Telefonica SA (NYSE:TEF) Receives Average Recommendation of "Reduce" from Brokerages

Key Points

• Telefonica has an average “Reduce” rating from six analysts, with three sell ratings and three hold ratings. The average 12-month price target is $4.115, modestly above the stock’s $3.81 opening price.
• Analyst sentiment recently shifted: New Street Research downgraded the stock to “sell,” while BNP Paribas Exane raised its view to “neutral” and set a $4.40 price target.
• Institutional ownership remains limited at 1.14%, although several investment firms increased their stakes. Telefonica shares are near their one-year low of $3.80, compared with a one-year high of $5.72.

Telefonica SA (NYSE:TEF - Get Free Report) has been given an average rating of "Reduce" by the six analysts that are currently covering the company, MarketBeat.com reports. Three equities research analysts have rated the stock with a sell rating and three have issued a hold rating on the company. The average 1 year price target among brokerages that have issued a report on the stock in the last year is $4.1150.

A number of equities research analysts have commented on the company. New Street Research cut Telefonica from a "reduce" rating to a "sell" rating in a report on Friday, August 21st. BNP Paribas Exane raised Telefonica to a "neutral" rating and set a $4.40 price objective for the company in a research note on Wednesday, September 9th.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. GAMMA Investing LLC lifted its holdings in shares of Telefonica by 105.6% in the second quarter. GAMMA Investing LLC now owns 11,352 shares of the utilities provider's stock worth $45,000 after buying an additional 5,831 shares in the last quarter. Cozad Asset Management Inc. grew its stake in Telefonica by 11.2% during the first quarter. Cozad Asset Management Inc. now owns 36,638 shares of the utilities provider's stock valued at $140,000 after acquiring an additional 3,684 shares in the last quarter. Assetmark Inc. grew its stake in Telefonica by 52.5% during the first quarter. Assetmark Inc. now owns 266,549 shares of the utilities provider's stock valued at $1,016,000 after acquiring an additional 91,749 shares in the last quarter. Rockefeller Capital Management L.P. increased its holdings in Telefonica by 178.1% in the 4th quarter. Rockefeller Capital Management L.P. now owns 15,732 shares of the utilities provider's stock valued at $64,000 after acquiring an additional 10,075 shares during the last quarter. Finally, Flputnam Investment Management Co. purchased a new stake in Telefonica in the 4th quarter worth $61,000. 1.14% of the stock is currently owned by institutional investors.

Telefonica Price Performance

Shares of TEF stock opened at $3.81 on Tuesday. The company has a debt-to-equity ratio of 1.44, a current ratio of 0.84 and a quick ratio of 0.80. Telefonica has a one year low of $3.80 and a one year high of $5.72. The company's fifty day moving average price is $3.81 and its 200-day moving average price is $3.81. The company has a market capitalization of $21.60 billion, a price-to-earnings ratio of -9.29, a PEG ratio of 0.26 and a beta of 0.29.

Telefonica Company Profile

Telefónica, SA is a Spanish telecommunications company that provides fixed-line and mobile communications, broadband internet, television, and digital services. Its offerings also include fiber-optic connectivity, cloud computing, cybersecurity, Internet of Things solutions, and other information and communications technology services for consumers, businesses, and public-sector organizations.

Founded in 1924 and headquartered in Madrid, Telefónica is one of Europe's established telecommunications operators.

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