Telefonica (NYSE:TEF) Sets New 52-Week High - Should You Buy?

Key Points

• Telefonica's stock price reached a new 52-week high of $5.65, reflecting a positive trading session with over 25,000 shares exchanged.
• The company announced a semi-annual dividend increase to $0.1703, up from the previous $0.16, translating to a substantial yield of 450.0%.
• Research analysts have mixed views on Telefonica, with one rating it as a buy and several maintaining a hold or sell rating, leading to a consensus rating of "Hold."

Telefonica SA (NYSE:TEF - Get Free Report) shares hit a new 52-week high on Monday . The company traded as high as $5.65 and last traded at $5.65, with a volume of 25505 shares. The stock had previously closed at $5.63.

Analyst Ratings Changes

A number of brokerages have weighed in on TEF. DZ Bank cut shares of Telefonica from a "hold" rating to a "strong sell" rating in a report on Friday, May 16th. Wall Street Zen upgraded shares of Telefonica from a "hold" rating to a "buy" rating in a research note on Thursday, May 22nd. Finally, Berenberg Bank upgraded shares of Telefonica to a "hold" rating in a research note on Thursday, June 26th. Four investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Reduce".

Telefonica Trading Up 0.1%

The company has a market cap of $30.87 billion, a P/E ratio of -11.34, a P/E/G ratio of 0.62 and a beta of 0.51. The stock's 50-day moving average is $5.32 and its two-hundred day moving average is $4.95. The company has a debt-to-equity ratio of 1.47, a current ratio of 0.85 and a quick ratio of 0.81.

Telefonica (NYSE:TEF - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The utilities provider reported $0.08 earnings per share for the quarter, meeting analysts' consensus estimates of $0.08. The company had revenue of $10.28 billion for the quarter, compared to the consensus estimate of $9.03 billion. Telefonica had a negative net margin of 5.88% and a positive return on equity of 8.57%. As a group, equities research analysts predict that Telefonica SA will post 0.3 earnings per share for the current fiscal year.

Telefonica Increases Dividend

The firm also recently declared a semi-annual dividend, which was paid on Friday, July 11th. Shareholders of record on Wednesday, June 18th were given a $0.1703 dividend. The ex-dividend date was Wednesday, June 18th. This is a boost from Telefonica's previous semi-annual dividend of $0.16. This represents a yield of 450.0%. Telefonica's payout ratio is -52.08%.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in TEF. JPMorgan Chase & Co. raised its position in Telefonica by 140.0% in the fourth quarter. JPMorgan Chase & Co. now owns 84,992 shares of the utilities provider's stock worth $342,000 after acquiring an additional 49,580 shares during the period. Wells Fargo & Company MN increased its stake in shares of Telefonica by 4.4% in the fourth quarter. Wells Fargo & Company MN now owns 143,643 shares of the utilities provider's stock worth $577,000 after purchasing an additional 6,090 shares in the last quarter. Envestnet Asset Management Inc. increased its stake in shares of Telefonica by 15.9% in the fourth quarter. Envestnet Asset Management Inc. now owns 44,151 shares of the utilities provider's stock worth $177,000 after purchasing an additional 6,059 shares in the last quarter. Russell Investments Group Ltd. increased its stake in shares of Telefonica by 30.7% in the fourth quarter. Russell Investments Group Ltd. now owns 28,281 shares of the utilities provider's stock worth $114,000 after purchasing an additional 6,643 shares in the last quarter. Finally, Raymond James Financial Inc. purchased a new stake in shares of Telefonica in the fourth quarter worth $1,022,000. 1.14% of the stock is currently owned by institutional investors.

Telefonica Company Profile

Telefónica, SA, together with its subsidiaries, provides telecommunications services in Europe and Latin America. The company offers mobile and related services and products, such as mobile voice, value added, mobile data and internet, wholesale, corporate, roaming, fixed wireless, and trunking and paging services.