TELUS Digital (NYSE:TIXT) Shares Gap Down - Here's Why

TELUS Digital (NYSE:TIXT - Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $3.06, but opened at $2.58. TELUS Digital shares last traded at $2.60, with a volume of 1,114,591 shares changing hands.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on TIXT. National Bank Financial upgraded shares of TELUS Digital from a "sector perform" rating to an "outperform" rating in a report on Friday, May 9th. National Bankshares dropped their price objective on shares of TELUS Digital from $4.25 to $3.00 and set a "sector perform" rating on the stock in a report on Friday, April 25th. BMO Capital Markets dropped their price objective on shares of TELUS Digital from $4.50 to $3.00 and set a "market perform" rating on the stock in a report on Monday, May 12th. TD Securities upped their price objective on shares of TELUS Digital from $3.75 to $4.00 and gave the company a "hold" rating in a report on Friday, February 14th. Finally, Scotiabank lowered their target price on shares of TELUS Digital from $5.00 to $3.00 and set a "sector perform" rating on the stock in a report on Tuesday, April 29th. Two investment analysts have rated the stock with a sell rating, twelve have issued a hold rating, two have issued a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $4.07.

TELUS Digital Stock Up 7.5%

The stock's 50-day simple moving average is $2.61 and its 200-day simple moving average is $3.19. The firm has a market capitalization of $788.36 million, a P/E ratio of -8.17, a P/E/G ratio of 4.71 and a beta of 0.80. The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 0.72.

TELUS Digital (NYSE:TIXT - Get Free Report) last released its earnings results on Friday, May 9th. The company reported $0.06 earnings per share for the quarter, meeting analysts' consensus estimates of $0.06. The firm had revenue of $647.04 million during the quarter, compared to the consensus estimate of $650.18 million. TELUS Digital had a negative net margin of 2.30% and a positive return on equity of 5.73%. As a group, research analysts predict that TELUS Digital will post 0.32 earnings per share for the current fiscal year.

Institutional Trading of TELUS Digital

Institutional investors have recently modified their holdings of the business. Public Employees Retirement System of Ohio lifted its stake in shares of TELUS Digital by 18.8% during the 4th quarter. Public Employees Retirement System of Ohio now owns 34,862 shares of the company's stock valued at $137,000 after buying an additional 5,509 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in shares of TELUS Digital by 209.4% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 2,095,220 shares of the company's stock valued at $8,222,000 after buying an additional 1,418,119 shares in the last quarter. Bank of America Corp DE lifted its stake in shares of TELUS Digital by 14.3% during the 4th quarter. Bank of America Corp DE now owns 419,723 shares of the company's stock valued at $1,645,000 after buying an additional 52,561 shares in the last quarter. Two Sigma Investments LP lifted its stake in shares of TELUS Digital by 578.8% during the 4th quarter. Two Sigma Investments LP now owns 497,821 shares of the company's stock valued at $1,951,000 after buying an additional 424,484 shares in the last quarter. Finally, BNP Paribas Financial Markets purchased a new stake in TELUS Digital in the 4th quarter worth approximately $101,000. 59.55% of the stock is currently owned by hedge funds and other institutional investors.

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.