrics: its debt-to-equity ratio stands at 159.35, with a current ratio of 0.37 and a quick ratio of 0.49. The stock also presents a 50-day simple moving average of C$64.75 alongside the previously mentioned 200-day moving average of C$67.06. The company's market capitalization is C$2.76 billion, with a price-to-earnings (P/E) ratio of 7.96, a price/earnings to growth (PEG) ratio of 4.77, and a beta value of 0.59, indicating relatively lower volatility compared to the broader market.

Dividend Information

Recently, Cogeco Communications announced a quarterly dividend that was paid on February 10th. Shareholders recorded on that date received a dividend of C$0.922 per share, which translates to an annualized dividend of C$3.69, yielding approximately 5.61%. The ex-dividend date was set for January 27th. The company's dividend payout ratio currently stands at 41.40%.

About Cogeco Communications

Cogeco Communications Inc. operates as a telecommunications company serving both Canada and the United States. It has two distinct segments: Canadian Telecommunications and American Telecommunications. The firm provides a variety of services including internet access, video content, and Internet Protocol (IP) telephony services, catering to residential clients and small businesses via its two-way broadband fiber networks.

Considering Your Investment Options

If you are contemplating an investment of $1,000 in Cogeco Communications, it is important to consider the broader market. While the stock currently holds a Moderate Buy rating, analysts at top research firms have identified five alternative stocks that they believe offer better potential for returns. Investors might wish to research those recommendations before making a decision related to Cogeco Communications.

Cogeco, Stocks, Market