TELUS (NYSE:TU) Hits New 52-Week Low - Time to Sell?

Key Points

• TELUS shares fell to a new 52-week low of $8.67, trading below both their 50-day and 200-day moving averages.
• Analyst sentiment is cautious: the stock has a consensus rating of “Reduce”, with an average price target of $15.33 and four sell ratings among 16 analysts.
• TELUS reported weaker-than-expected quarterly results, with EPS of $0.12 versus $0.16 expected and revenue of $3.47 billion versus $3.55 billion forecast. Its quarterly dividend implies an elevated 8.6% yield, but the payout ratio is negative.

Shares of TELUS Corporation (NYSE:TU - Get Free Report) TSE: T hit a new 52-week low on Tuesday . The stock traded as low as $8.67 and last traded at $8.69, with a volume of 6540776 shares changing hands. The stock had previously closed at $8.75.

Analyst Upgrades and Downgrades

A number of brokerages have commented on TU. Weiss Ratings cut TELUS from a "sell (d+)" rating to a "sell (d)" rating in a research note on Wednesday, August 5th. Scotiabank reaffirmed a "sector perform" rating on shares of TELUS in a research note on Monday, August 3rd. Bank of America reiterated an "underperform" rating on shares of TELUS in a report on Tuesday, August 4th. Canadian Imperial Bank of Commerce cut shares of TELUS from a "strong-buy" rating to a "neutral" rating in a research report on Friday, July 31st. Finally, Desjardins lowered shares of TELUS from a "moderate buy" rating to a "hold" rating in a report on Tuesday, August 4th. Three investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Reduce" and an average price target of $15.33.

TELUS Price Performance

The stock has a market capitalization of $13.81 billion, a P/E ratio of -21.19, a price-to-earnings-growth ratio of 20.50 and a beta of 0.63. The business's 50 day moving average price is $9.78 and its 200 day moving average price is $11.38. The company has a debt-to-equity ratio of 1.88, a current ratio of 0.67 and a quick ratio of 0.62.

TELUS (NYSE:TU - Get Free Report) TSE: T last posted its earnings results on Friday, July 31st. The Wireless communications provider reported $0.12 EPS for the quarter, missing analysts' consensus estimates of $0.16 by ($0.04). The company had revenue of $3.47 billion during the quarter, compared to the consensus estimate of $3.55 billion. TELUS had a positive return on equity of 8.01% and a negative net margin of 4.51%. Sell-side analysts forecast that TELUS Corporation will post 0.24 EPS for the current year.

TELUS Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th will be given a $0.1875 dividend. The ex-dividend date is Thursday, September 10th. This represents a $0.75 annualized dividend and a yield of 8.6%. TELUS's dividend payout ratio (DPR) is presently -131.71%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Bank of Nova Scotia raised its holdings in TELUS by 20.4% in the 1st quarter. Bank of Nova Scotia now owns 21,108,090 shares of the Wireless communications provider's stock worth $271,237,000 after purchasing an additional 3,571,734 shares during the period. The Manufacturers Life Insurance Company grew its holdings in TELUS by 21.5% during the first quarter. The Manufacturers Life Insurance Company now owns 24,075,122 shares of the Wireless communications provider's stock valued at $309,159,000 after purchasing an additional 4,258,557 shares during the period. Connor Clark & Lunn Investment Management Ltd. bought a new stake in TELUS during the second quarter valued at about $1,698,000. Alberta Investment Management Corp purchased a new stake in TELUS in the second quarter worth about $4,466,000. Finally, Public Employees Retirement System of Ohio purchased a new stake in TELUS in the second quarter worth about $1,196,000. Hedge funds and other institutional investors own 49.40% of the company's stock.

About TELUS

TELUS Corporation is a Canadian telecommunications and technology company headquartered in Vancouver, British Columbia. It provides wireless and wireline communications services, including mobile connectivity, internet, voice, television and home security services, primarily to consumers, businesses and public-sector organizations in Canada.

The company also operates technology-focused businesses outside its traditional telecommunications operations. TELUS Health provides digital health platforms, virtual care, electronic medical records and workplace health solutions.

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