Telus Digital (NYSE:TIXT) Sees Unusually-High Trading Volume - Time to Buy?

Key Points

• Telus Digital's trading volume surged by 234% on Tuesday, with 1,852,816 shares traded, but the stock price dropped by 4.5% to $3.66.
• Wall Street analysts have downgraded the stock's ratings, with the average target price now at $3.84, reflecting a shift in market sentiment.
• Recent earnings reports showed Telus Digital exceeded analysts' expectations with a $0.06 earnings per share, surpassing the consensus estimate of $0.05.

Telus Digital (NYSE:TIXT - Get Free Report) saw unusually-strong trading volume on Tuesday . Approximately 1,852,816 shares were traded during trading, an increase of 234% from the previous session's volume of 555,537 shares.The stock last traded at $3.66 and had previously closed at $3.74.

Analyst Ratings Changes

A number of research analysts have recently weighed in on TIXT shares. Barclays lowered their price objective on Telus Digital from $5.00 to $3.00 and set an "equal weight" rating on the stock in a research report on Friday, April 25th. BMO Capital Markets lowered their price objective on Telus Digital from $4.50 to $3.00 and set a "market perform" rating on the stock in a research report on Monday, May 12th. National Bank Financial cut Telus Digital from an "outperform" rating to a "sector perform" rating and set a $4.00 price objective on the stock. in a research report on Monday, July 21st. Scotiabank boosted their price target on Telus Digital from $3.00 to $3.40 and gave the stock a "sector perform" rating in a report on Tuesday, June 17th. Finally, National Bankshares cut Telus Digital from an "outperform" rating to a "sector perform" rating and boosted their price target for the stock from $3.50 to $4.00 in a report on Monday, July 21st. Ten research analysts have rated the stock with a hold rating, one has issued a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $3.69.

Telus Digital Trading Up 2.6%

The company has a current ratio of 0.84, a quick ratio of 0.86 and a debt-to-equity ratio of 0.85. The stock has a 50 day simple moving average of $3.63 and a 200-day simple moving average of $3.18. The firm has a market cap of $1.05 billion, a P/E ratio of -2.73 and a beta of 0.90.

Telus Digital (NYSE:TIXT - Get Free Report) last released its earnings results on Friday, August 1st. The company reported $0.06 earnings per share for the quarter, beating the consensus estimate of $0.05 by $0.01. The firm had revenue of $711.33 million for the quarter, compared to the consensus estimate of $660.87 million. Telus Digital had a positive return on equity of 1.99% and a negative net margin of 14.09%. On average, equities research analysts expect that Telus Digital will post 0.32 EPS for the current fiscal year.

Hedge Funds Weigh In On Telus Digital

Large investors have recently modified their holdings of the stock. Aquatic Capital Management LLC bought a new position in shares of Telus Digital during the 4th quarter valued at approximately $37,000. Two Sigma Securities LLC bought a new position in shares of Telus Digital during the 4th quarter valued at approximately $42,000. Bayesian Capital Management LP bought a new position in shares of Telus Digital during the 4th quarter valued at approximately $45,000. PDT Partners LLC bought a new position in shares of Telus Digital during the 4th quarter valued at approximately $61,000. Finally, Dynamic Technology Lab Private Ltd bought a new position in shares of Telus Digital during the 1st quarter valued at approximately $58,000. 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.