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

Key Points

• Telus Digital (NYSE:TIXT) experienced a significant trading volume increase of 140%, with 1,648,893 shares traded during mid-day compared to the previous session.
• Following recent earnings results, analysts have mixed ratings for Telus Digital, with BMO Capital Markets lowering their price target to $3.00 and National Bank assigning a target of $4.00.
• Institutional investors and hedge funds hold 59.55% of Telus Digital’s stock, indicating strong support from major investment firms.

Telus Digital (NYSE:TIXT - Get Free Report) saw strong trading volume on Wednesday . 1,648,893 shares changed hands during mid-day trading, an increase of 140% from the previous session's volume of 687,437 shares.The stock last traded at $4.49 and had previously closed at $4.48.

Wall Street Analysts Forecast Growth

Several research analysts have commented on TIXT shares. BMO Capital Markets cut their price target 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. CIBC reiterated a "tender" rating and set a $4.50 target price (up previously from $3.40) on shares of Telus Digital in a report on Wednesday. Wall Street Zen cut shares of Telus Digital from a "buy" rating to a "hold" rating in a research note on Sunday, July 20th. National Bank Financial cut Telus Digital from an "outperform" rating to a "sector perform" rating and set a $4.00 price target for the company. in a report on Monday, July 21st. Finally, National Bankshares lowered shares of Telus Digital from an "outperform" rating to a "sector perform" rating and increased their price objective for the stock from $3.50 to $4.00 in a report on Monday, July 21st. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and eight have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $3.81.

Telus Digital Stock Down 0.1%

The company has a debt-to-equity ratio of 0.85, a current ratio of 0.84 and a quick ratio of 0.84. The stock has a market cap of $1.24 billion, a P/E ratio of -3.22 and a beta of 0.91. The stock's fifty day simple moving average is $3.84 and its 200-day simple moving average is $3.18.

Telus Digital (NYSE:TIXT - Get Free Report) last posted its earnings results on Friday, August 1st. The company reported $0.06 earnings per share (EPS) for the quarter, beating 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 analyst estimates of $660.87 million. Telus Digital has set its FY 2025 guidance at 0.320-0.320 EPS. On average, research analysts anticipate that Telus Digital will post 0.32 earnings per share for the current year.

Hedge Funds Weigh In On Telus Digital

Hedge funds and other institutional investors have recently modified their holdings of the stock. Public Employees Retirement System of Ohio raised its holdings in shares of Telus Digital by 18.8% during the fourth quarter. Public Employees Retirement System of Ohio now owns 34,862 shares of the company's stock valued at $137,000 after acquiring an additional 5,509 shares during the period. Aquatic Capital Management LLC bought a new position in Telus Digital during the fourth quarter valued at about $37,000. TD Asset Management Inc raised its holdings in Telus Digital by 4.0% in the 1st quarter. TD Asset Management Inc now owns 260,719 shares of the company's stock worth $699,000 after acquiring an additional 9,992 shares during the period. Gabelli Funds LLC bought a new position in Telus Digital during the second quarter worth $36,000. Finally, Bank of Nova Scotia raised its stake in shares of Telus Digital by 4.1% in the 1st quarter. Bank of Nova Scotia now owns 257,784 shares of the company's stock valued at $692,000 after buying an additional 10,053 shares in the last quarter. 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.

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