TELUS (TSE:T) Shares Break Above 50-Day Moving Average - Time to Sell?

Key Points

• TELUS shares rose above their 50-day moving average, reaching C$12.41 and last trading at C$12.37 on volume of roughly 9 million shares. However, the stock remains below its 200-day moving average of C$15.72.
• Analyst sentiment is largely cautious: TELUS has an average rating of “Hold” from MarketBeat, with nine Holds, two Sells, one Buy and one Strong Buy. The average price target is C$16.30, though several firms recently reduced their targets.
• The company reported C$0.16 in quarterly earnings per share and C$4.92 billion in revenue, but posted a negative net margin of 4.55% and negative return on equity of 6.56%; its high debt-to-equity ratio of 236.85 also highlights financial leverage concerns.

TELUS Co. (TSE:T - Get Free Report) NYSE: TU shares crossed above its 50 day moving average during trading on Friday. The stock has a 50 day moving average of C$12.31 and traded as high as C$12.41. TELUS shares last traded at C$12.37, with a volume of 9,025,309 shares traded.

Wall Street Analysts Forecast Growth

T has been the subject of several analyst reports. Raymond James Financial set a C$18.50 price objective on TELUS and gave the stock a "market perform" rating in a research report on Thursday, July 16th. Barclays lowered their target price on TELUS from C$19.00 to C$17.00 in a research report on Thursday, July 16th. Canadian Imperial Bank of Commerce cut their target price on TELUS from C$15.00 to C$14.00 and set a "neutral" rating on the stock in a research note on Thursday, October 8th. Canaccord Genuity Group lowered their price objective on shares of TELUS from C$16.75 to C$15.50 and set a "hold" rating on the stock in a research note on Friday, July 10th. Finally, Morgan Stanley cut shares of TELUS from an "equal weight" rating to an "underweight" rating and dropped their price target for the stock from C$20.00 to C$13.00 in a research report on Tuesday, July 21st. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, TELUS currently has an average rating of "Hold" and an average target price of C$16.30.

TELUS Stock Performance

The company has a debt-to-equity ratio of 236.85, a quick ratio of 0.52 and a current ratio of 0.67. The firm's 50 day moving average is C$12.31 and its 200-day moving average is C$15.72. The firm has a market cap of C$19.48 billion, a price-to-earnings ratio of -20.97, a price-to-earnings-growth ratio of 1.65 and a beta of 0.59.

TELUS (TSE:T - Get Free Report) NYSE: TU last announced its earnings results on Friday, July 31st. The company reported C$0.16 earnings per share for the quarter. TELUS had a negative return on equity of 6.56% and a negative net margin of 4.55%. The firm had revenue of C$4.92 billion during the quarter. Sell-side analysts anticipate that TELUS Co. will post 1.23 earnings per share for the current fiscal year.

TELUS Company Profile

TELUS Digital, a wholly-owned subsidiary of TELUS Corporation TSX: T, NYSE: TU, crafts unique and enduring experiences for customers and employees, and creates future-focused digital transformations that deliver value for our clients. We are the brand behind the brands. Our global team members are both passionate ambassadors of our clients' products and services, and technology experts resolute in our pursuit to elevate their end customer journeys, solve business challenges, mitigate risks, and drive continuous innovation.

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