TELUS (NYSE:TU) Reaches New 52-Week Low - Here's Why

Key Points

• TELUS shares fell 3% to a new 52-week low of $9.19, well below their 50-day and 200-day moving averages, after the company missed quarterly earnings and revenue expectations.
• Analyst sentiment is cautious: the stock has a consensus “Reduce” rating, with 3 Buy, 9 Hold, and 4 Sell ratings, despite a consensus price target of $15.33.
• TELUS declared a quarterly dividend of $0.1875, or $0.75 annualized, representing an approximately 8.2% yield; however, its payout ratio remains deeply negative at -295.12%.

Shares of TELUS Corporation (NYSE:TU - Get Free Report) TSE: T hit a new 52-week low during trading on Thursday . The company traded as low as $9.19 and last traded at $9.2050, with a volume of 1292626 shares traded. The stock had previously closed at $9.46.

Wall Street Analysts Forecast Growth

TU has been the subject of several research reports. Raymond James Financial initiated coverage on TELUS in a research report on Wednesday, July 15th. They issued a "market perform" rating for the company. Weiss Ratings cut shares of TELUS from a "sell (d+)" rating to a "sell (d)" rating in a research note on Wednesday, August 5th. Barclays set a $11.00 target price on shares of TELUS and gave the company an "equal weight" rating in a research report on Tuesday, August 4th. National Bank Financial cut shares of TELUS from an "outperform" rating to a "sector perform" rating in a research note on Tuesday, August 4th. Finally, Bank of America restated an "underperform" rating on shares of TELUS in a research note on Tuesday, August 4th. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Reduce" and a consensus price target of $15.33.

TELUS Stock Down 3.0%

The firm has a market cap of $14.44 billion, a price-to-earnings ratio of -22.38, a PEG ratio of 22.61 and a beta of 0.63. The business's 50-day moving average is $10.00 and its 200-day moving average is $11.64. The company has a debt-to-equity ratio of 1.88, a quick ratio of 0.62 and a current ratio of 0.67.

TELUS (NYSE:TU - Get Free Report) TSE: T last issued its quarterly earnings data on Friday, July 31st. The Wireless communications provider reported $0.12 earnings per share for the quarter, missing the consensus estimate of $0.16 by ($0.04). The firm had revenue of $3.47 billion for 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%. On average, equities analysts predict 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. Shareholders of record on Thursday, September 10th will be paid a $0.1875 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $0.75 dividend on an annualized basis and a yield of 8.2%. TELUS's payout ratio is currently -295.12%.

Institutional Trading of TELUS

Several large investors have recently made changes to their positions in TU. Cidel Asset Management Inc. bought a new position in shares of TELUS in the second quarter valued at about $171,000. NewEdge Advisors LLC increased its position in TELUS by 1,396,900.0% in the 2nd quarter. NewEdge Advisors LLC now owns 27,940 shares of the Wireless communications provider's stock valued at $295,000 after acquiring an additional 27,938 shares in the last quarter. Nykredit A S acquired a new stake in TELUS in the 2nd quarter valued at about $33,000. Northwestern Mutual Wealth Management Co. raised its stake in shares of TELUS by 83.6% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 15,305 shares of the Wireless communications provider's stock worth $162,000 after acquiring an additional 6,967 shares during the last quarter. Finally, Wellington Management Group LLP acquired a new position in shares of TELUS during the second quarter worth approximately $480,000. Institutional investors own 49.40% of the company's stock.

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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