Telus Digital (NYSE:TIXT) Stock Rating Lowered by National Bankshares

Key Points

• National Bankshares has downgraded Telus Digital's rating from "sector perform" to a "tender" rating, increasing the price target from $4.00 to $4.50.
• Telus Digital's stock recently traded at $4.48 and has a market cap of $1.24 billion, with a negative net margin of 14.09% reported in their latest quarterly earnings.
• Despite the downgrade, consensus estimates suggest Telus Digital is expected to post earnings of $0.32 per share for the current fiscal year.

Telus Digital (NYSE:TIXT - Get Free Report) was downgraded by investment analysts at National Bankshares from a "sector perform" rating to a "tender" rating in a note issued to investors on Wednesday, Marketbeat reports. They presently have a $4.50 price objective on the stock, up from their previous price objective of $4.00. National Bankshares' price objective indicates a potential downside of 0.11% from the company's previous close.

Several other brokerages have also recently weighed in on TIXT. National Bank Financial cut shares of Telus Digital from an "outperform" rating to a "sector perform" rating and set a $4.00 price target for the company. in a research report on Monday, July 21st. CIBC cut shares of Telus Digital from a "neutral" rating to a "tender" rating and increased their price target for the company from $3.40 to $4.50 in a research report on Wednesday, September 3rd. Wall Street Zen cut shares of Telus Digital from a "buy" rating to a "hold" rating in a research report on Sunday, July 20th. BMO Capital Markets dropped their price target on shares of Telus Digital from $4.50 to $3.00 and set a "market perform" rating for the company in a research report on Monday, May 12th. Finally, Scotiabank increased their price target on shares of Telus Digital from $3.00 to $3.40 and gave the company a "sector perform" rating in a research report on Tuesday, June 17th. Nine analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, Telus Digital presently has an average rating of "Hold" and a consensus price target of $3.93.

Telus Digital Trading Up 0.8%

Shares of TIXT stock traded up $0.04 on Wednesday, hitting $4.51. 1,838,273 shares of the company's stock traded hands, compared to its average volume of 745,299. The company has a debt-to-equity ratio of 0.85, a quick ratio of 0.84 and a current ratio of 0.84. Telus Digital has a one year low of $2.13 and a one year high of $4.60. The company's fifty day simple moving average is $3.89 and its 200 day simple moving average is $3.20. The stock has a market capitalization of $1.25 billion, a price-to-earnings ratio of -3.24 and a beta of 0.91.

Telus Digital (NYSE:TIXT - Get Free Report) last released its earnings results on Friday, August 1st. The company reported $0.06 EPS for the quarter, beating the consensus estimate of $0.05 by $0.01. The company had revenue of $711.33 million for the quarter, compared to analyst estimates of $660.87 million. Telus Digital had a negative net margin of 14.09% and a positive return on equity of 1.99%. Telus Digital has set its FY 2025 guidance at 0.320-0.320 EPS. Equities analysts forecast that Telus Digital will post 0.32 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of TIXT. Gabelli Funds LLC purchased a new position in Telus Digital during the 2nd quarter valued at about $36,000. Aquatic Capital Management LLC bought a new stake in Telus Digital during the 4th quarter valued at about $37,000. Bayesian Capital Management LP bought a new stake in Telus Digital during the 4th quarter valued at about $45,000. Dynamic Technology Lab Private Ltd bought a new stake in Telus Digital during the 1st quarter valued at about $58,000. Finally, PDT Partners LLC increased its stake in Telus Digital by 79.9% during the 1st quarter. PDT Partners LLC now owns 28,058 shares of the company's stock valued at $75,000 after purchasing an additional 12,458 shares in the last quarter. 59.55% of the stock is owned by hedge funds and other institutional investors.

Telus Digital Company Profile

TELUS Digital Inc design, builds, and delivers digital solutions for customer experience (CX) in the Asia-Pacific, the Central America, Europe, Africa, North America, and internationally. The company provides digital experience solutions, such as AI and bots, omnichannel CX, enterprise mobility solutions, cloud contact center, big data analytics, platform transformation, and UX/UI design; and customer experience solutions, including work anywhere/work from home, contact center outsourcing, technical support, sales growth and customer retention, healthcare/patient experience, and debt collection.