Telefonica Brasil (NYSE:VIV) Reaches New 1-Year Low - Here's Why

Key Points

• Telefonica Brasil shares fell to a new 52-week low of $11.48, trading below both their 50-day and 200-day moving averages.
• Analyst sentiment has weakened, with several downgrades and a consensus “Reduce” rating; the average price target is $14.26.
• The company missed quarterly EPS expectations, reporting $0.19 versus $0.23 forecast, while revenue matched estimates at $3.04 billion. Telefonica Brasil also paid a $0.4562-per-share dividend, with a 76.92% payout ratio.

Shares of Telefonica Brasil S.A. (NYSE:VIV - Get Free Report) reached a new 52-week low during trading on Wednesday . The company traded as low as $11.48 and last traded at $11.57, with a volume of 1928528 shares. The stock had previously closed at $11.64.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on VIV. Scotiabank reduced their target price on Telefonica Brasil from $15.70 to $15.40 and set a "sector perform" rating on the stock in a report on Wednesday, May 27th. Zacks Research lowered Telefonica Brasil from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, May 13th. Weiss Ratings downgraded Telefonica Brasil from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, July 7th. The Goldman Sachs Group began coverage on Telefonica Brasil in a research note on Monday, May 18th. They issued a "sell" rating and a $13.90 price objective on the stock. Finally, Barclays set a $16.00 target price on Telefonica Brasil in a report on Wednesday, July 29th. One analyst has rated the stock with a Buy rating, six have issued a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Reduce" and an average target price of $14.26.

Telefonica Brasil Trading Down 0.6%

The firm has a market cap of $18.82 billion, a price-to-earnings ratio of 14.83, a price-to-earnings-growth ratio of 0.66 and a beta of 0.57. The company has a quick ratio of 0.89, a current ratio of 0.95 and a debt-to-equity ratio of 0.22. The business has a 50 day moving average price of $13.16 and a 200-day moving average price of $14.58.

Telefonica Brasil (NYSE:VIV - Get Free Report) last released its quarterly earnings results on Monday, July 27th. The Wireless communications provider reported $0.19 EPS for the quarter, missing the consensus estimate of $0.23 by ($0.04). The company had revenue of $3.04 billion for the quarter, compared to analyst estimates of $3.04 billion. Telefonica Brasil had a return on equity of 9.72% and a net margin of 10.64%. As a group, research analysts expect that Telefonica Brasil S.A. will post 0.96 EPS for the current fiscal year.

Telefonica Brasil Announces Dividend

The firm also recently announced a dividend, which was paid on Tuesday, July 21st. Stockholders of record on Friday, May 22nd were paid a dividend of $0.4562 per share. The ex-dividend date was Friday, May 22nd. Telefonica Brasil's dividend payout ratio (DPR) is currently 76.92%.

Institutional Trading of Telefonica Brasil

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Royal Bank of Canada grew its stake in Telefonica Brasil by 30.3% in the first quarter. Royal Bank of Canada now owns 431,051 shares of the Wireless communications provider's stock worth $3,758,000 after purchasing an additional 100,315 shares in the last quarter. Advisors Asset Management Inc. bought a new position in Telefonica Brasil in the 1st quarter worth about $52,000. Rhumbline Advisers raised its stake in Telefonica Brasil by 337.7% during the 1st quarter. Rhumbline Advisers now owns 4,233 shares of the Wireless communications provider's stock valued at $37,000 after acquiring an additional 3,266 shares in the last quarter. Cetera Investment Advisers grew its position in Telefonica Brasil by 13.8% in the 2nd quarter. Cetera Investment Advisers now owns 48,646 shares of the Wireless communications provider's stock valued at $555,000 after buying an additional 5,902 shares in the last quarter. Finally, JPMorgan Chase & Co. boosted its holdings in shares of Telefonica Brasil by 31.1% in the second quarter. JPMorgan Chase & Co. now owns 79,937 shares of the Wireless communications provider's stock valued at $911,000 after acquiring an additional 18,975 shares in the last quarter. Institutional investors own 5.16% of the company's stock.

About Telefonica Brasil

Telefônica Brasil SA, commonly marketed under the Vivo brand, is one of Brazil's largest telecommunications providers, offering a broad range of consumer and enterprise communications services. The company's core activities include mobile voice and data services, fixed-line telephony, broadband internet (including fiber-to-the-home), and pay-TV solutions. It also provides ICT and managed services for business customers, such as cloud, data center, connectivity, Internet of Things (IoT) and security solutions.

Vivo operates a nationwide network across Brazil and serves both individual consumers and corporate clients.

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