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

Key Points

• TELUS shares fell to a new 52-week low of $8.01, well below their 50-day and 200-day moving averages of $9.43 and $11.05, respectively.
• Analyst sentiment is mostly cautious, with an average rating of “Reduce” and a consensus price target of $15.33; recent coverage includes downgrades to neutral and underweight.
• TELUS missed quarterly earnings and revenue estimates, while cutting its quarterly dividend from C$0.42 to C$0.19. The reduced payout equates to an annualized dividend of C$0.75 and a 9.4% yield.

TELUS Corporation (NYSE:TU - Get Free Report) TSE: T hit a new 52-week low during mid-day trading on Monday. The stock traded as low as $8.01 and last traded at $8.0240, with a volume of 17330 shares changing hands. The stock had previously closed at $8.04.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on TU shares. Raymond James Financial initiated coverage on shares of TELUS in a research report on Wednesday, July 15th. They set a "market perform" rating for the company. Canadian Imperial Bank of Commerce cut TELUS from a "strong-buy" rating to a "neutral" rating in a report on Friday, July 31st. Barclays set a $11.00 target price on TELUS and gave the company an "equal weight" rating in a research report on Tuesday, August 4th. Morgan Stanley cut TELUS to an "underweight" rating in a research report on Tuesday, July 21st. Finally, TD Securities reaffirmed a "buy" rating on shares of TELUS in a research note on Monday, August 3rd. Three investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Reduce" and a consensus price target of $15.33.

TELUS Stock Performance

The company has a current ratio of 0.67, a quick ratio of 0.62 and a debt-to-equity ratio of 1.88. The company has a market cap of $12.66 billion, a PE ratio of -19.44, a PEG ratio of 18.84 and a beta of 0.65. The business's 50 day moving average is $9.43 and its two-hundred day moving average is $11.05.

TELUS (NYSE:TU - Get Free Report) TSE: T last posted its quarterly 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 business had revenue of $3.47 billion for 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%. On average, equities research analysts anticipate that TELUS Corporation will post 0.24 EPS for the current year.

TELUS Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were paid a C$0.19 dividend. This represents a $0.75 annualized dividend and a yield of 9.4%. The ex-dividend date was Thursday, September 10th. This is a negative change from TELUS's previous quarterly dividend of C$0.42. TELUS's dividend payout ratio is currently -131.71%.

Institutional Investors Weigh In On TELUS

Several institutional investors and hedge funds have recently modified their holdings of the stock. Bank of Nova Scotia bought a new position in shares of TELUS during the 2nd quarter valued at about $255,178,000. The Manufacturers Life Insurance Company purchased a new stake in shares of TELUS in the second quarter worth about $100,492,000. Bank of America Corp DE purchased a new stake in shares of TELUS in the second quarter worth about $75,058,000. Jupiter Topco LLC bought a new position in TELUS during the second quarter valued at approximately $68,500,000. Finally, Deutsche Bank AG bought a new position in TELUS during the second quarter valued at approximately $14,065,000. 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. Through its TELUS Communications business, the company provides wireless and wireline telecommunications services, including mobile voice and data, high-speed internet, television, home security, and business communications solutions.

TELUS also operates technology-focused businesses serving customers in Canada and international markets. TELUS Health provides digital health platforms, virtual care, employee assistance, and related healthcare services.

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