TELUS (NYSE:TU) Hits New 52-Week Low - What's Next?

Key Points

• TELUS shares fell to a new 52-week low of $8.33, well below their 50-day and 200-day moving averages of $9.62 and $11.23, respectively.
• Analyst sentiment has weakened, with several firms downgrading the stock to “sector perform,” “hold” or “underweight.” The consensus rating is “Reduce,” although the average price target remains $15.33.
• TELUS missed quarterly expectations, reporting EPS of $0.12 versus $0.16 expected and revenue of $3.47 billion versus $3.55 billion expected. The company also cut its quarterly dividend to C$0.19 from C$0.42, resulting in an annualized yield of about 9%.

TELUS Corporation (NYSE:TU - Get Free Report) TSE: T reached a new 52-week low during trading on Monday. The stock traded as low as $8.33 and last traded at $8.3250, with a volume of 213006 shares traded. The stock had previously closed at $8.48.

Analyst Ratings Changes

Several equities research analysts have commented on the stock. Royal Bank Of Canada lowered shares of TELUS from an "outperform" rating to a "sector perform" rating in a research note on Tuesday, August 4th. National Bank Financial lowered TELUS from an "outperform" rating to a "sector perform" rating in a report on Tuesday, August 4th. Weiss Ratings cut TELUS from a "sell (d+)" rating to a "sell (d)" rating in a research report on Wednesday, August 5th. Desjardins cut TELUS from a "moderate buy" rating to a "hold" rating in a research report on Tuesday, August 4th. Finally, Morgan Stanley downgraded TELUS to an "underweight" rating in a research note on Tuesday, July 21st. Three analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Reduce" and a consensus price target of $15.33.

TELUS Stock Performance

The company has a fifty day moving average price of $9.62 and a two-hundred day moving average price of $11.23. The firm has a market cap of $13.31 billion, a price-to-earnings ratio of -20.45, a price-to-earnings-growth ratio of 19.87 and a beta of 0.63. 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 released its earnings results on Friday, July 31st. The Wireless communications provider reported $0.12 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.16 by ($0.04). TELUS had a positive return on equity of 8.01% and a negative net margin of 4.51%.The firm had revenue of $3.47 billion for the quarter, compared to analyst estimates of $3.55 billion. As a group, equities research analysts expect that TELUS Corporation will post 0.24 EPS for the current year.

TELUS Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be paid a C$0.19 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $0.75 annualized dividend and a dividend yield of 9.0%. This is a decrease from TELUS's previous quarterly dividend of C$0.42. TELUS's dividend payout ratio is presently -131.71%.

Institutional Trading of TELUS

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. The Manufacturers Life Insurance Company boosted 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 worth $309,159,000 after buying an additional 4,258,557 shares in the last quarter. Bank of Nova Scotia increased its holdings in shares of TELUS by 20.4% in the first quarter. Bank of Nova Scotia now owns 21,108,090 shares of the Wireless communications provider's stock valued at $271,237,000 after buying an additional 3,571,734 shares in the last quarter. First Trust Advisors LP lifted its position in shares of TELUS by 5.2% during the 1st quarter. First Trust Advisors LP now owns 9,844,098 shares of the Wireless communications provider's stock valued at $126,343,000 after acquiring an additional 486,043 shares during the last quarter. Letko Brosseau & Associates Inc. lifted its position in shares of TELUS by 2.2% during the 4th quarter. Letko Brosseau & Associates Inc. now owns 6,775,387 shares of the Wireless communications provider's stock valued at $89,416,000 after acquiring an additional 148,325 shares during the last quarter. Finally, Norges Bank acquired a new stake in shares of TELUS during the 4th quarter valued at $83,707,000. 49.40% of the stock is owned by institutional investors and hedge funds.

TELUS Company Profile

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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