Telus Digital (NYSE:TIXT) Shares Gap Up - What's Next?

Key Points

• Telus Digital shares gapped up significantly, opening at $4.47 after closing at $3.88, with a trading volume of over 10 million shares.
• Multiple analysts have downgraded Telus Digital's ratings and price targets, with an average target of $3.69 and a consensus rating of "Hold."
• The company recently reported earnings of $0.06 per share, exceeding expectations, and set FY 2025 guidance at $0.32 EPS.

Telus Digital (NYSE:TIXT - Get Free Report) shares gapped up prior to trading on Tuesday . The stock had previously closed at $3.88, but opened at $4.47. Telus Digital shares last traded at $4.48, with a volume of 10,434,876 shares.

Analysts Set New Price Targets

A number of research firms have recently issued reports on TIXT. CIBC lowered Telus Digital from a "neutral" rating to a "tender" rating and increased their target price for the company from $3.40 to $4.50 in a report on Wednesday. Stifel Canada downgraded Telus Digital from a "strong-buy" rating to a "hold" rating in a report on Tuesday. Stifel Nicolaus lowered Telus Digital from a "buy" rating to a "hold" rating and boosted their price target for the company from $4.00 to $4.50 in a research note on Wednesday. Morgan Stanley reduced their target price on Telus Digital from $3.49 to $3.40 and set an "equal weight" rating on the stock in a report on Monday, August 4th. Finally, Wall Street Zen downgraded Telus Digital from a "buy" rating to a "hold" rating in a report on Sunday, July 20th. Nine research analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $3.93.

Telus Digital Stock Up 0.3%

The firm has a 50-day moving average of $3.87 and a 200 day moving average of $3.20. 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 capitalization of $1.24 billion, a price-to-earnings ratio of -3.23 and a beta of 0.91.

Telus Digital (NYSE:TIXT - Get Free Report) last issued its quarterly earnings results on Friday, August 1st. The company reported $0.06 EPS for the quarter, beating the consensus estimate of $0.05 by $0.01. Telus Digital had a positive return on equity of 1.99% and a negative net margin of 14.09%.The firm had revenue of $711.33 million during the quarter, compared to analysts' expectations of $660.87 million. Telus Digital has set its FY 2025 guidance at 0.320-0.320 EPS. As a group, sell-side analysts forecast that Telus Digital will post 0.32 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Telus Digital

Large investors have recently made changes to their positions in the company. Scoggin Management LP bought a new stake in shares of Telus Digital in the second quarter valued at approximately $2,011,000. Moore Capital Management LP acquired a new position in shares of Telus Digital during the second quarter worth $508,000. LMR Partners LLP acquired a new position in shares of Telus Digital during the second quarter worth $1,089,000. BNP Paribas Financial Markets increased its holdings in shares of Telus Digital by 141.2% during the second quarter. BNP Paribas Financial Markets now owns 73,778 shares of the company's stock worth $268,000 after buying an additional 43,184 shares in the last quarter. Finally, Jane Street Group LLC increased its holdings in Telus Digital by 2,799.1% in the second quarter. Jane Street Group LLC now owns 329,371 shares of the company's stock valued at $1,196,000 after purchasing an additional 318,010 shares during the period. Institutional investors 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.