According to Zacks, “CenturyLink is facing mounting competitive pressure. The company has decided to cut 8% of its labor force which accounts to almost 3,000 to 3,500 workers losing their jobs. Moreover, loss of high-speed broadband subscribers and falling low-bandwidth data services revenues raise concern. Further, intensifying competition, federal regulations and the constant need to upgrade technology remain potent headwinds. However, CenturyLink’s Prism TV services are doing considerably well and should bring in substantial revenues. Meanwhile, the company plans to launch its 17 Channel over the top (OTT) services in the beginning of 2017. CenturyLink’s investment in the fiber-to-the-tower (FTTT) has expanded its fiber-based backhaul services.”
CTL has been the subject of a number of other research reports. Macquarie assumed coverage on shares of CenturyLink in a report on Monday, July 11th. They issued a neutral rating and a $31.00 price objective for the company. Vetr raised shares of CenturyLink from a hold rating to a buy rating and set a $29.33 price target for the company in a research note on Wednesday, August 31st. Jefferies Group reissued a sell rating on shares of CenturyLink in a research note on Friday, September 2nd. RBC Capital Markets reissued a sector perform rating and issued a $31.00 price target (up previously from $29.00) on shares of CenturyLink in a research note on Wednesday, August 10th. Finally, Morgan Stanley cut shares of CenturyLink from an equal weight rating to an underweight rating and dropped their price target for the company from $31.00 to $27.00 in a research note on Monday, July 18th. Three investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and two have assigned a buy rating to the stock. The company currently has a consensus rating of Hold and an average price target of $28.37.
Shares of CenturyLink (NYSE:CTL) traded down 0.646% during trading on Tuesday, reaching $26.905. 1,062,313 shares of the company were exchanged. The firm has a 50-day moving average price of $27.99 and a 200-day moving average price of $29.27. The stock has a market capitalization of $14.69 billion, a P/E ratio of 15.064 and a beta of 0.80. CenturyLink has a 1-year low of $21.94 and a 1-year high of $32.94.
CenturyLink (NYSE:CTL) last released its quarterly earnings data on Wednesday, August 3rd. The company reported $0.63 EPS for the quarter, beating the Zacks’ consensus estimate of $0.59 by $0.04. The company earned $440 billion during the quarter, compared to the consensus estimate of $4.39 billion. CenturyLink had a net margin of 5.47% and a return on equity of 11.02%. CenturyLink’s quarterly revenue was down .5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.55 EPS. Equities research analysts predict that CenturyLink will post $2.53 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Friday, September 16th. Shareholders of record on Friday, September 2nd were given a $0.54 dividend. The ex-dividend date of this dividend was Wednesday, August 31st. This represents a $2.16 annualized dividend and a yield of 7.98%. CenturyLink’s dividend payout ratio is presently 120.67%.
In other CenturyLink news, Director Harvey P. Perry sold 20,000 shares of the firm’s stock in a transaction that occurred on Wednesday, July 13th. The shares were sold at an average price of $31.00, for a total value of $620,000.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 0.61% of the stock is currently owned by company insiders.
A number of institutional investors have recently modified their holdings of CTL. Northwestern Mutual Investment Management Company LLC boosted its position in shares of CenturyLink by 0.3% in the second quarter. Northwestern Mutual Investment Management Company LLC now owns 20,832 shares of the company’s stock valued at $604,000 after buying an additional 65 shares in the last quarter. Washington Trust Bank boosted its position in shares of CenturyLink by 1.6% in the third quarter. Washington Trust Bank now owns 4,672 shares of the company’s stock valued at $128,000 after buying an additional 75 shares in the last quarter. Synovus Financial Corp boosted its position in shares of CenturyLink by 0.5% in the second quarter. Synovus Financial Corp now owns 14,707 shares of the company’s stock valued at $429,000 after buying an additional 76 shares in the last quarter. Investors Asset Management of Georgia Inc. GA ADV boosted its position in shares of CenturyLink by 0.7% in the second quarter. Investors Asset Management of Georgia Inc. GA ADV now owns 17,249 shares of the company’s stock valued at $500,000 after buying an additional 125 shares in the last quarter. Finally, Carroll Financial Associates Inc. boosted its position in shares of CenturyLink by 2.1% in the second quarter. Carroll Financial Associates Inc. now owns 10,087 shares of the company’s stock valued at $292,000 after buying an additional 204 shares in the last quarter. 73.33% of the stock is owned by institutional investors.
CenturyLink Company Profile
CenturyLink, Inc is an integrated communications company. The Company is engaged in providing an array of communications services to residential and business customers. The Company’s segments include Business and Consumer. Its communications services include local and long-distance voice, high-speed Internet, Multi-Protocol Label Switching (MPLS), private line (including special access), data integration, Ethernet, colocation, managed hosting (including cloud hosting), network, public access, video, wireless and other ancillary services.
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