Consolidated Communications Holdings Inc. [CNSL] gain 59.02% so far this year. What now?

Consolidated Communications Holdings Inc. [NASDAQ: CNSL] price surged by 3.70 percent to reach at $0.22. The company report on September 18, 2020 that Consolidated Communications Announces Pricing of Senior Secured Notes.

Consolidated Communications (NASDAQ: CNSL) (“Consolidated”) announced today that its wholly-owned subsidiary, Consolidated Communications, Inc. (“CCI”), priced an offering (the “Offering”) of $750,000,000 aggregate principal amount of 6.500% senior secured notes due 2028 (the “Notes”). The Notes bear interest at a rate of 6.500% per annum, payable semi-annually on April 1 and October 1, commencing on April 1, 2021. The Notes were priced at par, which will result in total gross proceeds of $750,000,000. The aggregate offering size of $750,000,000 represents a decrease of $250,000,000 from the amount previously expected, as disclosed by Consolidated, which amount is expected to be borrowed by Consolidated pursuant to new credit facilities. The closing of the Offering is expected to occur, and the Notes are anticipated to be issued, on or about October 2, 2020, subject to customary closing conditions.

The Notes will be guaranteed by Consolidated and certain of its existing and future wholly-owned subsidiaries. Together with the proceeds from the previously-announced credit facilities that CCI intends to enter into, Consolidated intends to use the net proceeds of the Offering to refinance CCI’s outstanding 6.500% senior notes due 2022 and CCI’s existing credit facilities, and to pay the fees and expenses in connection with the previously-announced strategic investment from affiliates of Searchlight Capital Partners, L.P.

A sum of 1666052 shares traded at recent session while its average daily volume was at 446.99K shares. Consolidated Communications Holdings Inc. shares reached a high of $6.23 and dropped to a low of $5.925 until finishing in the latest session at $6.17.

The one-year CNSL stock forecast points to a potential upside of 5.08. The average equity rating for CNSL stock is currently 3.20, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on Consolidated Communications Holdings Inc. [CNSL]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CNSL shares is $6.50 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CNSL stock is a recommendation set at 3.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Wells Fargo have made an estimate for Consolidated Communications Holdings Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on April 26, 2019. While these analysts kept the previous recommendation, Guggenheim dropped their target price from $8 to $4. The new note on the price target was released on April 26, 2019, representing the official price target for Consolidated Communications Holdings Inc. stock.

The Average True Range (ATR) for Consolidated Communications Holdings Inc. is set at 0.36, with the Price to Sales ratio for CNSL stock in the period of the last 12 months amounting to 0.33. The Price to Book ratio for the last quarter was 1.20, with the Price to Cash per share for the same quarter was set at 0.65. Price to Free Cash Flow for CNSL in the course of the last twelve months was 2.92 with Quick ratio for the last quarter at 0.90.

CNSL Stock Performance Analysis:

Consolidated Communications Holdings Inc. [CNSL] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -9.13. With this latest performance, CNSL shares dropped by -23.16% in over the last four-week period, additionally plugging by 54.64% over the last 6 months – not to mention a rise of 47.26% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CNSL stock in for the last two-week period is set at 31.44, with the RSI for the last a single of trading hit 23.36, and the three-weeks RSI is set at 35.17 for Consolidated Communications Holdings Inc. [CNSL]. The present Moving Average for the last 50 days of trading for this stock 7.19, while it was recorded at 6.35 for the last single week of trading, and 5.77 for the last 200 days.

Insight into Consolidated Communications Holdings Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Consolidated Communications Holdings Inc. [CNSL] shares currently have an operating margin of +6.08 and a Gross Margin at +28.46. Consolidated Communications Holdings Inc.’s Net Margin is presently recorded at -1.56.

Return on Total Capital for CNSL is now 3.01, given the latest momentum, and Return on Invested Capital for the company is -0.78. Return on Equity for this stock declined to -5.55, with Return on Assets sitting at -0.57. When it comes to the capital structure of this company, Consolidated Communications Holdings Inc. [CNSL] has a Total Debt to Total Equity ratio set at 676.01. Additionally, CNSL Total Debt to Total Capital is recorded at 87.11, with Total Debt to Total Assets ending up at 64.40. Long-Term Debt to Equity for the company is recorded at 666.19, with the Long-Term Debt to Total Capital now at 85.85.

Reflecting on the efficiency of the workforce at the company, Consolidated Communications Holdings Inc. [CNSL] managed to generate an average of -$6,131 per employee. Receivables Turnover for the company is 10.02 with a Total Asset Turnover recorded at a value of 0.37.Consolidated Communications Holdings Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 0.90.

CNSL Stock EPS

With the latest financial reports released by the company, Consolidated Communications Holdings Inc. posted 0.06/share EPS, while the average EPS was predicted by analysts to be reported at -0.04/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 250.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CNSL. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Consolidated Communications Holdings Inc. go to 2.00%.

Consolidated Communications Holdings Inc. [CNSL] Insider Position Details

There are presently around $351 million, or 79.00% of CNSL stock, in the hands of institutional investors. The top three institutional holders of CNSL stocks are: BLACKROCK INC. with ownership of 11,632,638, which is approximately 0.284% of the company’s market cap and around 1.93% of the total institutional ownership; VANGUARD GROUP INC, holding 5,782,103 shares of the stock with an approximate value of $35.68 million in CNSL stocks shares; and DIMENSIONAL FUND ADVISORS LP, currently with $33.21 million in CNSL stock with ownership of nearly 0.681% of the company’s market capitalization.

Positions in Consolidated Communications Holdings Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 65 institutional holders increased their position in Consolidated Communications Holdings Inc. [NASDAQ:CNSL] by around 3,618,389 shares. Additionally, 78 investors decreased positions by around 3,760,504 shares, while 44 investors held positions by with 49,497,709 shares. The mentioned changes placed institutional holdings at 56,876,602 shares, according to the latest SEC report filing. CNSL stock had 16 new institutional investments in for a total of 1,403,841 shares, while 27 institutional investors sold positions of 865,565 shares during the same period.

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