Telecom Argentina Stet - France Telecom (NYSE:TEO) Shares Gap Down - What's Next?

Key Points

• Telecom Argentina shares dropped at the open, falling from a prior close of $13.98 to $13.39 and later trading at $13.15.
• Analyst sentiment remains mixed: the stock has a consensus rating of “Hold” and an average price target of $15.93, with recent targets ranging from $16.50 to $21.00.
• Several institutional investors increased or initiated positions in the company, while an insider sold 188,500 shares; insiders currently own about 1% of the stock.

Telecom Argentina Stet - France Telecom S.A. (NYSE:TEO - Get Free Report)'s stock price gapped down before the market opened on Friday. The stock had previously closed at $13.98, but opened at $13.39. Telecom Argentina Stet - France Telecom shares last traded at $13.15, with a volume of 4,939 shares traded.

Analyst Upgrades and Downgrades

TEO has been the subject of a number of research analyst reports. Weiss Ratings upgraded Telecom Argentina Stet - France Telecom from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, September 16th. Zacks Research lowered Telecom Argentina Stet - France Telecom from a "strong-buy" rating to a "hold" rating in a report on Monday, June 29th. Morgan Stanley raised shares of Telecom Argentina Stet - France Telecom from an "equal weight" rating to an "overweight" rating and raised their price objective for the stock from $13.00 to $17.00 in a research note on Wednesday, June 24th. JPMorgan Chase & Co. upped their price target on shares of Telecom Argentina Stet - France Telecom from $19.00 to $21.00 and gave the stock an "overweight" rating in a report on Friday, September 4th. Finally, UBS Group reduced their price objective on Telecom Argentina Stet - France Telecom from $18.00 to $16.50 and set a "buy" rating on the stock in a report on Wednesday, August 12th. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $15.93.

Telecom Argentina Stet - France Telecom Stock Performance

The business has a 50 day simple moving average of $13.53 and a 200 day simple moving average of $12.85. The company has a quick ratio of 0.55, a current ratio of 0.58 and a debt-to-equity ratio of 0.50. The company has a market capitalization of $5.73 billion, a PE ratio of 10.80 and a beta of 1.33.

Insider Activity

In other news, Director Baruki Luis Alberto Gonzalez sold 188,500 shares of the firm's stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $2.78, for a total value of $524,030.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.00% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in TEO. ABS Direct Equity Fund LLC purchased a new stake in shares of Telecom Argentina Stet - France Telecom in the second quarter worth about $3,033,000. Engineers Gate Manager LP grew its holdings in Telecom Argentina Stet - France Telecom by 105.6% in the second quarter. Engineers Gate Manager LP now owns 86,936 shares of the utilities provider's stock valued at $1,130,000 after purchasing an additional 44,647 shares during the period. Absolute Gestao de Investimentos Ltda. increased its holdings in Telecom Argentina Stet - France Telecom by 156.7% in the 2nd quarter. Absolute Gestao de Investimentos Ltda. now owns 222,922 shares of the utilities provider's stock worth $2,898,000 after acquiring an additional 136,091 shares in the last quarter. XP Advisory US Inc. purchased a new stake in shares of Telecom Argentina Stet - France Telecom during the second quarter worth about $82,000. Finally, SPX Gestao de Recursos Ltda acquired a new position in shares of Telecom Argentina Stet - France Telecom during the first quarter valued at approximately $8,565,000.

Telecom Argentina Stet - France Telecom Company Profile

Telecom Argentina SA, formerly known as Telecom Argentina STET-France Telecom, is a telecommunications company serving consumers, businesses and public-sector organizations primarily in Argentina. The company provides mobile and fixed-line voice services, broadband internet access, data connectivity and other communications solutions.

Its consumer brands include Personal for mobile and broadband services and Flow for pay television, video streaming and related entertainment offerings. Telecom Argentina also provides information and communications technology services to corporate and institutional customers, including connectivity, data transmission, cloud, cybersecurity and other digital solutions.

The company was established following Argentina's telecommunications privatization in the early 1990s, with STET and France Télécom initially participating in its ownership.

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