BCE (NYSE:BCE) Shares Down 4.2% - What's Next?

Shares of BCE Inc. (NYSE:BCE) plummeted 4.2% on Friday, trading as low as $22.45 before closing at $22.54. During the session, 1,779,229 shares changed hands, seeing a significant drop of 49% from the average trading volume of 3,467,409 shares. The stock previously closed at $23.52.

Analysts Set New Price Targets

Recent analyst reports have discussed BCE extensively. Canaccord Genuity Group downgraded BCE from a "buy" rating to a "hold" in a note issued on November 5th. Also, Barclays reissued an "underweight" rating on January 21st. More recently, JPMorgan Chase & Co. lowered its rating from "neutral" to "underweight." Furthermore, Bank of America revised its perspective, changing its rating from "neutral" to "underperform" on January 14th. In total, four analysts have given BCE stock a sell rating, six have specified a hold rating, one has a buy rating, and another has issued a strong buy rating. Currently, the consensus rating for BCE stands at "Hold" with an average price target of $45.00.

BCE Price Performance

BCE currently has a market capitalization of $20.20 billion, a PE ratio of 316.27, and a PEG ratio of 3.94, with a beta value of 0.57. The stock's 50-day simple moving average is $24.11 and the 200-day simple moving average is $29.81. As for liquidity, BCE has a current ratio of 0.62, a quick ratio of 0.60, and a notable debt-to-equity ratio of 2.26.

BCE Cuts Dividend

Furthermore, BCE has recently announced a quarterly dividend of $0.6965, which is set to be paid on April 15th to investors on record as of March 14th. This translates into an annualized dividend of $2.79, resulting in a yield of 12.58%. However, BCE's payout ratio is exceptionally high at 4,028.57%.

Institutional Trading of BCE

There have been some notable changes in institutional and hedge fund positions concerning BCE. For instance, National Bank of Canada FI increased its holdings by 4.8% in the third quarter, owning 18,873,961 shares valued at $656,421,000 after purchasing an additional 864,472 shares. JPMorgan Chase & Co. raised its position by 25.3%, acquiring another 738,656 shares, bringing its total to 3,657,533 shares worth $127,282,000. Connor Clark & Lunn Investment Management Ltd. also boosted its position by a significant 48.7%, while BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp made an increase of 130.1%. Lastly, Barclays PLC increased its stake by 78.5% in the same period. At present, 41.46% of BCE’s stock is held by institutional investors and hedge funds.

BCE Company Profile

BCE Inc. is a prominent communications company that offers wireless, wireline, internet, and television services across Canada. The business operates through two segments: Bell Communication and Technology Services, and Bell Media. The Bell Communication and Technology Services segment delivers wireless products, data and voice services, as well as cable television services to a diverse range of customers including residential, business, government, and large enterprise clients.

Market Outlook for BCE

With the recent downturn and evolving analyst ratings, many investors are pondering whether to hold or sell BCE shares. The stock's trajectory may depend on the overall performance of the telecommunications sector, along with the company's ability to navigate challenges and capitalize on emerging opportunities.

BCE, Shares, Analysts