Sprint Corp (S) Confirms At Least 2,500 Job Cuts

Share
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  

In an effort to get a better grip on their expenses, Sprint Corp (NYSE:S) today confirmed that they have indeed made numerous job cuts. According to the company, at least 2,500 jobs have been eliminated at six of their customer care centers. Just under 2,000 of these jobs come from the customer care division, while approximately 829 jobs were cut at the company’s Overland Park headquarters alone.

The cuts come as the company looks to reduce spending by as much as $2.5 million across the entire company. In total, since 2014, Sprint Corp (NYSE:S) has reduced their workforce by approximately 6,200 individuals.

“Sprint is in the middle of a multi-year turnaround strategy. We are radically transforming how we do business and are laser-focused on creating a superior network, being the price leader in the wireless industry and providing a positive customer experience. We are making progress and our business is heading in the right direction,” Michelle Boyd, a Sprint spokeswoman said in an e-mail.

The stock is down 3.50% or $0.1 following the news, hitting $2.76 per share. About 19.00 million shares traded hands or 6.92% up from the average. S has declined 39.45% since June 18, 2015 and is downtrending. It has underperformed the S&P500 by 30.58%.

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 51.45% above today’s ($2.76) 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 improved, 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 14.53 million shares worth $60.60 million. 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 $11.39 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.