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

Key Points

• TELUS shares fell to a new 52-week low of $8.96, trading below both their 50-day average of $9.91 and 200-day average of $11.52.
• Analyst sentiment is cautious: the stock has a consensus “Reduce” rating, with three Buy, nine Hold and four Sell ratings and an average price target of $15.33.
• TELUS missed quarterly expectations, reporting adjusted EPS of $0.12 versus $0.16 expected and revenue of $3.47 billion versus $3.55 billion forecast. The company declared a $0.1875 quarterly dividend, implying an annualized yield of about 8.4%.

TELUS Corporation (NYSE:TU - Get Free Report) TSE: T shares reached a new 52-week low on Wednesday . The stock traded as low as $8.96 and last traded at $8.9750, with a volume of 3776765 shares traded. The stock had previously closed at $9.08.

Analysts Set New Price Targets

A number of equities analysts have recently commented on TU shares. Canadian Imperial Bank of Commerce lowered shares of TELUS from a "strong-buy" rating to a "neutral" rating in a research report on Friday, July 31st. Bank of America reiterated an "underperform" rating on shares of TELUS in a research note on Tuesday, August 4th. Barclays set a $11.00 price target on shares of TELUS and gave the stock an "equal weight" rating in a research note on Tuesday, August 4th. Wall Street Zen cut TELUS from a "hold" rating to a "sell" rating in a report on Saturday, August 1st. Finally, Scotiabank reissued a "sector perform" rating on shares of TELUS in a report on Monday, August 3rd. Three research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average price target of $15.33.

TELUS Price Performance

The company has a quick ratio of 0.62, a current ratio of 0.67 and a debt-to-equity ratio of 1.88. The firm has a market capitalization of $14.25 billion, a price-to-earnings ratio of -21.87, a price-to-earnings-growth ratio of 21.46 and a beta of 0.63. The company's fifty day moving average is $9.91 and its two-hundred day moving average is $11.52.

TELUS (NYSE:TU - Get Free Report) TSE: T last released its quarterly earnings data 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 negative net margin of 4.51% and a positive return on equity of 8.01%. Equities research analysts anticipate that TELUS Corporation will post 0.24 earnings per share for the current fiscal year.

TELUS Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th will be issued a $0.1875 dividend. The ex-dividend date is Thursday, September 10th. This represents a $0.75 annualized dividend and a yield of 8.4%. TELUS's dividend payout ratio (DPR) is -131.71%.

Hedge Funds Weigh In On TELUS

Institutional investors and hedge funds have recently made changes to their positions in the company. Cidel Asset Management Inc. bought a new stake in shares of TELUS in the 2nd quarter valued at $171,000. NewEdge Advisors LLC grew its stake in TELUS by 1,396,900.0% in the second 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 during the period. Nykredit A S acquired a new position in TELUS in the second quarter valued at about $33,000. Northwestern Mutual Wealth Management Co. increased its holdings 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 in the last quarter. Finally, Wellington Management Group LLP acquired a new stake in shares of TELUS during the second quarter worth about $480,000. Institutional investors and hedge funds 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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