TELUS Digital (NYSE:TIXT) Shares Gap Up - Still a Buy?

TELUS Digital (NYSE:TIXT - Get Free Report) shares gapped up prior to trading on Thursday . The stock had previously closed at $2.96, but opened at $3.56. TELUS Digital shares last traded at $3.56, with a volume of 2,792,361 shares changing hands.

Wall Street Analysts Forecast Growth

TIXT has been the topic of a number of research reports. Barclays dropped their target price on TELUS Digital from $5.00 to $3.00 and set an "equal weight" rating on the stock in a report on Friday, April 25th. TD Securities upped their target price on TELUS Digital from $3.75 to $4.00 and gave the company a "hold" rating in a report on Friday, February 14th. Scotiabank lowered their price target on TELUS Digital from $5.00 to $3.00 and set a "sector perform" rating for the company in a research note on Tuesday, April 29th. National Bank Financial raised TELUS Digital from a "sector perform" rating to an "outperform" rating in a research note on Friday, May 9th. Finally, BMO Capital Markets lowered their price target on TELUS Digital from $4.50 to $3.00 and set a "market perform" rating for the company in a research note on Monday, May 12th. Two equities research analysts have rated the stock with a sell rating, twelve have issued a hold rating, two have given a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, TELUS Digital currently has a consensus rating of "Hold" and an average target price of $4.07.

TELUS Digital Stock Up 24.0%

The stock has a market cap of $1.01 billion, a P/E ratio of -10.49, a PEG ratio of 4.71 and a beta of 0.80. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 0.72. The business has a 50-day simple moving average of $2.67 and a 200-day simple moving average of $3.17.

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

Institutional Investors Weigh In On TELUS Digital

A number of large investors have recently added to or reduced their stakes in TIXT. Aquatic Capital Management LLC acquired a new position in shares of TELUS Digital during the fourth quarter worth approximately $37,000. Two Sigma Securities LLC acquired a new position in shares of TELUS Digital during the fourth quarter worth approximately $42,000. Bayesian Capital Management LP acquired a new position in shares of TELUS Digital during the fourth quarter worth approximately $45,000. Dynamic Technology Lab Private Ltd acquired a new position in shares of TELUS Digital during the first quarter worth approximately $58,000. Finally, PDT Partners LLC acquired a new position in shares of TELUS Digital during the fourth quarter worth approximately $61,000. 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.