Telefonica Brasil (NYSE:VIV) Reaches New 1-Year Low - Time to Sell?

Key Points

• Telefonica Brasil shares fell to a new 52-week low of $11.17, below both their 50-day moving average of $11.90 and 200-day moving average of $13.59.
• Analyst sentiment is cautious: the stock carries a consensus “Reduce” rating, with one Buy, five Hold, and three Sell ratings, despite an average price target of $14.66.
• The company missed quarterly EPS expectations, reporting $0.19 versus the $0.23 consensus estimate, while paying a $0.4562-per-share dividend with a high 76.92% payout ratio.

Telefonica Brasil S.A. (NYSE:VIV - Get Free Report)'s stock price reached a new 52-week low on Friday. The company traded as low as $11.17 and last traded at $11.1850, with a volume of 234791 shares changing hands. The stock had previously closed at $11.36.

Analysts Set New Price Targets

VIV has been the subject of several recent analyst reports. Morgan Stanley set a $14.00 target price on shares of Telefonica Brasil in a research note on Thursday, August 20th. Weiss Ratings lowered Telefonica Brasil from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, July 7th. Finally, Barclays set a $16.00 price objective on Telefonica Brasil in a research report on Wednesday, July 29th. One research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Reduce" and an average price target of $14.66.

Telefonica Brasil Stock Performance

The company has a quick ratio of 0.89, a current ratio of 0.95 and a debt-to-equity ratio of 0.22. The company has a market cap of $18.37 billion, a PE ratio of 14.46, a P/E/G ratio of 0.65 and a beta of 0.52. The stock's 50 day simple moving average is $11.90 and its two-hundred day simple moving average is $13.59.

Telefonica Brasil (NYSE:VIV - Get Free Report) last announced its quarterly earnings data on Thursday, July 23rd. The Wireless communications provider reported $0.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.23 by ($0.04). The company had revenue of $3.04 billion for the quarter, compared to analysts' expectations of $3.04 billion. Telefonica Brasil had a net margin of 10.64% and a return on equity of 9.72%. As a group, research analysts anticipate that Telefonica Brasil S.A. will post 0.94 earnings per share for the current year.

Telefonica Brasil Announces Dividend

The company also recently declared a dividend, which was paid on Tuesday, July 21st. Shareholders of record on Friday, May 22nd were paid a dividend of $0.4562 per share. The ex-dividend date was Friday, May 22nd. Telefonica Brasil's dividend payout ratio is currently 76.92%.

Hedge Funds Weigh In On Telefonica Brasil

Large investors have recently modified their holdings of the company. QRG Capital Management Inc. purchased a new stake in shares of Telefonica Brasil during the 2nd quarter worth about $181,000. Tidal Investments LLC raised its holdings in Telefonica Brasil by 54.5% in the second quarter. Tidal Investments LLC now owns 477,011 shares of the Wireless communications provider's stock valued at $6,277,000 after buying an additional 168,185 shares during the period. Allworth Financial LP lifted its position in Telefonica Brasil by 74.6% during the second quarter. Allworth Financial LP now owns 4,547 shares of the Wireless communications provider's stock valued at $60,000 after buying an additional 1,943 shares in the last quarter. Nykredit A S purchased a new stake in Telefonica Brasil during the second quarter worth approximately $625,000. Finally, B. Metzler seel. Sohn & Co. AG grew its stake in Telefonica Brasil by 286.3% during the second quarter. B. Metzler seel. Sohn & Co. AG now owns 140,456 shares of the Wireless communications provider's stock worth $1,848,000 after buying an additional 104,100 shares during the period. 5.16% of the stock is currently owned by hedge funds and other institutional investors.

Telefonica Brasil Company Profile

Telefônica Brasil SA, operating under the Vivo brand, is a telecommunications company serving consumers, businesses and public-sector organizations throughout Brazil. The company provides mobile voice and data services, wireless connectivity and related digital communications solutions.

Its fixed-line business includes broadband internet delivered primarily through fiber-optic networks, as well as voice and other connectivity services. Telefônica Brasil also offers information technology, cloud, cybersecurity, Internet of Things and managed communications solutions to corporate and institutional customers.

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