Frontier Communications Corp. (NASDAQ:FTR) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Friday.
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 equities analysts have also recently issued reports on FTR. Bank of America Corp. set a $8.00 price objective on Frontier Communications Corp. and gave the company a “buy” rating in a report on Monday, October 10th. Jefferies Group lowered their target price on Frontier Communications Corp. from $6.00 to $5.00 and set a “buy” rating for the company in a report on Tuesday, October 11th. Wells Fargo & Co. reiterated an “outperform” rating and issued a $8.75 target price on shares of Frontier Communications Corp. in a report on Monday, September 19th. Citigroup Inc. lowered their target price on Frontier Communications Corp. from $4.00 to $3.50 and set a “sell” rating for the company in a report on Friday, September 16th. Finally, Macquarie upgraded Frontier Communications Corp. from an “underperform” rating to a “neutral” rating in a report on Tuesday, September 6th. One research analyst has rated the stock with a sell rating, four have issued a hold rating and nine have issued a buy rating to the stock. The stock has a consensus rating of “Buy” and a consensus price target of $5.79.
Shares of Frontier Communications Corp. (NASDAQ:FTR) opened at 3.90 on Friday. Frontier Communications Corp. has a 12-month low of $3.81 and a 12-month high of $5.85. The stock’s market capitalization is $4.57 billion. The firm’s 50-day moving average is $4.32 and its 200 day moving average is $4.91.
Frontier Communications Corp. (NASDAQ:FTR) last released its quarterly earnings data on Monday, August 1st. The company reported ($0.07) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of ($0.03) by $0.04. Frontier Communications Corp. had a positive return on equity of 2.52% and a negative net margin of 4.85%. The firm earned $2.61 billion during the quarter, compared to the consensus estimate of $2.75 billion. During the same period in the previous year, the firm earned $0.03 EPS. The business’s revenue was up 90.6% compared to the same quarter last year. On average, equities research analysts forecast that Frontier Communications Corp. will post ($0.08) EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which was paid on Friday, September 30th. Stockholders of record on Thursday, September 15th were issued a $0.105 dividend. This represents a $0.42 dividend on an annualized basis and a dividend yield of 10.77%. The ex-dividend date was Tuesday, September 13th. Frontier Communications Corp.’s dividend payout ratio is presently -85.71%.
Several hedge funds and other institutional investors have recently made changes to their positions in FTR. Vanguard Group Inc. raised its position in shares of Frontier Communications Corp. by 4.2% in the second quarter. Vanguard Group Inc. now owns 113,217,359 shares of the company’s stock worth $559,294,000 after buying an additional 4,580,840 shares in the last quarter. State Street Corp raised 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 worth $260,696,000 after buying an additional 548,405 shares in the last quarter. FMR LLC raised its position in shares of Frontier Communications Corp. by 11.9% in the second quarter. FMR LLC now owns 33,237,126 shares of the company’s stock worth $164,192,000 after buying an additional 3,526,930 shares in the last quarter. BlackRock Institutional Trust Company N.A. raised its position in shares of Frontier Communications Corp. by 0.8% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 32,695,065 shares of the company’s stock worth $161,514,000 after buying an additional 262,435 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its position in shares of Frontier Communications Corp. by 13.7% in the second quarter. Dimensional Fund Advisors LP now owns 29,978,633 shares of the company’s stock worth $148,084,000 after buying an additional 3,606,058 shares in the last quarter. 65.90% of the stock is currently owned by institutional investors and hedge funds.
About Frontier Communications Corp.
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.