Telus Digital (NYSE:TIXT) Downgraded by Stifel Canada to "Hold"

Key Points

• Stifel Canada downgraded Telus Digital from a "strong-buy" rating to a "hold" rating, indicating a cautious outlook on the stock's performance.
• Multiple analysts have lowered their price targets for Telus Digital, with a consensus target now set at $3.81.
• Telus Digital's recent earnings report showed a positive EPS of $0.06, exceeding estimates, but with a negative net margin of 14.09%.

Stifel Canada lowered shares of Telus Digital (NYSE:TIXT - Free Report) from a strong-buy rating to a hold rating in a research note released on Tuesday morning,Zacks.com reports.

Several other research firms have also commented on TIXT. National Bankshares lowered shares of Telus Digital from a "sector perform" rating to a "tender" rating and boosted their price target for the company from $4.00 to $4.50 in a report on Wednesday, September 3rd. CIBC downgraded shares of Telus Digital from a "neutral" rating to a "tender" rating and boosted their target price for the stock from $3.40 to $4.50 in a research report on Wednesday, September 3rd. Scotiabank boosted their target price on shares of Telus Digital from $3.00 to $3.40 and gave the stock a "sector perform" rating in a research report on Tuesday, June 17th. Morgan Stanley dropped their price objective on shares of Telus Digital from $3.49 to $3.40 and set an "equal weight" rating on the stock in a report on Monday, August 4th. Finally, National Bank Financial downgraded shares of Telus Digital from an "outperform" rating to a "sector perform" rating and set a $4.00 price target on the stock. in a report on Monday, July 21st. Nine equities research analysts have rated the stock with a Hold rating, According to MarketBeat, the company presently has an average rating of "Hold" and an average target price of $3.93.

Telus Digital Stock Performance

TIXT traded up $0.04 during trading on Tuesday, hitting $4.51. The company's stock had a trading volume of 1,825,273 shares, compared to its average volume of 745,222. The firm has a market cap of $1.25 billion, a PE ratio of -3.24 and a beta of 0.91. Telus Digital has a one year low of $2.13 and a one year high of $4.60. The business's 50 day simple moving average is $3.89 and its 200-day simple moving average is $3.20. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.85.

Telus Digital (NYSE:TIXT - Get Free Report) last issued its quarterly earnings data on Friday, August 1st. The company reported $0.06 EPS for the quarter, topping analysts' consensus estimates of $0.05 by $0.01. Telus Digital had a negative net margin of 14.09% and a positive return on equity of 1.99%. The business had revenue of $711.33 million during the quarter, compared to analysts' expectations of $660.87 million. Telus Digital has set its FY 2025 guidance at 0.320-0.320 EPS. As a group, sell-side analysts predict that Telus Digital will post 0.32 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in TIXT. Mackenzie Financial Corp lifted its stake in Telus Digital by 31.1% in the fourth quarter. Mackenzie Financial Corp now owns 10,868,451 shares of the company's stock worth $42,673,000 after acquiring an additional 2,578,241 shares during the last quarter. QV Investors Inc. lifted its position in shares of Telus Digital by 25.8% during the 2nd quarter. QV Investors Inc. now owns 7,614,325 shares of the company's stock worth $27,623,000 after buying an additional 1,561,690 shares during the last quarter. Acadian Asset Management LLC increased its holdings in shares of Telus Digital by 1,347.7% in the 1st quarter. Acadian Asset Management LLC now owns 728,179 shares of the company's stock valued at $1,942,000 after acquiring an additional 677,879 shares during the period. D. E. Shaw & Co. Inc. increased its holdings in shares of Telus Digital by 365.5% in the 4th quarter. D. E. Shaw & Co. Inc. now owns 739,609 shares of the company's stock valued at $2,904,000 after acquiring an additional 580,726 shares during the period. Finally, Scoggin Management LP acquired a new position in Telus Digital in the 2nd quarter valued at $2,011,000. Hedge funds and other institutional investors own 59.55% of the company's stock.

Telus Digital Company Profile

TELUS Digital Inc design, builds, and delivers digital solutions for customer experience (CX) in the Asia-Pacific, the Central America, Europe, Africa, North America, and internationally. The company provides digital experience solutions, such as AI and bots, omnichannel CX, enterprise mobility solutions, cloud contact center, big data analytics, platform transformation, and UX/UI design; and customer experience solutions, including work anywhere/work from home, contact center outsourcing, technical support, sales growth and customer retention, healthcare/patient experience, and debt collection.