Sprint (S) Rating Lowered to Hold at Zacks Investment Research

Sprint (NYSE:S) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Monday.

According to Zacks, “Sprint is coming up with new ideas to help enterprises improve their relation with employees and better serve their customers. The company has increased its fiscal 2018 adjusted EBITDA estimates on a reported basis to a range of $12-$12.5 billion, up from the previous guidance of $11.6-$12.1 billion. Sprint's network modernization and integration efforts, lucrative unlimited data plans, promotional offers in both postpaid and prepaid plans have paid off, in terms of huge subscriber addition. The stock has outperformed the industry in the past three months on an average. However, Sprint has been continually making efforts to lure customers from rival carriers by offering attractive promotional plans and lucrative discounts, which are resulting into high cash burn rate. Moreover, the company has a debt-laden balance sheet, which might adversely affect its cost of capital while trying to raise new funds for network expansion.”

A number of other analysts have also recently commented on S. ValuEngine raised Sprint from a “sell” rating to a “hold” rating in a research report on Tuesday, August 7th. Barclays initiated coverage on Sprint in a research report on Wednesday, June 27th. They set an “equal weight” rating and a $6.00 price target for the company. Wells Fargo & Co reaffirmed a “buy” rating on shares of Sprint in a research report on Thursday, June 28th. Finally, Raymond James raised Sprint from a “market perform” rating to an “outperform” rating and lifted their price target for the stock from $5.19 to $7.50 in a research report on Wednesday, June 13th. Four analysts have rated the stock with a sell rating, fourteen have given a hold rating and four have issued a buy rating to the company. Sprint currently has an average rating of “Hold” and an average target price of $5.95.

S stock traded down $0.01 on Monday, hitting $6.44. 103,422 shares of the company’s stock were exchanged, compared to its average volume of 13,575,245. Sprint has a 12-month low of $4.81 and a 12-month high of $7.55. The company has a debt-to-equity ratio of 1.28, a current ratio of 1.15 and a quick ratio of 1.10. The company has a market cap of $26.18 billion, a price-to-earnings ratio of 92.00 and a beta of 0.81.

Sprint (NYSE:S) last announced its earnings results on Wednesday, August 1st. The cell phone carrier reported $0.04 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.01) by $0.05. Sprint had a return on equity of 0.51% and a net margin of 22.73%. The firm had revenue of $8.13 billion for the quarter, compared to the consensus estimate of $8.05 billion. During the same period in the previous year, the business earned $0.05 EPS. The firm’s revenue for the quarter was down .4% on a year-over-year basis.

In other news, insider John Saw sold 260,095 shares of the business’s stock in a transaction dated Monday, August 20th. The stock was sold at an average price of $6.14, for a total value of $1,596,983.30. Following the completion of the transaction, the insider now owns 1,333,982 shares of the company’s stock, valued at approximately $8,190,649.48. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.39% of the company’s stock.

Several hedge funds have recently modified their holdings of S. Odey Asset Management Group Ltd raised its holdings in Sprint by 24.6% in the 2nd quarter. Odey Asset Management Group Ltd now owns 17,061,000 shares of the cell phone carrier’s stock worth $92,812,000 after purchasing an additional 3,366,000 shares during the period. Alpine Associates Management Inc. acquired a new position in Sprint in the second quarter valued at approximately $9,899,000. IndexIQ Advisors LLC acquired a new position in Sprint in the second quarter valued at approximately $9,637,000. First Trust Advisors LP lifted its holdings in Sprint by 114.4% in the second quarter. First Trust Advisors LP now owns 2,451,036 shares of the cell phone carrier’s stock valued at $13,334,000 after acquiring an additional 1,308,054 shares during the last quarter. Finally, Commonwealth Bank of Australia lifted its holdings in Sprint by 98.1% in the second quarter. Commonwealth Bank of Australia now owns 1,958,074 shares of the cell phone carrier’s stock valued at $10,647,000 after acquiring an additional 969,700 shares during the last quarter. 13.05% of the stock is owned by institutional investors and hedge funds.

About Sprint

Sprint Corporation, together with its subsidiaries, provides various wireless and wireline communications products and services to consumers, businesses, government subscribers, and resellers in the United States, Puerto Rico, and the United States Virgin Islands. It operates in two segments, Wireless and Wireline.

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