Windstream stock fell over 23% last week
Shares of Windstream Holdings (WIN) fell 23.5% in the week that ended on July 20. The stock closed trading at $3.46, 1.2% above its 52-week low of $3.42 and 83% below its 52-week high of $20.20. The stock has generated returns of -82% in the last 12 months and -50% in the last month after falling 73% in 2017.
Since the start of 2018, Windstream shares have fallen over 62%.
Stock downgraded last week
On July 18, Citigroup (C) analyst Michael Rollins downgraded Windstream shares from a “hold” to a “sell” and reduced the price target on the company from $7.50 to $1. According to Rollins, Windstream’s operating position is “precarious,” which might result in rising financial risk for the company.
The analyst also raised questions about Windstream’s long-term sustainability. Rollins further downgraded Uniti (UNIT) last week. Uniti is an REIT that was spun off from Windstream in 2015 and generates over 70% of its revenue from Windstream’s lease rent payments. Driven by Windstream’s lackluster performance over the last several quarters, Uniti now intends to generate less than 50% of its total sales from Windstream by mid-2019.
Shares of peer telecommunications company Frontier Corporation (FTR) fell almost 7% last week.