According to Zacks, “Frontier Communications is nicely positioned to gain from continued growth of high-speed data and voice network. Frontier Communications is also leaving no stone unturned to derive benefits from the growing Business Service Segment, especially, the SMB segment. Also, as a part of its marketing initiatives, Frontier launched its first retail outlet in southern California which will enhance their presence in the region. However, Frontier Communications remains significantly challenged by slow economic recovery in its service territories and competes with the loss of legacy fixed telephony business to wireless and other offerings. The company expects to continue experiencing decline in wireless backhaul revenues due to customer migration to Ethernet solutions at lower price points.”
A number of other research analysts have also commented on the stock. Citigroup Inc. reduced their price target on shares of Frontier Communications Corp. from $4.00 to $3.50 and set a sell rating for the company in a research report on Friday, September 16th. Macquarie started coverage on shares of Frontier Communications Corp. in a research report on Monday, July 11th. They set an underperform rating and a $4.65 price target for the company. Wells Fargo & Co. restated an outperform rating and set a $8.75 price target on shares of Frontier Communications Corp. in a research report on Monday, September 19th. Bank of America Corp. set a $8.00 price target on shares of Frontier Communications Corp. and gave the company a buy rating in a research report on Monday, October 10th. Finally, Morgan Stanley lowered shares of Frontier Communications Corp. from an overweight rating to an equal weight rating and reduced their price target for the company from $6.00 to $5.40 in a research report on Monday, July 18th. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and nine have issued a buy rating to the company’s stock. Frontier Communications Corp. has an average rating of Buy and a consensus price target of $5.79.
Shares of Frontier Communications Corp. (NASDAQ:FTR) opened at 4.08 on Friday. Frontier Communications Corp. has a 12-month low of $3.81 and a 12-month high of $5.85. The company has a 50-day moving average price of $4.31 and a 200-day moving average price of $4.90. The firm’s market capitalization is $4.79 billion.
Frontier Communications Corp. (NASDAQ:FTR) last released its quarterly earnings results on Monday, August 1st. The company reported ($0.07) EPS for the quarter, missing analysts’ consensus estimates of ($0.03) by $0.04. The firm had revenue of $2.61 billion for the quarter, compared to analysts’ expectations of $2.75 billion. Frontier Communications Corp. had a negative net margin of 4.85% and a positive return on equity of 2.52%. The firm’s revenue for the quarter was up 90.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.03 earnings per share. Equities analysts predict that Frontier Communications Corp. will post ($0.08) EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Friday, September 30th. Stockholders of record on Thursday, September 15th were paid a dividend of $0.105 per share. This represents a $0.42 annualized dividend and a dividend yield of 10.29%. The ex-dividend date of this dividend was Tuesday, September 13th. Frontier Communications Corp.’s dividend payout ratio (DPR) is -85.71%.
Several institutional investors have recently modified their holdings of the stock. Geode Capital Management LLC increased its position in shares of Frontier Communications Corp. by 3.2% in the first quarter. Geode Capital Management LLC now owns 10,176,364 shares of the company’s stock valued at $56,777,000 after buying an additional 316,788 shares during the period. Pictet Asset Management Ltd. increased its position in shares of Frontier Communications Corp. by 6.6% in the first quarter. Pictet Asset Management Ltd. now owns 633,265 shares of the company’s stock valued at $3,426,000 after buying an additional 39,000 shares during the period. State Street Corp increased its position in shares of Frontier Communications Corp. by 1.2% in the first quarter. State Street Corp now owns 46,635,440 shares of the company’s stock valued at $260,696,000 after buying an additional 548,405 shares during the period. OMERS ADMINISTRATION Corp purchased a new position in shares of Frontier Communications Corp. during the first quarter valued at approximately $658,000. Finally, Aviva PLC increased its position in shares of Frontier Communications Corp. by 1.3% in the first quarter. Aviva PLC now owns 588,314 shares of the company’s stock valued at $3,289,000 after buying an additional 7,616 shares during the period. 65.90% of the stock is owned by hedge funds and other institutional investors.
Frontier Communications Corp. Company Profile
Frontier Communications Corporation (Frontier) offers a range of voice, data, and video services and products. The Company offers a portfolio of communications services for residential and business customers in each of its markets. The Company’s product portfolio includes Internet access, broadband-enabled services, video services and voice services.
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