Telus Digital (NYSE:TIXT) Shares Gap Down - Should You Sell?

Telus Digital (NYSE:TIXT - Get Free Report)'s share price gapped down prior to trading on Monday . The stock had previously closed at $4.00, but opened at $3.88. Telus Digital shares last traded at $3.99, with a volume of 65,428 shares changing hands.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the company. National Bank Financial downgraded Telus Digital from an "outperform" rating to a "sector perform" rating and set a $4.00 price objective for the company. in a report on Monday. Scotiabank increased their price objective on Telus Digital from $3.00 to $3.40 and gave the company a "sector perform" rating in a report on Tuesday, June 17th. BMO Capital Markets decreased their price objective on shares of Telus Digital from $4.50 to $3.00 and set a "market perform" rating for the company in a research report on Monday, May 12th. Wall Street Zen downgraded shares of Telus Digital from a "buy" rating to a "hold" rating in a research report on Sunday. Finally, CIBC cut their target price on shares of Telus Digital from $4.50 to $3.40 and set a "neutral" rating on the stock in a research note on Friday, June 13th. One equities research analyst has rated the stock with a sell rating, fourteen have given a hold rating, one has given a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average price target of $3.88.

Telus Digital Price Performance

The stock has a market capitalization of $1.12 billion, a price-to-earnings ratio of -8.32 and a beta of 0.90. The business's fifty day moving average price is $3.38 and its 200-day moving average price is $3.15. The company has a debt-to-equity ratio of 0.70, a current ratio of 0.86 and a quick ratio of 0.86.

Telus Digital (NYSE:TIXT - Get Free Report) last announced its quarterly earnings results on Friday, May 9th. The company reported $0.06 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.06. Telus Digital had a positive return on equity of 3.40% and a negative net margin of 4.27%. The business had revenue of $647.04 million during the quarter, compared to the consensus estimate of $650.18 million. On average, research analysts forecast that Telus Digital will post 0.32 EPS for the current year.

Institutional Investors Weigh In On Telus Digital

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Aquatic Capital Management LLC bought a new stake in Telus Digital in the fourth quarter worth about $37,000. Two Sigma Securities LLC bought a new stake in Telus Digital in the fourth quarter worth about $42,000. Bayesian Capital Management LP bought a new position in Telus Digital in the 4th quarter valued at $45,000. Dynamic Technology Lab Private Ltd bought a new position in Telus Digital in the 1st quarter valued at $58,000. Finally, PDT Partners LLC bought a new position in Telus Digital in the 4th quarter valued at $61,000. Hedge funds and other 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.