Cogeco Communications (TSE:CCA) Achieves New 52-Week High - Should You Invest?

Shares of Cogeco Communications Inc. (TSE:CCA) reached a new 52-week high during trading on Friday. The stock peaked at C$72.36 and concluded the day at C$72.13, with a trading volume of 60,570 shares. This was an increase from its previous closing price of C$71.50.

Positive Analyst Ratings

Recently, several research firms have provided updated evaluations for Cogeco Communications. On September 20, National Bankshares upgraded Cogeco’s rating from "sector perform" to "outperform" and increased the price target from C$64.00 to C$80.00. Following this, BMO Capital Markets raised their price target for the stock from C$70.00 to C$80.00. On Monday, Canaccord Genuity Group improved their rating from "hold" to "buy" and set a new price objective of C$77.00, compared to their previous target of C$65.00. Royal Bank of Canada also increased its target price for Cogeco's shares from C$76.00 to C$79.00 on October 10. Additionally, Scotiabank updated its price target from C$73.50 to C$77.50 on Monday. In total, five analysts have assigned a hold rating to the stock, five have issued buy ratings, and one analyst has given a strong buy rating. As reported by MarketBeat, Cogeco Communications has a consensus rating of "Moderate Buy" with an average target price of C$75.50.

Cogeco's Stock Metrics

The company now has a market cap of C$2.16 billion. Its price-to-earnings ratio stands at 9.12, with a price-to-earnings-growth ratio of 4.77 and a beta of 0.59. The stock has a 50-day moving average of C$68.40 and a 200-day moving average of C$60.84. Also worth noting is that the company's debt-to-equity ratio is 142.88, while both the quick ratio and current ratio are at 0.49 and 0.41, respectively.

Announced Dividend Increase

In additional news, Cogeco recently declared a quarterly dividend, set to be distributed on Thursday, November 28th. Investors on record as of that date will receive a dividend of $0.922 per share. The ex-dividend date is scheduled for November 14th. This new dividend reflects an annualized amount of $3.69, translating to a yield of 5.11%. This dividend increase follows the previous quarterly payment of $0.85. The company's dividend payout ratio is currently at 43.62%.

About Cogeco Communications

Cogeco Communications Inc. is a telecommunications corporation operating in Canada and the United States. It functions through two main segments: Canadian Telecommunications and American Telecommunications. The company provides a variety of services, including internet, video, and internet protocol (IP) telephony services, to both residential and small business customers through its advanced two-way broadband fiber networks.

Investment Considerations

Before making any investment decisions, potential investors should thoroughly consider their options. MarketBeat consistently tracks top-rated research analysts and their recommendations on various stocks. Currently, while Cogeco Communications holds a "Moderate Buy" rating, some analysts believe there are other more favorable investment opportunities available.

Cogeco, Communications, Stocks