Telus Digital (NYSE:TIXT) Sees Large Volume Increase - Should You 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 an uptick in trading volume on Tuesday . 1,852,816 shares were traded during mid-day 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 Upgrades and Downgrades

A number of research analysts have recently weighed in on TIXT shares. Barclays dropped their price target on Telus Digital from $5.00 to $3.00 and set an "equal weight" rating for the company in a research report on Friday, April 25th. Morgan Stanley decreased their price target on Telus Digital from $3.49 to $3.40 and set an "equal weight" rating on the stock in a research note on Monday. BMO Capital Markets lowered their price target on Telus Digital from $4.50 to $3.00 and set a "market perform" rating for the company in a report on Monday, May 12th. Wall Street Zen cut Telus Digital from a "buy" rating to a "hold" rating in a research report on Sunday, July 20th. Finally, National Bankshares downgraded Telus Digital from an "outperform" rating to a "sector perform" rating and raised their target price for the company from $3.50 to $4.00 in a report on Monday, July 21st. Ten analysts have rated the stock with a hold rating, one has given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $3.69.

Telus Digital Trading Up 1.0%

The company has a market capitalization of $1.01 billion, a PE ratio of -2.64 and a beta of 0.90. The company's fifty day moving average is $3.60 and its 200-day moving average is $3.18. The company has a debt-to-equity ratio of 0.85, a current ratio of 0.84 and a quick ratio of 0.86.

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

Hedge Funds Weigh In On Telus Digital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Aquatic Capital Management LLC purchased a new stake in Telus Digital during the fourth quarter worth approximately $37,000. Two Sigma Securities LLC bought a new position in shares of Telus Digital during the 4th quarter valued at about $42,000. Bayesian Capital Management LP purchased a new stake in shares of Telus Digital in the fourth quarter worth approximately $45,000. PDT Partners LLC purchased a new stake in shares of Telus Digital in the fourth quarter worth approximately $61,000. Finally, Dynamic Technology Lab Private Ltd purchased a new stake in shares of Telus Digital in the first quarter worth approximately $58,000. Institutional investors and hedge funds own 59.55% of the company's stock.

About Telus Digital

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.