Telefonica SA (NYSE:TEF) Given Average Rating of "Reduce" by Brokerages

Key Points

• Telefonica SA has received an average rating of "Reduce" from five research firms, with one analyst recommending a sell and four holding the stock.
• Institutional investors have shown significant interest, with Goldman Sachs increasing its stake by 20.6% and Arrowstreet Capital boosting its holdings by an astonishing 2,896.4% in the second quarter.
• The company's recent earnings report showed a positive return on equity of 8.57% while meeting consensus earnings of $0.08 per share, with revenue reaching $10.28 billion, well above analyst expectations.

Telefonica SA (NYSE:TEF - Get Free Report) has been given an average rating of "Reduce" by the five research firms that are currently covering the firm, MarketBeat.com reports. One research analyst has rated the stock with a sell rating and four have issued a hold rating on the company.

Separately, Berenberg Bank raised Telefonica to a "hold" rating in a research note on Thursday, June 26th.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of TEF. Osaic Holdings Inc. grew its holdings in shares of Telefonica by 47.9% during the 2nd quarter. Osaic Holdings Inc. now owns 29,272 shares of the utilities provider's stock worth $153,000 after acquiring an additional 9,480 shares during the period. Orion Porfolio Solutions LLC grew its holdings in shares of Telefonica by 9.3% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 104,396 shares of the utilities provider's stock worth $546,000 after acquiring an additional 8,883 shares during the period. Tower Research Capital LLC TRC grew its holdings in shares of Telefonica by 110.3% during the 2nd quarter. Tower Research Capital LLC TRC now owns 17,804 shares of the utilities provider's stock worth $93,000 after acquiring an additional 9,340 shares during the period. Corient Private Wealth LLC grew its holdings in shares of Telefonica by 65.2% during the 2nd quarter. Corient Private Wealth LLC now owns 86,231 shares of the utilities provider's stock worth $451,000 after acquiring an additional 34,048 shares during the period. Finally, Smartleaf Asset Management LLC grew its holdings in shares of Telefonica by 31.9% during the 2nd quarter. Smartleaf Asset Management LLC now owns 26,600 shares of the utilities provider's stock worth $138,000 after acquiring an additional 6,429 shares during the period. Hedge funds and other institutional investors own 1.14% of the company's stock.

Telefonica Price Performance

NYSE:TEF traded down $0.08 during trading hours on Friday, hitting $5.18. 470,730 shares of the company's stock traded hands, compared to its average volume of 541,035. The firm has a market cap of $29.34 billion, a P/E ratio of -10.78, a P/E/G ratio of 0.60 and a beta of 0.56. Telefonica has a 52 week low of $3.89 and a 52 week high of $5.72. The business's fifty day simple moving average is $5.35 and its two-hundred day simple moving average is $5.11. The company has a quick ratio of 0.81, a current ratio of 0.85 and a debt-to-equity ratio of 1.47.

Telefonica (NYSE:TEF - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The utilities provider reported $0.08 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.08. Telefonica had a positive return on equity of 8.57% and a negative net margin of 5.88%.The firm had revenue of $10.28 billion during the quarter, compared to analyst estimates of $9.03 billion. On average, research analysts anticipate that Telefonica will post 0.3 earnings per share for the current fiscal year.

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.