Telus Digital's (TIXT) Sell (D) Rating Reaffirmed at Weiss Ratings

Key Points

• Weiss Ratings has reaffirmed a "Sell (D)" rating for Telus Digital (TIXT), indicating ongoing concerns about the stock's performance.
• Multiple analysts have adjusted their forecasts for TIXT, with the target price ranging from $3.40 to $4.50, showcasing a mix of hold and downgrade ratings.
• Telus Digital reported Q2 earnings of $0.06 per share, which surpassed analysts' expectations, alongside revenue of $711.33 million, higher than projections of $660.87 million.

Telus Digital (NYSE:TIXT - Get Free Report)'s stock had its "sell (d)" rating restated by stock analysts at Weiss Ratings in a research report issued to clients and investors on Wednesday,Weiss Ratings reports.

A number of other equities analysts have also recently issued reports on TIXT. Morgan Stanley dropped their target price on Telus Digital from $3.49 to $3.40 and set an "equal weight" rating for the company in a report on Monday, August 4th. Stifel Canada cut Telus Digital from a "strong-buy" rating to a "hold" rating in a report on Tuesday, September 2nd. National Bankshares downgraded Telus Digital from a "sector perform" rating to a "tender" rating and boosted their target price for the stock from $4.00 to $4.50 in a report on Wednesday, September 3rd. Scotiabank boosted their target price on Telus Digital from $3.40 to $4.50 and gave the stock a "sector perform" rating in a report on Thursday, September 4th. Finally, CIBC downgraded Telus Digital from a "neutral" rating to a "tender" rating and boosted their target price for the stock from $3.40 to $4.50 in a report on Wednesday, September 3rd. Eight investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Telus Digital presently has a consensus rating of "Reduce" and a consensus price target of $3.93.

Telus Digital Price Performance

Shares of TIXT remained flat at $4.47 during mid-day trading on Wednesday. The stock had a trading volume of 266,996 shares, compared to its average volume of 753,285. Telus Digital has a fifty-two week low of $2.13 and a fifty-two week high of $4.60. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.85. The stock's fifty day moving average price is $4.16 and its 200-day moving average price is $3.44. The stock has a market cap of $1.24 billion, a P/E ratio of -3.22 and a beta of 0.94.

Telus Digital (NYSE:TIXT - Get Free Report) last issued its earnings results on Friday, August 1st. The company reported $0.06 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 business 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, equities analysts expect that Telus Digital will post 0.32 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. TD Asset Management Inc lifted its holdings in Telus Digital by 4.0% during the 1st quarter. TD Asset Management Inc now owns 260,719 shares of the company's stock worth $699,000 after buying an additional 9,992 shares in the last quarter. Gabelli Funds LLC acquired a new position in Telus Digital during the 2nd quarter worth $36,000. Bank of Nova Scotia lifted its holdings in Telus Digital by 4.1% during the 1st quarter. Bank of Nova Scotia now owns 257,784 shares of the company's stock worth $692,000 after buying an additional 10,053 shares in the last quarter. Aviso Financial Inc. lifted its holdings in Telus Digital by 25.2% during the 2nd quarter. Aviso Financial Inc. now owns 60,651 shares of the company's stock worth $220,000 after buying an additional 12,225 shares in the last quarter. Finally, PDT Partners LLC lifted its holdings in Telus Digital by 79.9% during the 1st quarter. PDT Partners LLC now owns 28,058 shares of the company's stock worth $75,000 after buying an additional 12,458 shares in the last quarter. Institutional investors and hedge funds 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.

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