Telefonica Brasil (NYSE:VIV) Shares Gap Up - Time to Buy?

Key Points

• Telefonica Brasil shares jumped from a prior close of $11.54 to open at $12.73, later trading near $12.82.
• Analyst sentiment remains cautious: the stock carries an average “Reduce” rating, with five Holds and three Sells versus one Buy, and an average price target of $14.66.
• The company missed quarterly EPS estimates, reporting $0.19 versus the expected $0.23, while revenue matched forecasts at $3.04 billion. It also paid a $0.4562-per-share dividend, representing a 76.92% payout ratio.

Shares of Telefonica Brasil S.A. (NYSE:VIV - Get Free Report) gapped up before the market opened on Monday. The stock had previously closed at $11.54, but opened at $12.73. Telefonica Brasil shares last traded at $12.8150, with a volume of 480,317 shares trading hands.

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. Weiss Ratings downgraded Telefonica Brasil from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, July 7th. Morgan Stanley set a $14.00 target price on shares of Telefonica Brasil in a report on Thursday, August 20th. Finally, Barclays set a $16.00 price target on shares of Telefonica Brasil in a research report on Wednesday, July 29th. One analyst has rated the stock with a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, Telefonica Brasil presently has an average rating of "Reduce" and an average target price of $14.66.

Telefonica Brasil Price Performance

The firm has a market capitalization of $20.73 billion, a P/E ratio of 16.42, a PEG ratio of 0.65 and a beta of 0.52. The company has a fifty day moving average of $11.85 and a 200 day moving average of $13.56. The company has a debt-to-equity ratio of 0.22, a current ratio of 0.95 and a quick ratio of 0.89.

Telefonica Brasil (NYSE:VIV - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The Wireless communications provider reported $0.19 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.23 by ($0.04). Telefonica Brasil had a return on equity of 9.72% and a net margin of 10.64%.The firm had revenue of $3.04 billion during the quarter, compared to analyst estimates of $3.04 billion. Sell-side analysts predict that Telefonica Brasil S.A. will post 0.94 earnings per share for the current year.

Telefonica Brasil Dividend Announcement

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

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Allworth Financial LP boosted its position in shares of Telefonica Brasil by 74.6% during the 2nd quarter. Allworth Financial LP now owns 4,547 shares of the Wireless communications provider's stock valued at $60,000 after purchasing an additional 1,943 shares in the last quarter. Public Employees Retirement System of Ohio acquired a new position in Telefonica Brasil in the first quarter valued at approximately $121,000. EverSource Wealth Advisors LLC lifted its stake in Telefonica Brasil by 61.2% in the first quarter. EverSource Wealth Advisors LLC now owns 9,840 shares of the Wireless communications provider's stock valued at $157,000 after buying an additional 3,736 shares during the period. SG Americas Securities LLC boosted its holdings in shares of Telefonica Brasil by 11.5% during the 1st quarter. SG Americas Securities LLC now owns 10,347 shares of the Wireless communications provider's stock worth $165,000 after buying an additional 1,064 shares in the last quarter. Finally, Mcguire Capital Advisors Inc. acquired a new stake in shares of Telefonica Brasil during the 4th quarter worth approximately $170,000. 5.16% of the stock is owned by 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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