National Bankshares Downgrades Telus Digital (NYSE:TIXT) to Tender

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 research report issued on Wednesday,BayStreet.CA reports. They currently have a $4.50 price target on the stock, up from their previous price target of $4.00. National Bankshares' target price would indicate a potential upside of 0.56% from the company's previous close.

Several other research analysts have also recently weighed in on TIXT. Wall Street Zen cut shares of Telus Digital from a "buy" rating to a "hold" rating in a report on Sunday, July 20th. CIBC restated a "tender" rating and issued a $4.50 target price (up previously from $3.40) on shares of Telus Digital in a research note on Wednesday. Scotiabank boosted their price objective on Telus Digital from $3.00 to $3.40 and gave the stock a "sector perform" rating in a research report on Tuesday, June 17th. Morgan Stanley decreased their target price on Telus Digital from $3.49 to $3.40 and set an "equal weight" rating for the company in a research report on Monday, August 4th. Finally, National Bank Financial downgraded shares of Telus Digital from an "outperform" rating to a "sector perform" rating and set a $4.00 price target on the stock. in a report on Monday, July 21st. One research analyst has rated the stock with a Strong Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $3.81.

Telus Digital Stock Down 0.1%

Shares of TIXT stock traded down $0.01 during trading hours on Wednesday, reaching $4.48. The company had a trading volume of 3,076,681 shares, compared to its average volume of 698,766. The company has a market cap of $1.24 billion, a price-to-earnings ratio of -3.22 and a beta of 0.91. The company has a debt-to-equity ratio of 0.85, a current ratio of 0.84 and a quick ratio of 0.84. Telus Digital has a 12 month low of $2.13 and a 12 month high of $4.60. The business has a fifty day simple moving average of $3.84 and a 200-day simple moving average of $3.18.

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

Institutional Inflows and Outflows

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

About Telus Digital

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.

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