Millicom International Cellular (NASDAQ:TIGO) Shares Down 2.7% After Analyst Downgrade

Key Points

• Millicom International Cellular's shares fell by 2.7% after UBS Group downgraded the stock from a buy rating to a neutral rating, setting a new price target of $49.00.
• The company reported $0.51 earnings per share for the last quarter, missing the consensus estimate of $0.54, with revenues of $1.37 billion compared to expectations of $1.40 billion.
• Millicom announced a special dividend of $1.25 per share, resulting in a yield of 620.0%, with the payout date set for October 15th.

Millicom International Cellular SA (NASDAQ:TIGO - Get Free Report)'s share price fell 2.7% during mid-day trading on Thursday after UBS Group downgraded the stock from a buy rating to a neutral rating. UBS Group now has a $49.00 price target on the stock. Millicom International Cellular traded as low as $46.90 and last traded at $46.68. 44,211 shares changed hands during mid-day trading, a decline of 95% from the average session volume of 942,642 shares. The stock had previously closed at $47.97.

A number of other equities research analysts also recently weighed in on TIGO. Wall Street Zen upgraded shares of Millicom International Cellular from a "buy" rating to a "strong-buy" rating in a research note on Monday, August 25th. Zacks Research raised Millicom International Cellular from a "hold" rating to a "strong-buy" rating in a report on Friday, August 15th. JPMorgan Chase & Co. lifted their price target on Millicom International Cellular from $50.00 to $55.00 and gave the company an "overweight" rating in a report on Thursday, August 14th. Finally, Scotiabank boosted their price objective on Millicom International Cellular from $37.00 to $46.10 and gave the stock a "sector perform" rating in a report on Tuesday, August 19th. Two investment analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Millicom International Cellular has an average rating of "Moderate Buy" and a consensus target price of $42.02.

Institutional Investors Weigh In On Millicom International Cellular

A number of large investors have recently added to or reduced their stakes in the business. Osaic Holdings Inc. raised its stake in Millicom International Cellular by 1,981.2% in the 2nd quarter. Osaic Holdings Inc. now owns 5,973 shares of the technology company's stock valued at $216,000 after acquiring an additional 5,686 shares during the period. Orion Porfolio Solutions LLC bought a new stake in Millicom International Cellular in the 2nd quarter valued at $201,000. Thrivent Financial for Lutherans bought a new stake in Millicom International Cellular in the 2nd quarter valued at $203,000. State of Wyoming raised its stake in Millicom International Cellular by 123.4% in the 2nd quarter. State of Wyoming now owns 4,655 shares of the technology company's stock valued at $174,000 after acquiring an additional 2,571 shares during the period. Finally, MML Investors Services LLC raised its stake in Millicom International Cellular by 19.7% in the 2nd quarter. MML Investors Services LLC now owns 20,067 shares of the technology company's stock valued at $752,000 after acquiring an additional 3,303 shares during the period.

Millicom International Cellular Trading Down 1.7%

The business has a 50 day moving average of $42.88 and a two-hundred day moving average of $36.26. The company has a current ratio of 0.89, a quick ratio of 0.87 and a debt-to-equity ratio of 1.59. The firm has a market cap of $8.12 billion, a P/E ratio of 8.30 and a beta of 1.09.

Millicom International Cellular (NASDAQ:TIGO - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The technology company reported $0.51 earnings per share for the quarter, missing analysts' consensus estimates of $0.54 by ($0.03). The business had revenue of $1.37 billion during the quarter, compared to the consensus estimate of $1.40 billion. Millicom International Cellular had a net margin of 16.97% and a return on equity of 10.32%. Analysts predict that Millicom International Cellular SA will post 1.91 earnings per share for the current year.

Millicom International Cellular Dividend Announcement

The company also recently disclosed a special dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Wednesday, October 8th will be given a dividend of $1.25 per share. The ex-dividend date is Wednesday, October 8th. This represents a yield of 620.0%. Millicom International Cellular's dividend payout ratio (DPR) is presently 52.91%.

About Millicom International Cellular

Millicom International Cellular SA provides cable and mobile services in Latin America. It offers mobile services, including mobile data and voice, and short message services; and mobile financial services, such as payments, money transfers, international remittances, savings, real-time loans, and micro-insurance.

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