Could Frontier Communications Corp. (NASDAQ:FTR) brake after this?

Frontier Communications Corporation operates as a communications company providing services primarily to rural areas and small and medium-sized towns and cities in the United States. The Company offers a variety of voice, data, Internet, and television services and products. It also provides local and long distance voice services, enhanced services, long distance network services and packages of communications services. Frontier Communications Corporation is based in Stamford, Connecticut.

Frontier Communications Corporation (NASDAQ:FTR) has been in the news for all the right reasons. Recently, Frontier Communications Corporation (NASDAQ:FTR) announced that its Board of Directors has declared a regular quarterly dividend on Frontier’s 11.125% Mandatory Convertible Preferred Stock, Series A, of $2.78125 per share, payable in cash on June 30, 2017 to holders of record at the close of business on June 15, 2017.

The Board of Directors also has declared a regular quarterly cash dividend of $0.04 per share of common stock, payable on June 30, 2017 to holders of record at the close of business on June 15, 2017

The Barchart Technical Opinion rating is a 100% Sell with a Strongest short term outlook on maintaining the current direction. Longer term, the trend strength is Maximum. Long term indicators fully support a continuation of the trend.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oid prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). The 5 day EMA 1.81 is higher than the last trade price suggesting a short term bearish pattern building up. Long term, the 50 day EMA 2.28 is also higher than the current trading price depicting a bearish trend overall..

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 27.32 suggesting a bearish price action.

Frontier Communications Corporation (NASDAQ:FTR) is all set to announce its earnings on May 02/b. As per Zack’s analyst ratings, Frontier Communications Corporation (NASDAQ:FTR) currently has an average brokerage rating of 2.36. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NASDAQ:FTR) is $3.507 with a high of $4.75 and a low of $2.3.

The Barchart Technical Opinion rating is a 100% Sell with a Strongest short term outlook on maintaining the current direction. Longer term, the trend strength is Maximum. Long term indicators fully support a continuation of the trend.

As such, while we believe Frontier Communications Corporation (NASDAQ:FTR) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

 

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Brandon Manns

Brandon Manns

We have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Compensation read disclaimer.
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