Telefonica Brasil (NYSE:VIV) Shares Gap Down After Analyst Downgrade

Key Points

• UBS downgrade — UBS cut Telefonica Brasil from a Buy to a Sell, causing the stock to gap down premarket (closed $16.27, opened $15.66; last traded about $16.09 on ~148,503 shares).
• Analyst outlook is mixed with MarketBeat showing an average rating of "Hold" and an average target price of $13.12 (1 Strong Buy, 3 Buy, 2 Hold, 3 Sell).
• Recent results and fundamentals: quarterly EPS beat at $0.22 vs. $0.17 consensus while revenue slightly missed, market cap roughly $26.2B and PE around 22.99, with institutional ownership near 5.16%.

Telefonica Brasil S.A. (NYSE:VIV - Get Free Report)'s stock price gapped down before the market opened on Wednesday after UBS Group downgraded the stock from a buy rating to a sell rating. The stock had previously closed at $16.27, but opened at $15.66. Telefonica Brasil shares last traded at $16.0880, with a volume of 148,503 shares changing hands.

VIV has been the topic of a number of other research reports. Wall Street Zen upgraded shares of Telefonica Brasil from a "buy" rating to a "strong-buy" rating in a research report on Sunday, January 11th. Bank of America started coverage on shares of Telefonica Brasil in a research note on Thursday, December 11th. They set an "underperform" rating and a $14.00 target price for the company. Weiss Ratings raised Telefonica Brasil from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, February 25th. Finally, Zacks Research raised Telefonica Brasil from a "hold" rating to a "strong-buy" rating in a report on Monday, February 9th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $13.12.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Rhumbline Advisers grew its position in shares of 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 during the period. Arax Advisory Partners raised its holdings in Telefonica Brasil by 54.4% in the 4th quarter. Arax Advisory Partners now owns 3,773 shares of the Wireless communications provider's stock worth $45,000 after purchasing an additional 1,330 shares during the period. Advisors Asset Management Inc. purchased a new position in Telefonica Brasil during the first quarter valued at $52,000. EverSource Wealth Advisors LLC lifted its position in Telefonica Brasil by 214.0% during the second quarter. EverSource Wealth Advisors LLC now owns 4,766 shares of the Wireless communications provider's stock valued at $54,000 after purchasing an additional 3,248 shares in the last quarter. Finally, PNC Financial Services Group Inc. grew its holdings in Telefonica Brasil by 45.7% during the second quarter. PNC Financial Services Group Inc. now owns 5,163 shares of the Wireless communications provider's stock valued at $59,000 after purchasing an additional 1,619 shares during the period. 5.16% of the stock is currently owned by institutional investors.

Telefonica Brasil Stock Performance

The business has a 50-day simple moving average of $14.39 and a 200 day simple moving average of $13.13. The company has a debt-to-equity ratio of 0.22, a current ratio of 1.00 and a quick ratio of 0.94. The firm has a market cap of $26.20 billion, a PE ratio of 22.99, a PEG ratio of 0.72 and a beta of 0.68.

Telefonica Brasil (NYSE:VIV - Get Free Report) last announced its quarterly earnings data on Monday, February 23rd. The Wireless communications provider reported $0.22 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.17 by $0.05. The company had revenue of $2.83 billion during the quarter, compared to the consensus estimate of $2.88 billion. Telefonica Brasil had a return on equity of 9.15% and a net margin of 10.42%. Equities research analysts forecast that Telefonica Brasil S.A. will post 0.6 EPS for the current year.

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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