SK Telecom (NYSE:SKM) Shares Up 5.7% - Still a Buy?

Key Points

• SK Telecom shares jumped about 5.7% intraday to $31.93 on Tuesday, with trading volume roughly 17% below the average session level.
• Analyst sentiment has weakened recently—one Buy, four Hold and three Sell—leaving an average MarketBeat rating of Reduce.
• The company reported an outsized EPS of $10.67 versus $0.10 expected while revenue was $3.0B (slightly below estimates), and the stock trades at a high P/E of 46.99 with a market cap near $12.3B.

SK Telecom Co., Ltd. (NYSE:SKM - Get Free Report)'s stock price shot up 5.7% during mid-day trading on Tuesday . The company traded as high as $31.80 and last traded at $31.9340. 1,362,870 shares changed hands during trading, a decline of 17% from the average session volume of 1,638,170 shares. The stock had previously closed at $30.22.

Analysts Set New Price Targets

A number of brokerages have issued reports on SKM. Zacks Research lowered SK Telecom from a "strong-buy" rating to a "hold" rating in a research report on Friday, March 27th. Citigroup lowered SK Telecom from a "hold" rating to a "strong sell" rating in a research report on Wednesday, February 18th. Daiwa Securities Group lowered SK Telecom to a "hold" rating in a research report on Wednesday, January 14th. Bank of America lowered SK Telecom from a "neutral" rating to an "underperform" rating in a research report on Wednesday, February 18th. Finally, Wall Street Zen upgraded SK Telecom from a "sell" rating to a "hold" rating in a research report on Saturday, February 7th. One research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Reduce".

SK Telecom Stock Up 5.8%

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 50 day moving average price of $29.72 and a 200 day moving average price of $23.96. The company has a market cap of $12.27 billion, a P/E ratio of 46.99, a P/E/G ratio of 4.14 and a beta of 0.46.

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

Institutional Trading of SK Telecom

Hedge funds and other institutional investors have recently modified their holdings of the company. Kestra Advisory Services LLC bought a new stake in shares of SK Telecom in the 4th quarter worth $28,000. Jones Financial Companies Lllp raised its position in shares of 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 during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new stake in shares of SK Telecom during the fourth quarter worth $30,000. Allworth Financial LP raised its position in shares of 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 during the period. Finally, HM Payson & Co. raised its position in shares of 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 during the period.

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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