DORCHESTER WEALTH MANAGEMENT Co, an institutional investor, recently reduced its holdings in BCE Inc. (NYSE:BCE) (TSE:BCE) by 5.2% in the fourth quarter, according to the company’s latest 13F filing with the Securities and Exchange Commission. The reduction led to a sale of 14,794 shares from the utilities provider’s stock during that period. Despite this development, BCE still accounts for approximately 2.8% of DORCHESTER WEALTH MANAGEMENT Co’s investment portfolio, making it the investor’s fifth largest position.
BCE Inc., a telecommunications and media company, provides communication services to residential, business, and wholesale customers primarily through its Bell Wireless, Bell Wireline and Bell Media segments. The Bell Wireless segment offers integrated digital wireless voice and data communications products and services for both residential and business clients.
Shares of NYSE:BCE began trading at $48.07 on Friday with a market capitalization of $43.85 billion. With a PE ratio of 20.81, a price-to-earnings-growth ratio of 5.87 and a beta of 0.60; the firm has seen better days as both its high ($59.34) and low ($39.88) indicate concerning inclinations in shareholder prospects over the past year.
Additionally noteworthy is BCE Inc.’s debt-to-equity ratio of 1.49; which positions them somewhat higher than other companies in this sector – not necessarily reassuring shareholders about their financial stability going forward.
Furthermore given things like current ratios listed at 0.57 levels along with quick ratios at just above its peers’ benchmarks (
e.g., Apple current ratio >1; quick ratios also >1), investors may have some reservations as they assess how much pessimism lies ahead for one of Canada’s largest carriers.
DORCHESTER WEALTH MANAGEMENT Co’s slightly adjusted positioning of its holdings in BCE Inc. is one that may not have a significant impact on BCE’s immediate future; however, given that the investor chose to reduce this position whilst also placing it as its fifth largest portfolio play simultaneously serves to provide a backdrop of uncertainty in the minds of the investor community as to whether or not they too should mirror this attitude.
Hedge Funds and Analyst Reports Impacting BCE Inc.: Recent Activity and Projections
BCE Inc.: A Look at Recent Hedge Fund Activity and Analyst Reports
In recent weeks, hedge funds and other institutional investors have been making changes to their positions in telecommunications and media company, BCE Inc. (NYSE:BCE) (TSE:BCE). Caisse DE Depot ET Placement DU Quebec increased its stake in BCE by 53.5% in the first quarter, with a current ownership of 13,375,600 shares valued at 742,107,000 USD. Vanguard Group also increased its position in BCE by 3.9%, which now owns 13,200,273 shares worth 553,619,000 USD.
Toronto Dominion Bank raised its shareholding by 13.3% during the third quarter and now holds 10,224,429 shares of BCE’s stock worth $469,861,000. National Bank of Canada FI’s holding was boosted by 31.2% in the third quarter; it now owns 6,302,998 shares worth $263,569,000 while Cullen Capital Management LLC’s holdings increased by 2.1% for a total of 5,568,231 shares worth $233,532m.
Recent reports from several analysts have been released as well regarding the telecom company. National Bank Financial downgraded BCE’s share prognosis from “outperform market weight” rating to “sector perform market weight” on Thursday last week because several risks are emerging that could affect its strategy positively such as security breaches or isolationism measures implemented worldwide.
Barclays also lowered the target price for BCE from $48 to $47 per share with an equal weight rating on Monday this week while StockNews.com assumed coverage on March16 with a “hold” rating.
BMO Capital Markets decreased their target CCS target price for BCE from CAD66 to CAD64 on February3 Similarly CIBC lifted their price target on January12 up to CAD64.
Five analysts have issued a hold recommendation while only one analyst has given BCE a buy rating. As reported by Bloomberg, BCE currently has a consensus rating of “Hold” and an average target price of $63.53.
BCE is a telecommunications and media firm that provides communication solutions to businesses, residential, and wholesale customers through various platforms. It operates under three segments such as Bell Wireless, Bell Wireline, and Bell Media. Its digital wireless voice and data products are offered to residential and business customers in the Bell Wireless segment.
BCE achieved $4.74bn revenue figures for the first quarter this financial year amid expectations. The company had reported $0.53 earnings per share (EPS) for the quarter matching consensus estimates at that time with a net profit margin of 11.85% and a return on equity (ROE) 16 .03%. Industry analysts predict the firm will report 2.38 EPS during the current fiscal year.
Commenting on dividend payout ratios, BCE announced recently its quarterly dividend payment which would be paid out on April15th to investors who were still listed as owners on March15; it was increased from $0.68 to $0.713 per share.