Frontier Communications (NASDAQ:FTR) Downgraded by Zacks Investment Research

Zacks Investment Research downgraded shares of Frontier Communications (NASDAQ:FTR) from a buy rating to a hold rating in a report issued on Friday morning, Zacks.com reports. The brokerage currently has $0.85 target price on the utilities provider’s stock.

According to Zacks, “Frontier Communications aims to rake in more profits through customer retention, market share gain and new product introductions. The company is focusing on cost control by bringing about productivity and customer-oriented enhancements to improve efficiencies of its daily operations. Increased traction from the deployment of PEGA-based enhancements to customer care is encouraging. It is expanding its Fiber-based broadband footprint to cater to the needs of faster Internet connectivity for customers in rural areas. However, persistent decline in access lines, loss of legacy fixed telephony business to wireless and dwindling subscriber statistics continue to hurt its growth prospects. High outstanding debt remains a perennial concern, while higher costs and operating expenses will likely prove detrimental to the margins and profitability.”

Several other research firms also recently issued reports on FTR. Guggenheim set a $1.00 price objective on shares of Frontier Communications and gave the company a sell rating in a report on Wednesday, August 7th. ValuEngine raised shares of Frontier Communications from a sell rating to a hold rating in a report on Thursday, August 1st. Royal Bank of Canada set a $1.00 price objective on shares of Frontier Communications and gave the company a hold rating in a report on Wednesday, August 7th. Finally, Cowen set a $2.00 price objective on shares of Frontier Communications and gave the company a hold rating in a report on Wednesday, August 7th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and one has assigned a buy rating to the company. Frontier Communications currently has a consensus rating of Hold and a consensus target price of $1.95.

Shares of FTR traded down $0.05 during mid-day trading on Friday, hitting $0.69. The company’s stock had a trading volume of 1,748,500 shares, compared to its average volume of 1,224,923. The company’s 50-day moving average is $0.93 and its 200-day moving average is $1.28. Frontier Communications has a 52-week low of $0.67 and a 52-week high of $4.09. The firm has a market capitalization of $77.83 million, a price-to-earnings ratio of -0.51 and a beta of 1.59. The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 10.77.

Frontier Communications (NASDAQ:FTR) last announced its quarterly earnings results on Tuesday, November 5th. The utilities provider reported ($0.15) earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of ($0.47) by $0.32. The firm had revenue of $2 billion for the quarter, compared to the consensus estimate of $2.02 billion. Frontier Communications had a negative net margin of 72.00% and a negative return on equity of 5.15%. The firm’s quarterly revenue was down 3.4% compared to the same quarter last year. During the same period in the prior year, the firm posted ($4.11) earnings per share. As a group, sell-side analysts predict that Frontier Communications will post -0.18 earnings per share for the current fiscal year.

Large investors have recently bought and sold shares of the company. United Services Automobile Association lifted its stake in shares of Frontier Communications by 29.1% in the second quarter. United Services Automobile Association now owns 62,774 shares of the utilities provider’s stock worth $110,000 after buying an additional 14,131 shares in the last quarter. World Asset Management Inc lifted its stake in shares of Frontier Communications by 35.3% in the second quarter. World Asset Management Inc now owns 66,627 shares of the utilities provider’s stock worth $117,000 after buying an additional 17,386 shares in the last quarter. State of Alaska Department of Revenue lifted its stake in shares of Frontier Communications by 126.3% in the third quarter. State of Alaska Department of Revenue now owns 81,010 shares of the utilities provider’s stock worth $70,000 after buying an additional 45,219 shares in the last quarter. Meridian Investment Counsel Inc. lifted its stake in shares of Frontier Communications by 35.4% in the second quarter. Meridian Investment Counsel Inc. now owns 92,745 shares of the utilities provider’s stock worth $162,000 after buying an additional 24,271 shares in the last quarter. Finally, Comerica Bank lifted its stake in shares of Frontier Communications by 15.2% in the third quarter. Comerica Bank now owns 144,215 shares of the utilities provider’s stock worth $151,000 after buying an additional 18,999 shares in the last quarter. 73.42% of the stock is currently owned by hedge funds and other institutional investors.

About Frontier Communications

Frontier Communications Corporation provides communications services to consumer, commercial, and wholesale customers in the United States. It offers broadband, video, voice, and other services and products through a combination of fiber and copper-based networks to consumer customers. The company also provides Ethernet and traditional circuit-based services; software defined wide area network, managed Wi-Fi and cloud IT solutions, voice and Unified Communications as a Service (UCaaS), and Voice over Internet Protocol (VoIP) services, as well as hardware and network solutions and services to small and medium business, and large enterprises.

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