Zacks Investment Research Lowers Frontier Communications (FTR) to Hold

Zacks Investment Research downgraded shares of Frontier Communications (NASDAQ:FTR) from a buy rating to a hold rating in a report released on Friday morning.

According to Zacks, “Frontier Communications aims to rake in more profits through customer retention, market share gain, new product introductions and improved sales and marketing initiatives. The company is presently focusing on cost control by bringing about productivity and customer-oriented enhancements to improve efficiencies to its daily operations. It is targeting a $500 million run rate EBITDA benefit by year-end 2020. Sustainable broadband subscriber growth supported by strong network expansion and improved pricing structure remains encouraging. However, the stock has underperformed the industry in the past year on an average. Persistent decline in access lines, loss of legacy fixed telephony business to wireless and dwindling subscriber statistics hurt the company’s growth prospects. In the last five years (2013-2017), its costs of sales have increased at a CAGR of 18.6%. High outstanding debt also remains a perennial concern for the company.”

A number of other research firms also recently weighed in on FTR. BidaskClub downgraded Frontier Communications from a sell rating to a strong sell rating in a research report on Saturday, December 8th. Morgan Stanley cut their price objective on Frontier Communications from $10.00 to $5.00 and set an equal weight rating for the company in a research report on Monday, November 19th. Wells Fargo & Co downgraded Frontier Communications from a market perform rating to an underperform rating and cut their price objective for the company from $5.00 to $1.75 in a research report on Tuesday, January 8th. Citigroup cut their price objective on Frontier Communications from $4.50 to $2.75 and set a sell rating for the company in a research report on Wednesday, November 21st. Finally, UBS Group downgraded Frontier Communications from a neutral rating to a sell rating and cut their price objective for the company from $6.00 to $3.00 in a research report on Wednesday, November 7th. Seven investment analysts have rated the stock with a sell rating, five have issued a hold rating and one has given a buy rating to the company. Frontier Communications has a consensus rating of Hold and a consensus target price of $4.64.



FTR opened at $1.96 on Friday. The company has a market capitalization of $206.88 million, a price-to-earnings ratio of -0.52 and a beta of 0.95. The company has a debt-to-equity ratio of 8.44, a current ratio of 0.49 and a quick ratio of 0.49. Frontier Communications has a 1-year low of $1.81 and a 1-year high of $11.64.

A number of institutional investors have recently bought and sold shares of the business. BlackRock Inc. increased its position in Frontier Communications by 0.5% during the fourth quarter. BlackRock Inc. now owns 16,360,108 shares of the utilities provider’s stock worth $38,937,000 after buying an additional 74,014 shares during the last quarter. Vanguard Group Inc. boosted its holdings in Frontier Communications by 21.2% during the third quarter. Vanguard Group Inc. now owns 11,355,181 shares of the utilities provider’s stock valued at $73,695,000 after acquiring an additional 1,985,632 shares during the period. Vanguard Group Inc boosted its holdings in Frontier Communications by 21.2% during the third quarter. Vanguard Group Inc now owns 11,355,181 shares of the utilities provider’s stock valued at $73,695,000 after acquiring an additional 1,985,632 shares during the period. Allianz Asset Management GmbH boosted its holdings in Frontier Communications by 924.5% during the third quarter. Allianz Asset Management GmbH now owns 1,637,164 shares of the utilities provider’s stock valued at $10,626,000 after acquiring an additional 1,477,370 shares during the period. Finally, Bank of New York Mellon Corp boosted its holdings in Frontier Communications by 30.6% during the third quarter. Bank of New York Mellon Corp now owns 1,572,919 shares of the utilities provider’s stock valued at $10,208,000 after acquiring an additional 368,710 shares during the period. 71.26% of the stock is currently owned by hedge funds and other institutional investors.

Frontier Communications Company Profile

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 broadband, Ethernet, traditional circuit-based, and voice services; and software defined wide area network, multiprotocol label switching, and time division multiplexing data transport and optical transport services to small, medium, and large enterprises, as well as advanced hardware and network solutions and services, and customer premise equipment.

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