SK Telecom (NYSE:SKM) Shares Gap Up After Analyst Upgrade

Key Points

• SK Telecom shares gapped up after JPMorgan Chase upgraded the stock from neutral to overweight, with the shares opening above the prior close on Thursday.
• Other analysts have issued mixed views recently, but the stock’s overall consensus remains “Reduce” with one Buy, four Hold, and two Sell ratings.
• The company recently beat earnings expectations, reporting $0.57 EPS versus $0.47 expected, though revenue came in slightly below estimates at $2.92 billion.

SK Telecom Co., Ltd. (NYSE:SKM - Get Free Report)'s share price gapped up prior to trading on Thursday after JPMorgan Chase & Co. upgraded the stock from a neutral rating to an overweight rating. The stock had previously closed at $32.26, but opened at $33.88. SK Telecom shares last traded at $32.9010, with a volume of 332,375 shares.

A number of other brokerages have also weighed in on SKM. Zacks Research upgraded shares of SK Telecom from a "strong sell" rating to a "hold" rating in a report on Tuesday, May 26th. HSBC upgraded SK Telecom from a "reduce" rating to a "hold" rating in a research note on Thursday, May 7th. Weiss Ratings downgraded shares of SK Telecom from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, May 27th. Finally, Wall Street Zen raised SK Telecom from a "hold" rating to a "buy" rating in a report on Saturday, July 4th. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Reduce".

Institutional Investors Weigh In On SK Telecom

Institutional investors and hedge funds have recently made changes to their positions in the stock. Kestra Advisory Services LLC purchased a new position in SK Telecom in the 4th quarter worth $28,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new stake in SK Telecom during the 4th quarter valued at about $30,000. Allworth Financial LP increased its holdings in shares of SK Telecom by 138.2% in the third quarter. Allworth Financial LP now owns 1,701 shares of the Wireless communications provider's stock valued at $37,000 after purchasing an additional 987 shares during the period. Wexford Capital LP acquired a new position in shares of SK Telecom in the third quarter valued at about $39,000. Finally, Matthews International Capital Management LLC raised its stake in shares of SK Telecom by 50.4% in the fourth quarter. Matthews International Capital Management LLC now owns 2,491 shares of the Wireless communications provider's stock worth $51,000 after purchasing an additional 835 shares during the last quarter.

SK Telecom Stock Performance

The company has a quick ratio of 1.15, a current ratio of 1.18 and a debt-to-equity ratio of 0.57. The stock has a market capitalization of $12.56 billion, a PE ratio of 54.54, a PEG ratio of 0.19 and a beta of 0.63. The firm has a 50 day moving average price of $36.39 and a 200-day moving average price of $31.78.

SK Telecom (NYSE:SKM - Get Free Report) last issued its earnings results on Friday, May 8th. The Wireless communications provider reported $0.57 EPS for the quarter, beating analysts' consensus estimates of $0.47 by $0.10. SK Telecom had a return on equity of 2.78% and a net margin of 2.03%.The firm had revenue of $2.92 billion for the quarter, compared to analyst estimates of $2.98 billion. Research analysts expect that SK Telecom Co., Ltd. will post 2.76 EPS for the current fiscal year.

SK Telecom Company Profile

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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