SK Telecom (NYSE:SKM) Downgraded to Strong Sell Rating by Zacks Research

Key Points

• Zacks Research downgraded SK Telecom (NYSE:SKM) from a "hold" rating to a strong sell in its latest research report.
• Analyst sentiment is mixed-to-negative — one Buy, three Hold and four Sell — leaving MarketBeat's consensus rating at "Reduce".
• Financials show a large EPS beat ($10.67 vs. $0.10 expected) but revenue of $3.0B narrowly missed estimates; the stock trades at a P/E of 53.99 with a market cap of about $14.09 billion.

SK Telecom (NYSE:SKM - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

A number of other equities research analysts have also recently commented on the stock. Weiss Ratings raised shares of SK Telecom from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, March 12th. Bank of America cut shares of SK Telecom from a "neutral" rating to an "underperform" rating in a report on Wednesday, February 18th. Wall Street Zen raised shares of SK Telecom from a "sell" rating to a "hold" rating in a report on Saturday, February 7th. Citigroup cut shares of SK Telecom from a "hold" rating to a "strong sell" rating in a report on Wednesday, February 18th. Finally, Daiwa Securities Group cut shares of SK Telecom to a "hold" rating in a report on Wednesday, January 14th. One analyst has rated the stock with a Buy rating, three have issued a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Reduce".

SK Telecom Price Performance

Shares of NYSE:SKM opened at $36.72 on Monday. The company has a 50-day simple moving average of $32.06 and a 200-day simple moving average of $25.67. SK Telecom has a one year low of $19.66 and a one year high of $40.49. The company has a debt-to-equity ratio of 0.59, a quick ratio of 1.00 and a current ratio of 1.03. The stock has a market capitalization of $14.09 billion, a price-to-earnings ratio of 53.99, a PEG ratio of 0.25 and a beta of 0.46.

SK Telecom (NYSE:SKM - Get Free Report) last announced its earnings results on Thursday, February 5th. The Wireless communications provider reported $10.67 EPS for the quarter, beating analysts' consensus estimates of $0.10 by $10.57. SK Telecom had a net margin of 2.28% and a return on equity of 3.21%. The business had revenue of $3 billion during the quarter, compared to analysts' expectations of $3.02 billion. On average, analysts predict that SK Telecom will post 2.63 EPS for the current year.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Jones Financial Companies Lllp raised its holdings in SK Telecom by 94.2% during the third quarter. Jones Financial Companies Lllp now owns 1,336 shares of the Wireless communications provider's stock worth $29,000 after purchasing an additional 648 shares in the last quarter. Kestra Advisory Services LLC purchased a new position in SK Telecom during the fourth quarter worth about $28,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new position in SK Telecom during the fourth quarter worth about $30,000. Allworth Financial LP raised its holdings in SK Telecom by 138.2% during the third quarter. Allworth Financial LP now owns 1,701 shares of the Wireless communications provider's stock worth $37,000 after purchasing an additional 987 shares in the last quarter. Finally, HM Payson & Co. raised its holdings in SK Telecom by 38.9% during the third quarter. HM Payson & Co. now owns 1,822 shares of the Wireless communications provider's stock worth $39,000 after purchasing an additional 510 shares in the last quarter.

About SK Telecom

SK Telecom Co, Ltd. NYSE: SKM is South Korea's largest wireless carrier, offering a comprehensive range of mobile telecommunications services. The company operates 5G, 4G LTE and IoT networks, providing voice, data and messaging solutions to consumers and businesses. Beyond traditional wireless services, SK Telecom delivers fixed-line broadband, digital content platforms, cloud computing and cybersecurity offerings designed to support enterprise digital transformation and the growing demand for high-speed connectivity.

Established in 1984 as Korea Mobile Telecommunications Services, SK Telecom pioneered cellular service commercialization in South Korea and has continually expanded into new technology areas.

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