SK Telecom (NYSE:SKM) Sets New 52-Week High - Time to Buy?

Key Points

• 52-week high: SK Telecom shares hit a new 52-week high of $36.80 (last at $36.6380) on mid-day trading with about 1.16 million shares changing hands.
• Analyst sentiment weak: Multiple firms have recently downgraded the stock and MarketBeat data shows a consensus rating of "Reduce" (1 Buy, 4 Hold, 3 Sell).
• Mixed fundamentals: The company reported an outsized EPS beat (EPS $10.67 vs. $0.10 estimate) but slightly missed revenue expectations, while valuation is rich (P/E ~53.95, PEG ~5.10) and several institutional investors materially increased stakes.

Shares of SK Telecom Co., Ltd. (NYSE:SKM - Get Free Report) reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $36.80 and last traded at $36.6380, with a volume of 1160749 shares. The stock had previously closed at $36.10.

Analyst Ratings Changes

Several research firms have recently commented on SKM. Daiwa Securities Group downgraded shares of SK Telecom to a "hold" rating in a research note on Wednesday, January 14th. Zacks Research downgraded SK Telecom from a "strong-buy" rating to a "hold" rating in a research note on Friday, March 27th. Bank of America lowered SK Telecom from a "neutral" rating to an "underperform" rating in a research report on Wednesday, February 18th. Citigroup downgraded SK Telecom from a "hold" rating to a "strong sell" rating in a research note on Wednesday, February 18th. Finally, Wall Street Zen upgraded SK Telecom from a "sell" rating to a "hold" rating in a report on Saturday, February 7th. One equities research analyst has rated the stock with a Buy rating, four have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Reduce".

SK Telecom Price Performance

The company has a debt-to-equity ratio of 0.59, a current ratio of 1.03 and a quick ratio of 1.00. The stock has a market capitalization of $14.08 billion, a P/E ratio of 53.95, a PEG ratio of 5.10 and a beta of 0.46. The stock's fifty day moving average is $30.45 and its 200-day moving average is $24.42.

SK Telecom (NYSE:SKM - Get Free Report) last posted its earnings results on Thursday, February 5th. The Wireless communications provider reported $10.67 earnings per share for the quarter, beating the consensus estimate of $0.10 by $10.57. The company had revenue of $3 billion for the quarter, compared to analyst estimates of $3.02 billion. SK Telecom had a return on equity of 3.21% and a net margin of 2.28%. On average, equities analysts anticipate that SK Telecom Co., Ltd. will post 2.27 earnings per share for the current year.

Hedge Funds Weigh In On SK Telecom

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Millennium Management LLC lifted its holdings in shares of SK Telecom by 202.4% during the fourth quarter. Millennium Management LLC now owns 606,347 shares of the Wireless communications provider's stock worth $12,448,000 after buying an additional 405,863 shares during the last quarter. Robeco Institutional Asset Management B.V. increased its position in SK Telecom by 17.9% during the fourth quarter. Robeco Institutional Asset Management B.V. now owns 2,462,769 shares of the Wireless communications provider's stock worth $50,561,000 after acquiring an additional 374,428 shares during the period. JPMorgan Chase & Co. raised its stake in SK Telecom by 80,378.7% during the 4th quarter. JPMorgan Chase & Co. now owns 328,353 shares of the Wireless communications provider's stock valued at $6,741,000 after purchasing an additional 327,945 shares during the last quarter. UBS Group AG boosted its holdings in SK Telecom by 215.4% in the 4th quarter. UBS Group AG now owns 426,729 shares of the Wireless communications provider's stock valued at $8,761,000 after purchasing an additional 291,418 shares during the period. Finally, Citadel Advisors LLC acquired a new stake in SK Telecom in the 3rd quarter worth $4,319,000.

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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