On September 22, 2023, AE Wealth Management LLC announced a significant reduction in its stake in BCE Inc. (NYSE:BCE) (TSE:BCE) during the second quarter of this year. According to the company’s recent filing with the Securities and Exchange Commission (SEC), the institutional investor sold 42,082 shares of BCE, reducing its holdings by approximately 37.6%. As a result, AE Wealth Management LLC’s ownership now amounts to 69,786 shares of the utilities provider’s stock, valued at $3,182,000 as of the end of the reporting period.
Alongside this development, BCE recently disclosed its quarterly dividend payment schedule. Stockholders who were recorded as owners on Friday, September 15th will receive a dividend of $0.73 per share on Monday, October 16th. This amounts to an annualized dividend of $2.92 per share and a dividend yield of 7.36%. Notably, this represents an increase from BCE’s previous quarterly dividend amount of $0.71 per share. The ex-dividend date was set for Thursday, September 14th.
AE Wealth Management LLC’s decision to reduce their stake in BCE may have various implications for both parties involved. Such portfolio adjustments are common financial strategies among institutional investors who continuously reassess and optimize their investments based on changing market conditions or other factors affecting security performance.
It is worth noting that BCE is a prominent utilities provider with a long-standing history in Canada and is reputed for offering reliable communication services to millions of consumers across the country. The company’s strong presence within the telecommunications sector has solidified its position as one of Canada’s leading providers within this industry.
As investors assess their positions in companies like BCE and make strategic decisions regarding their portfolios’ composition, it is essential to consider key financial indicators such as dividend payouts and yield ratios when evaluating potential investment opportunities or managing existing holdings.
While this particular transaction by AE Wealth Management LLC may be interpreted as a reduced confidence in BCE’s stock, market dynamics and investor strategies can vary immensely. Consequently, individual investors should conduct thorough research and consult with financial professionals before making any investment decisions to align their portfolios with their own financial objectives, risk tolerances, and time horizons.
In summary, AE Wealth Management LLC has reduced its position in BCE Inc. during the second quarter of 2023. The institutional investor sold 42,082 shares of the utilities provider’s stock, resulting in a decrease of approximately 37.6% in their stake. Furthermore, BCE recently announced an increase in its quarterly dividend payout to $0.73 per share, reflecting a dividend yield of 7.36%. Such developments provide important insights into the evolving landscape of both BCE and AE Wealth Management LLC’s investment strategies within the utilities sector.
Institutional Investors and Research Analysts Assess BCE’s Performance and Stake Changes
As of the first quarter of 2023, numerous institutional investors have made changes to their stakes in BCE (NYSE:BCE), a utilities provider. Notably, Caisse DE Depot ET Placement DU Quebec has increased its holdings in BCE by a staggering 53.5%. The investment firm now owns 13,375,600 shares of BCE’s stock valued at $742,107,000, after acquiring an additional 4,661,300 shares in the last quarter. Similarly, Vanguard Group Inc. has raised its stake in BCE by 3.9% during the third quarter. With an additional purchase of 496,949 shares, Vanguard Group now possesses 13,200,273 shares worth $553,619,000.
Furthermore, 1832 Asset Management L.P. has also increased its holdings in BCE by 0.8% during the fourth quarter and now owns 11,895,203 shares worth $522,794,000 after purchasing an extra 90,699 shares. Meanwhile Deutsche Bank AG has boosted its holdings by 0.7% during the same period and currently holds 11,811,377 shares valued at $519,110,000 after buying an additional 76,349 shares.
In addition to these institutional investors and hedge funds increasing their stakes in BCE over recent quarters is Scotia Capital Inc., which raised its holdings by 3.8% during the first quarter of this year. Now owning approximately 8 million shares worth $363 million after acquiring an extra 300k+ shares.
A considerable percentage of approximately 42.30% of BCE’s stock is currently owned by these institutional investors and hedge funds.
Numerous research firms have also weighed in on BCE’s performance and offer different perspectives on it as well as target prices for the stock’s value.
For instance,TD Securities downgraded BCE from a “buy” rating to a “hold” rating in a report issued on September 1st. Barclays lowered their target price from $47.00 to $45.00 and assigned an “equal weight” rating on the stock in a report released on August 7th. In contrast, National Bank Financial has upgraded its rating on BCE from “sector perform overweight” to “outperform overweight”, whereas StockNews.com has initiated coverage of BCE with a “hold” rating.
Finally, TheStreet downgraded BCE’s rating from a “b” to a “c+” in its research report published on August 3rd.
The consensus among the investment analysts suggests that BCE has a current average target price of $61.84 and is viewed as a “Hold”.
On another note, shares of BCE opened at $39.69 on Friday. Over the past year, the stock’s lowest point reached $39.69 while its highest was at $48.38.
As for financial performance, BCE reported its quarterly earnings results on August 3rd, 2023. The utilities provider revealed earnings per share (EPS) of $0.59 for the quarter, falling short of the consensus estimate by ($0.01). The company also posted a net margin of 9.68% and return on equity of 16.24%. With revenue reaching $4.52 billion during this period—falling slightly below analyst estimates—the equities analysts predict that BCE Inc.’s EPS for the current year will likely be around 2.38.
Considering all this information along with other relevant factors such as debt-to-equity ratio, quick ratio, current ratio, market cap, PE ratio (price-to-earnings), price-to-earnings-growth ratio, and beta factor – it is clear that investors have made varying choices about their stakes in BCE as influenced by different research analysis firms’ reports.