Telus Digital (NYSE:TIXT) Sees Strong Trading Volume - Still a 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) shares saw an uptick in trading volume on Wednesday . 1,648,893 shares changed hands during 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

A number of brokerages have recently issued reports on TIXT. National Bank Financial lowered shares of Telus Digital from an "outperform" rating to a "sector perform" rating and set a $4.00 price target on the stock. in a research note on Monday, July 21st. Stifel Nicolaus lowered shares of Telus Digital from a "buy" rating to a "hold" rating and boosted their price target for the stock from $4.00 to $4.50 in a research note on Wednesday, September 3rd. CIBC lowered shares of Telus Digital from a "neutral" rating to a "tender" rating and boosted their price target for the stock from $3.40 to $4.50 in a research note on Wednesday, September 3rd. Stifel Canada lowered shares of Telus Digital from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 2nd. Finally, Scotiabank upped their target price on shares of Telus Digital from $3.40 to $4.50 and gave the stock a "sector perform" rating in a research report on Thursday. Nine analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $3.93.

Telus Digital Stock Up 0.8%

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 firm's 50-day simple moving average is $3.89 and its two-hundred day simple moving average is $3.20. The company has a market capitalization of $1.25 billion, a price-to-earnings ratio of -3.24 and a beta of 0.91.

Telus Digital (NYSE:TIXT - Get Free Report) last issued its earnings results on Friday, August 1st. The company reported $0.06 earnings per share for the quarter, topping the consensus estimate 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 company had revenue of $711.33 million for the quarter, compared to analyst estimates of $660.87 million. Telus Digital has set its FY 2025 guidance at 0.320-0.320 EPS. Sell-side analysts predict that Telus Digital will post 0.32 EPS for the current fiscal year.

Institutional Trading of Telus Digital

Several large investors have recently modified their holdings of TIXT. Gabelli Funds LLC acquired a new stake in shares of Telus Digital in the second quarter valued at approximately $36,000. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Telus Digital in the first quarter valued at approximately $58,000. PDT Partners LLC grew its position in shares of Telus Digital by 79.9% in the first quarter. PDT Partners LLC now owns 28,058 shares of the company's stock valued at $75,000 after purchasing an additional 12,458 shares during the last quarter. Avior Wealth Management LLC acquired a new stake in shares of Telus Digital in the second quarter valued at approximately $85,000. Finally, BNP Paribas Financial Markets purchased a new position in shares of Telus Digital during the fourth quarter valued at approximately $101,000. 59.55% of the stock is currently owned by institutional investors and hedge funds.

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.