TIM (NYSE:TIMB) Shares Gap Up - What's Next?

Key Points

• TIM shares surged at the open, rising from a prior close of $17.83 to $19.80 and last trading near $19.93, with roughly 274,490 shares changing hands.
• Analyst sentiment remains mixed but leans cautious: TIM has an average “Hold” rating and a consensus price target of $24.82, while Barclays and Wall Street Zen recently downgraded the stock.
• The company reported quarterly revenue of $1.35 billion and EPS of $0.42, and announced a $0.2102 special dividend payable January 29 to shareholders of record September 28.

TIM S.A. Sponsored ADR (NYSE:TIMB - Get Free Report)'s stock price gapped up prior to trading on Monday. The stock had previously closed at $17.83, but opened at $19.80. TIM shares last traded at $19.9260, with a volume of 274,490 shares changing hands.

Analyst Ratings Changes

Several research analysts have recently commented on the company. Barclays cut their price objective on TIM from $28.00 to $24.00 and set an "equal weight" rating for the company in a report on Friday, July 10th. Weiss Ratings downgraded shares of TIM from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday, September 14th. Morgan Stanley reiterated a "market perform" rating and set a $22.00 target price on shares of TIM in a research report on Thursday, August 20th. Wall Street Zen cut shares of TIM from a "buy" rating to a "hold" rating in a research note on Saturday, August 29th. Finally, Santander raised shares of TIM from a "neutral" rating to an "outperform" rating in a report on Monday, June 22nd. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, TIM has an average rating of "Hold" and a consensus price target of $24.82.

TIM Price Performance

The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.82 and a current ratio of 0.85. The stock has a market capitalization of $9.32 billion, a P/E ratio of 11.57, a price-to-earnings-growth ratio of 1.19 and a beta of 0.33. The firm has a 50-day moving average price of $18.39 and a 200 day moving average price of $21.76.

TIM (NYSE:TIMB - Get Free Report) last released its earnings results on Wednesday, June 17th. The company reported $0.42 earnings per share for the quarter. TIM had a return on equity of 17.99% and a net margin of 15.73%.The company had revenue of $1.35 billion during the quarter. On average, analysts expect that TIM S.A. Sponsored ADR will post 1.82 EPS for the current year.

TIM Dividend Announcement

The firm also recently disclosed a special dividend, which will be paid on Friday, January 29th. Stockholders of record on Monday, September 28th will be paid a $0.2102 dividend. The ex-dividend date of this dividend is Monday, September 28th. TIM's dividend payout ratio is 71.01%.

Hedge Funds Weigh In On TIM

A number of large investors have recently added to or reduced their stakes in the business. Hsbc Holdings PLC grew its position in TIM by 55.5% during the 1st quarter. Hsbc Holdings PLC now owns 135,167 shares of the company's stock worth $3,578,000 after acquiring an additional 48,232 shares during the last quarter. Bank of America Corp DE grew its holdings in shares of TIM by 199.8% in the first quarter. Bank of America Corp DE now owns 251,330 shares of the company's stock worth $6,658,000 after purchasing an additional 167,504 shares during the last quarter. Assetmark Inc. grew its holdings in shares of TIM by 19.0% in the first quarter. Assetmark Inc. now owns 490,478 shares of the company's stock worth $12,993,000 after purchasing an additional 78,379 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its stake in shares of TIM by 129.9% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 62,279 shares of the company's stock worth $1,211,000 after buying an additional 35,192 shares during the period. Finally, Summit Securities Group LLC bought a new stake in TIM during the 1st quarter valued at $127,000.

TIM Company Profile

TIM SA is a Brazilian telecommunications company that provides mobile and fixed-line communications services to consumers, businesses and government customers. Its offerings include voice and messaging, mobile data, broadband internet, digital services and related connectivity solutions.

The company operates a nationwide telecommunications network in Brazil and serves customers through retail stores, digital channels and business-focused sales operations. TIM also provides enterprise services such as connectivity, information technology and communications solutions, including products related to the Internet of Things, cloud computing and managed networks.

TIM SA traces its roots to the launch of TIM Brasil in the late 1990s and is part of the Telecom Italia Group.

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