TELUS Corporation (TU) - What Are Researchers Thinking About This Stock?

Key Points

• Analyst sentiment is cautious: Seventeen research firms give TELUS a consensus “Reduce” rating, with five sells, nine holds and three buys. The average 12-month price target is $15.00.
• Recent financial results missed expectations: TELUS reported quarterly EPS of $0.12 versus the $0.16 consensus estimate, while revenue of $3.47 billion fell short of the $3.55 billion forecast.
• The dividend was sharply reduced: The quarterly dividend fell to C$0.19 from C$0.42, implying an annualized yield of about 8.5%; the company’s payout ratio was negative 131.71%.

Shares of TELUS Corporation (NYSE:TU - Get Free Report) TSE: T have received a consensus recommendation of "Reduce" from the seventeen research firms that are currently covering the firm, MarketBeat reports. Five equities research analysts have rated the stock with a sell rating, nine have given a hold rating and three have issued a buy rating on the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $15.00.

A number of research firms have recently weighed in on TU. Weiss Ratings cut TELUS from a "sell (d+)" rating to a "sell (d)" rating in a report on Wednesday, August 5th. Royal Bank Of Canada lowered shares of TELUS from an "outperform" rating to a "sector perform" rating in a research report on Tuesday, August 4th. Raymond James Financial started coverage on TELUS in a research report on Wednesday, July 15th. They issued a "market perform" rating for the company. National Bank Financial cut TELUS from an "outperform" rating to a "sector perform" rating in a research report on Tuesday, August 4th. Finally, TD Securities restated a "buy" rating on shares of TELUS in a research note on Monday, August 3rd.

TELUS Price Performance

Shares of NYSE:TU opened at $8.82 on Monday. The company has a quick ratio of 0.62, a current ratio of 0.67 and a debt-to-equity ratio of 1.88. TELUS has a fifty-two week low of $7.64 and a fifty-two week high of $15.10. The firm has a 50-day simple moving average of $8.90 and a 200 day simple moving average of $10.54. The company has a market cap of $14.02 billion, a PE ratio of -21.52, a P/E/G ratio of 20.81 and a beta of 0.65.

TELUS (NYSE:TU - Get Free Report) TSE: T last issued its earnings results on Friday, July 31st. The Wireless communications provider reported $0.12 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.16 by ($0.04). TELUS had a positive return on equity of 8.01% and a negative net margin of 4.51%. The business had revenue of $3.47 billion during the quarter, compared to the consensus estimate of $3.55 billion. On average, sell-side analysts anticipate that TELUS will post 0.24 EPS for the current year.

TELUS Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were issued a dividend of C$0.19 per share. The ex-dividend date was Thursday, September 10th. This represents a $0.75 dividend on an annualized basis and a dividend yield of 8.5%. This is a decrease from TELUS's previous quarterly dividend of C$0.42. TELUS's payout ratio is -131.71%.

Institutional Investors Weigh In On TELUS

A number of hedge funds have recently bought and sold shares of the company. Bank of Nova Scotia acquired a new stake in TELUS in the 2nd quarter worth $255,178,000. The Manufacturers Life Insurance Company raised its position in TELUS by 21.5% in the first quarter. The Manufacturers Life Insurance Company now owns 24,075,122 shares of the Wireless communications provider's stock worth $309,159,000 after purchasing an additional 4,258,557 shares in the last quarter. First Trust Advisors LP boosted its holdings in TELUS by 5.2% during the first quarter. First Trust Advisors LP now owns 9,844,098 shares of the Wireless communications provider's stock valued at $126,343,000 after purchasing an additional 486,043 shares in the last quarter. Bank of America Corp DE acquired a new stake in TELUS during the second quarter valued at approximately $75,058,000. Finally, Jupiter Topco LLC bought a new stake in shares of TELUS in the 2nd quarter valued at approximately $68,500,000. 49.40% of the stock is currently owned by institutional investors.

About TELUS

TELUS Corporation is a Canadian communications and technology company headquartered in Vancouver, British Columbia. It provides telecommunications and digital services to consumers, businesses and public-sector organizations, primarily in Canada.

Its core offerings include wireless voice and data services, high-speed internet, television, home security and fixed-line voice services. TELUS also provides business connectivity, cloud, cybersecurity, information technology and communications solutions.

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