Windstream Holdings, Inc. (NASDAQ:WIN) Stock Keeps Sliding

Windstream Holdings, Inc. (NASDAQ:WIN)

Windstream Holdings, Inc. (NASDAQ:WIN) stock has lost almost 50% of its value since the company eliminated its dividend and replaced it with a stock repurchase program. The technology company’s stock has made a new 52-week low in seven consecutive trading sessions on heavy volumes.

Windstream Holdings, Inc. (NASDAQ:WIN)
WIN stock price chart

Yesterday Windstream Holdings, Inc. (NASDAQ:WIN) announced the first update to its portfolio of leading Unified Communications as a Service (UCaaS) solutions after the Broadview Networks’ acquisition. Broadview’s OfficeSuite, paired with Windstream’s SD-WAN solution, provides users with a UCaaS experience that combines services such as phone, contact center, chat, video, and collaboration with Windstream’s SD-WAN solution.

WAN technology has been an IT mainstay for voice and data networking infrastructure, but WAN technology has a higher possibility of downtime and latency incidents. Cloud, or hybrid, architectures and the higher cost of adding locations have required some companies to adjust their WAN strategy. Windstream Holdings, Inc. (NASDAQ:WIN)’s SD-WAN solution employs software-defined networking (SDN) to dynamically route traffic over a combination of private and public access types to reach multiple locations. Companies can maintain control over their network from a convenient centralized location rather than managing numerous routers, firewalls, and switches.

Windstream Holdings, Inc. (NASDAQ:WIN) stock target price is pegged at $5.58 by a consensus group of analysts. Its sales have contracted marginally since 2012 when the company posted a figure of $6.14 million. For 2016 the figure was announced at $5.39 million. However, per share earnings have been highly inconsistent. 2012 had a per share profit of $1.68, followed by per share figures of $2.35), (-$0.45), $0.24, and, for 2016 (-$4.11). Last week, Windstream posted a Q2 net loss of (-$68) million, or (-$0.37) per share, on revenues of $1.49 billion.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.