Millicom International Cellular (NASDAQ:TIGO) Sees Strong Trading Volume After Analyst Upgrade

Key Points

• Shares saw an unusually-strong trading spike after Scotiabank raised its price target (from $43.00 to $51.20) — about 2.63 million shares traded, a 94% increase — with the stock last trading around $75.60.
• Millicom posted a solid quarter, beating EPS ($1.50 vs. $1.05 est.) and revenue ($1.65B vs. $1.49B), with revenue up 15.7% year-over-year and a P/E of 9.63.
• Analyst views are mixed (five Buys, one Hold, two Sells) leaving a consensus rating of "Hold" and target of $60.70, while the company pays a $0.75 quarterly dividend (4.0% yield) with an ex-dividend date of April 8.

Millicom International Cellular SA (NASDAQ:TIGO - Get Free Report) shares saw unusually-strong trading volume on Tuesday after Scotiabank raised their price target on the stock from $43.00 to $51.20. Scotiabank currently has a sector underperform rating on the stock. Approximately 2,626,037 shares were traded during mid-day trading, an increase of 94% from the previous session's volume of 1,355,096 shares.The stock last traded at $75.60 and had previously closed at $73.13.

Other research analysts have also issued reports about the stock. Wall Street Zen lowered shares of Millicom International Cellular from a "strong-buy" rating to a "buy" rating in a research note on Saturday. UBS Group raised shares of Millicom International Cellular from a "neutral" rating to a "buy" rating and boosted their target price for the stock from $49.00 to $70.00 in a research report on Thursday, January 15th. HSBC upgraded shares of Millicom International Cellular from a "hold" rating to a "buy" rating and set a $89.00 target price on the stock in a report on Friday, March 6th. Morgan Stanley reiterated a "positive" rating and set a $55.00 price target on shares of Millicom International Cellular in a research note on Thursday, February 26th. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Millicom International Cellular in a report on Thursday, January 22nd. Five analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $60.70.

Institutional Trading of Millicom International Cellular

Institutional investors and hedge funds have recently made changes to their positions in the company. Smartleaf Asset Management LLC lifted its position in shares of Millicom International Cellular by 155.4% during the third quarter. Smartleaf Asset Management LLC now owns 516 shares of the technology company's stock valued at $25,000 after purchasing an additional 314 shares in the last quarter. Allworth Financial LP grew its position in Millicom International Cellular by 1,129.7% in the 4th quarter. Allworth Financial LP now owns 455 shares of the technology company's stock worth $25,000 after purchasing an additional 418 shares in the last quarter. Harbor Capital Advisors Inc. purchased a new stake in Millicom International Cellular in the 3rd quarter valued at about $26,000. Altshuler Shaham Ltd purchased a new stake in Millicom International Cellular in the 4th quarter valued at about $26,000. Finally, Blue Trust Inc. lifted its position in shares of Millicom International Cellular by 736.2% during the 4th quarter. Blue Trust Inc. now owns 485 shares of the technology company's stock worth $27,000 after buying an additional 427 shares in the last quarter.

Millicom International Cellular Stock Performance

The company's 50-day simple moving average is $67.95 and its 200 day simple moving average is $56.78. The stock has a market cap of $13.00 billion, a P/E ratio of 9.63 and a beta of 0.90. The company has a current ratio of 0.88, a quick ratio of 0.86 and a debt-to-equity ratio of 1.81.

Millicom International Cellular (NASDAQ:TIGO - Get Free Report) last released its earnings results on Thursday, February 26th. The technology company reported $1.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.05 by $0.45. The company had revenue of $1.65 billion during the quarter, compared to analyst estimates of $1.49 billion. Millicom International Cellular had a return on equity of 17.07% and a net margin of 22.62%.Millicom International Cellular's quarterly revenue was up 15.7% on a year-over-year basis. During the same period in the prior year, the company posted $0.18 earnings per share. As a group, sell-side analysts expect that Millicom International Cellular SA will post 1.91 EPS for the current fiscal year.

Millicom International Cellular Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 15th. Shareholders of record on Thursday, April 8th will be paid a $0.75 dividend. This represents a $3.00 dividend on an annualized basis and a yield of 4.0%. The ex-dividend date is Thursday, April 8th. Millicom International Cellular's dividend payout ratio is 38.22%.

About Millicom International Cellular

Millicom International Cellular SA, trading under the TIGO brand, is a Luxembourg‐headquartered telecommunications and media company that provides a range of mobile, cable broadband, digital television and enterprise services. Through its integrated infrastructure, the company delivers voice and data connectivity, high‐speed internet access and pay‐television packages to millions of customers, supported by ongoing investments in network coverage and capacity.

Established in 1990 by Swedish investor Jan Stenbeck, Millicom has grown into a multi‐regional operator focused primarily on Central and South America.

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