Rogers Communications stock consolidates as workforce reduction points to revenue slowdown

Traders Union
All News
Financial News
Rogers Communications drops 0.60% today

Highlights

Rogers Communications launched one of the largest sector-wide voluntary buyout programs, targeting about half its workforce amid slowing revenue and regulatory headwinds.
Scotiabank has raised RCI’s 2026 EPS forecast, but valuation remains below historical norms, indicating lingering financial strength concerns.
Technical signals are mixed; the price is consolidating between $35.00 and $37.50, with bullish short-term momentum but overbought conditions warning of potential volatility.

Workforce reductions and buyouts follow slowing growth, pressure valuation

Rogers Communications has initiated voluntary buyouts and departure packages for approximately half of its workforce, in what is described as one of the largest buyout programs within the Canadian telecommunications sector. This step was prompted by slowing revenue growth and recent regulatory challenges. Scotiabank raised its full-year 2026 earnings per share estimates for the company, while valuation metrics indicate a price-to-earnings ratio well below historical averages and highlight some financial strength concerns, though price action has remained under broader selling pressure.

Mixed momentum and overbought signals shape ambiguous technical outlook

RCI sits above the SMA-20 at $34.78 but remains below both the SMA-50 ($37.45) and the SMA-200 ($36.61). The Ichimoku Kijun at $35.66 acts as immediate support, with price currently between today’s high and low of $36.61 and $36.09. The D1 MACD shows a strong sell, while the ADX reflects moderate bullish momentum. RSI is at 54.34, and CCI at 61.03 signal mild bullish sentiment, but overbought warnings come from both Stoch RSI and BBP, indicating persistent buyer dominance intraday. Awesome Oscillator is neutral, leaving the immediate trend direction unclear, and the technical outlook remains mixed due to opposing momentum and volatility signals.

Sustained consolidation favored as upside risk outweighs declines

RCI is expected to trade within the $35.00 – $37.50 band over the next five sessions, which reflects typical short-term volatility for the asset. The probability of an upward move stands at 75%, indicating a price decline is less likely. The baseline scenario calls for prices to consolidate between $35.00 and $37.50. A sustained close above $36.61 could open the way for a test of $37.50, while a drop below $35.66 may trigger a move toward $35.00 support.

Viktoras Karapetjanc, expert at Traders Union, sees macro and fundamental drivers aligning for Rogers Communications, despite short-term headline and technical uncertainty. He notes that valuation remains attractive compared to historical levels, and sentiment appears moderately positive following Scotiabank’s earnings outlook upgrade. The analyst views the recent workforce reduction as a significant strategic response to industry headwinds and regulatory pressures. He believes this restructuring could improve efficiency and enhance earnings capacity as the market digests short-term volatility. "If RCI can sustain key supports above $35.66, I expect optimism will return and buyers will push for a breakout above $36.61 in the coming sessions."

Earlier, analysts noted that Rogers Communications was expected to continue trading sideways as mixed momentum signals and technical resistance limited its upside. The introduction of one of the sector's largest voluntary buyout programs marks a significant shift in the company's operational outlook and adds a new dimension to price action, making investor attention to the $36.61 level crucial for signals of momentum resumption or further consolidation.

Source of Data: Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.