Shares of Sprint Corp (NYSE:S) are down close to 10% in morning trading as analysts and investors question and ponder exactly what the company has in mind when it comes to their cell tower relocation plan. Last week, the company announced that they had plans for a $1 billion cost cutting model that would involve moving their radio equipment to cell towers located on government property. This move, they claimed would save them big bucks by not having to pay the likes of Verizon and others to rent space on their towers.
Little details have been made available as of yet, just what Sprint Corp (NYSE:S) has in mind. Considering that they still have about 5-years remaining on their current leases, you would think that such cuts would not be possible for another 5-years. The lack of information supplied by Sprint has left investors questioning exactly what their plan involves and how it will effect the company. Moving cell towers is not an easy task, nor is it cheap or without problems. While Sprint certainly doesn’t lead the way when it comes to network coverage among cell carriers, a move of towers could at least temporarily cause issues for some customers, we would think.
While shares of stock trade significantly lower today, this could also be an opportunity to purchase discounted shares, as Sprint more than likely has a solid plan, just not one that they appear ready to share completely yet. If they are able to save $1 billion, while also making their network coverage more complete, this could go a long way in adding value for shareholders in the future — it’s just not know when that future will be. Could it be in 5 years from now?
The stock is down 9.89% or $0.26 following the news, hitting $2.37 per share. Approximately 7.34M shares traded hands. S shares have declined 42.86% since June 15, 2015 and are currently downtrending. It has underperformed the S&P500 by 33.99%.
From a total of 13 analysts covering Sprint Nextel Corporation (NYSE:S) stock, 3 rate it a “Buy”, 1 a “Sell”, and 9 a “Hold”. This means that 23% of the ratings are positive. The highest target price is $32 while the lowest target price is $3. The mean of all analyst targets is $4.18 which is 76.37% above today’s ($2.37) stock price. Sprint Nextel Corporation was the topic of 22 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on November 23 with a “Sector Perform” rating. Vetr upgraded shares to a”Strong-Buy” rating and a $5.17 target share price in their report from a September 21. Keefe Bruyette & Woods downgraded S stock in a recent report from October 21 to a “Mkt Perform” rating. Zacks upgraded the rating on August 9. Zacks has a “Hold” rating and a $3.75 price target on shares. Finally, DA Davidson initiated the stock with a “Neutral” rating in a report they issued on an October 1.
The institutional sentiment increased to 0.88 in Q2 2015. It’s up 0.18, from 0.7 in 2015Q2. The ratio is positive, as 48 funds sold all their Sprint Corp shares they owned while 75 reduced their positions. 34 funds bought stakes while 74 increased their total positions. Institutions now own 508.83 million shares which is 15.12% less than the previous share count of 599.46 million in 2015Q2.
Mig Capital Llc holds 5.23% of its total portfolio in Sprint Corp, equating to 5.65 million shares. Litespeed Management L.L.C. owns 9.44 million shares representing 4.47% of their total US portfolio. Moreover, Nevsky Capital Llp has 3.44% of their total portfolio invested in the company, equating to 5.20 million shares. The Hong Kong-based Parametrica Management Ltd has a total of 3.01% of their portfolio invested in the stock. Hoertkorn Richard Charles, a California-based fund reported 742,615 shares owned.
Since February 27, 2015, the stock had 11 buys, and 1 sale for a total of $713.68 million in net activity. Softbank Group Corp bought 14.53M shares worth $60.60M. Jones Jaime sold 38,879 shares worth $183,548. Wunsch Charles R sold 121,411 shares worth $573,093. Euteneuer Joseph J bought 3,600 shares worth $18,180. The insider Hallock Jeffrey D sold 54,792 shares worth $288,819.
Sprint Corporation is a holding company. The company has a market cap of $9.44 billion. The Company, along with its subsidiaries is a wireless communications firm offering a range of wireless and wireline communications services and products. It currently has negative earnings. The Firm operates in two divisions: Wireless and Wireline.