TELUS (NYSE:TU) Reaches New 12-Month Low Following Weak Earnings

Key Points

• TELUS shares fell to a new 52-week low of $9.22 after the company reported quarterly EPS of $0.12, below analysts’ $0.14 consensus estimate.
• TELUS announced a quarterly dividend of $0.4184, equivalent to $1.67 annually and an approximately 18% yield; however, its payout ratio stood at a high 275%.
• Analyst sentiment remains mixed, with the stock carrying an overall “Hold” rating and an average price target of $15.67, while institutional investors own 49.4% of the shares.

TELUS Corporation (NYSE:TU - Get Free Report) TSE: T shares hit a new 52-week low on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $9.22 and last traded at $9.4040, with a volume of 4692888 shares changing hands. The stock had previously closed at $10.77.

The Wireless communications provider reported $0.12 EPS for the quarter, missing analysts' consensus estimates of $0.14 by ($0.02). TELUS had a net margin of 4.54% and a return on equity of 8.29%.

TELUS Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Wednesday, June 10th were paid a $0.4184 dividend. This represents a $1.67 dividend on an annualized basis and a yield of 18.0%. The ex-dividend date of this dividend was Wednesday, June 10th. TELUS's payout ratio is presently 275.00%.

Wall Street Analyst Weigh In

A number of research firms have recently commented on TU. Morgan Stanley lowered TELUS to an "underweight" rating in a research report on Tuesday, July 21st. TD Cowen upgraded TELUS from a "hold" rating to a "buy" rating in a research report on Tuesday, April 28th. Weiss Ratings reissued a "sell (d+)" rating on shares of TELUS in a research note on Friday, July 17th. Scotiabank downgraded shares of TELUS from an "outperform" rating to a "sector perform" rating in a report on Friday, April 10th. Finally, Raymond James Financial assumed coverage on shares of TELUS in a research note on Wednesday, July 15th. They issued a "market perform" rating on the stock. Five equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $15.67.

Institutional Investors Weigh In On TELUS

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of TELUS by 1.5% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 779,692 shares of the Wireless communications provider's stock worth $11,181,000 after buying an additional 11,900 shares during the last quarter. Cetera Investment Advisers increased its position in shares of TELUS by 1.9% in the second quarter. Cetera Investment Advisers now owns 46,099 shares of the Wireless communications provider's stock valued at $739,000 after acquiring an additional 841 shares during the last quarter. Legal & General Group Plc raised its holdings in TELUS by 159.5% during the second quarter. Legal & General Group Plc now owns 37,274 shares of the Wireless communications provider's stock worth $597,000 after acquiring an additional 22,912 shares in the last quarter. EverSource Wealth Advisors LLC boosted its position in TELUS by 67.7% during the second quarter. EverSource Wealth Advisors LLC now owns 8,698 shares of the Wireless communications provider's stock valued at $140,000 after purchasing an additional 3,510 shares during the last quarter. Finally, Marshall Wace LLP acquired a new position in TELUS during the second quarter valued at approximately $3,617,000. 49.40% of the stock is owned by institutional investors.

TELUS Stock Performance

The company has a quick ratio of 0.63, a current ratio of 0.67 and a debt-to-equity ratio of 1.59. The stock has a 50 day simple moving average of $11.25 and a two-hundred day simple moving average of $12.48. The stock has a market capitalization of $14.65 billion, a P/E ratio of 21.10, a P/E/G ratio of 8.64 and a beta of 0.63.

About TELUS

TELUS Corporation NYSE: TU is a Canadian telecommunications and technology company headquartered in Vancouver, British Columbia. It delivers a broad portfolio of consumer and business communications services across Canada, including mobile wireless, fixed-line voice, broadband internet, and television. TELUS also provides a range of enterprise services such as cloud and IT solutions, managed network services, cybersecurity and Internet of Things (IoT) offerings for business customers.

Beyond core connectivity, TELUS has expanded into health and digital services.

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