Cogeco Communications (TSE:CCA) Reaches New 52-Week High - Is It Time to Invest?

The shares of Cogeco Communications Inc. (TSE:CCA) achieved a new 52-week high during trading on Friday, reaching a peak of C$72.36 before closing at C$72.13. In total, 60,570 shares changed hands, compared to the previous close of C$71.50.

Analysts Optimistic About Future Growth

Recently, several research firms have shared their insights on Cogeco Communications. National Bankshares upgraded the company's stock from a "sector perform" rating to "outperform" and increased its price target from C$64.00 to C$80.00 in a report published on September 20th. Similarly, BMO Capital Markets raised their price target from C$70.00 to C$80.00 on Monday. Canaccord Genuity also upgraded Cogeco Communications from a "hold" rating to a "buy" rating, raising their price target from C$65.00 to C$77.00. Royal Bank of Canada adjusted its target price for the stock from C$76.00 to C$79.00 on October 10th, while Scotiabank lifted its price expectation from C$73.50 to C$77.50. Currently, five analysts have rated the stock as a hold, five have given it a buy rating, and one analyst has assigned it a strong buy rating. According to MarketBeat data, the overall consensus gives Cogeco Communications a "Moderate Buy" rating, with an average target price of C$75.50.

Overview of Cogeco Communications Stock

Cogeco Communications has a market capitalization of C$2.16 billion. Its price-to-earnings ratio is currently 9.12, while the price-to-earnings-growth ratio stands at 4.77. The stock has a beta of 0.59, indicating lower volatility compared to the market. Currently, the 50-day moving average is C$68.40, and the 200-day moving average is C$60.84. The company's debt-to-equity ratio is 142.88, with a quick ratio of 0.49 and a current ratio of 0.41.

Dividend Increase Announced

Moreover, Cogeco Communications has recently declared a quarterly dividend that will be distributed on Thursday, November 28th. Investors with a record date on this day will receive a dividend of $0.922. The ex-dividend date is set for November 14th. This change reflects an annualized dividend of $3.69, which translates to a yield of 5.11%. This is an increase from the previous quarterly dividend of $0.85. The company's dividend payout ratio is 43.62%, suggesting a stable dividend policy.

Company Overview

Cogeco Communications Inc. operates as a telecommunications service provider in both Canada and the United States. The company has two main divisions: Canadian Telecommunications and American Telecommunications. It offers a range of services, including internet, video, and Internet Protocol (IP) based telephony, targeting both residential and small business markets through its two-way broadband fiber networks.

Investment Considerations

Before considering an investment in Cogeco Communications, it is crucial to note that while analysts have rated the stock as a "Moderate Buy," other top analysts have identified five different stocks that they believe may offer greater investment potential. It's always wise to research and analyze options before making investment decisions.

Cogeco, Stock, Analysis