TELUS (NYSE:TU) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded TELUS from “hold” to “sell,” while the broader analyst consensus remains “hold,” with five buys, six holds and three sells and an average price target of $15.67.
• TELUS shares fell 11.3% to $9.55, near their 52-week low of $9.22. The company also missed quarterly expectations, reporting $0.12 in earnings per share versus $0.14 expected and revenue of $3.47 billion versus $3.55 billion estimated.
• Management is prioritizing deleveraging, targeting a debt-to-EBITDA ratio of 3.0 times or lower by the end of 2028, while resetting its quarterly dividend to $0.1875 per share—an annualized yield of about 7.8% but a setback for income-focused investors.

TELUS (NYSE:TU - Get Free Report) TSE: T was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

Several other equities analysts have also commented on TU. Canadian Imperial Bank of Commerce lowered TELUS to a "neutral" rating in a report on Friday. TD Cowen raised TELUS from a "hold" rating to a "buy" rating in a research report on Tuesday, April 28th. Weiss Ratings reiterated a "sell (d+)" rating on shares of TELUS in a report on Friday, July 17th. Scotiabank lowered TELUS from an "outperform" rating to a "sector perform" rating in a research report on Friday, April 10th. Finally, Raymond James Financial assumed coverage on TELUS in a report on Wednesday, July 15th. They issued a "market perform" rating for the company. Five analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $15.67.

TELUS Trading Down 11.3%

NYSE TU opened at $9.55 on Friday. TELUS has a 52 week low of $9.22 and a 52 week high of $16.72. The firm has a 50 day moving average of $11.19 and a two-hundred day moving average of $12.46. 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 market capitalization of $15.04 billion, a PE ratio of 21.72, a price-to-earnings-growth ratio of 8.36 and a beta of 0.63.

TELUS (NYSE:TU - Get Free Report) TSE: T last announced its quarterly earnings data on Friday, July 31st. The Wireless communications provider reported $0.12 earnings per share for the quarter, missing analysts' consensus estimates of $0.14 by ($0.02). The firm had revenue of $3.47 billion during the quarter, compared to analyst estimates of $3.55 billion. TELUS had a net margin of 4.54% and a return on equity of 8.29%. As a group, research analysts expect that TELUS will post 0.72 EPS for the current fiscal year.

Institutional Trading of TELUS

A number of hedge funds and other institutional investors have recently made changes to their positions in TU. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of TELUS by 1.5% in 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 valued at $11,181,000 after purchasing an additional 11,900 shares during the last quarter. Cetera Investment Advisers increased its position in TELUS by 1.9% during the second quarter. Cetera Investment Advisers now owns 46,099 shares of the Wireless communications provider's stock worth $739,000 after buying an additional 841 shares during the period. Legal & General Group Plc increased its position 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 buying an additional 22,912 shares during the period. EverSource Wealth Advisors LLC lifted its stake in TELUS by 67.7% in the second quarter. EverSource Wealth Advisors LLC now owns 8,698 shares of the Wireless communications provider's stock valued at $140,000 after buying an additional 3,510 shares during the last quarter. Finally, Marshall Wace LLP purchased a new stake in TELUS in the second quarter valued at approximately $3,617,000. Institutional investors and hedge funds own 49.40% of the company's stock.

TELUS News Roundup

Here are the key news stories impacting TELUS this week:

• Positive Sentiment: TELUS outlined a plan to reduce leverage to 3.0 times or lower by the end of 2028, while prioritizing balance-sheet strength and long-term growth. The company also plans to remove the discount on its dividend reinvestment plan beginning October 1, which should reduce shareholder dilution. TELUS Reports Second-Quarter 2026 Results
• Neutral Sentiment: The board declared a quarterly dividend of $0.1875 per share, payable October 1 to shareholders of record September 10. The payment represents an annualized yield of approximately 7.8%, although the dividend reset reduces the appeal for income-focused investors. TELUS Declares Quarterly Cash Dividend
• Negative Sentiment: TELUS reported second-quarter adjusted earnings of $0.12 per share, below estimates ranging from $0.14 to $0.16 and down from $0.16 a year earlier. The company also missed revenue expectations, reinforcing concerns about operating performance and helping drive selling pressure. TELUS Lags Q2 Earnings and Revenue Estimates
• Negative Sentiment: The dividend reset is a near-term setback for shareholders and signals that management is prioritizing debt reduction over maintaining the previous payout trajectory. TELUS reported a 4.54% net margin and 8.29% return on equity, highlighting limited profitability relative to its substantial leverage. TELUS Dividend Reset and Financial Results

TELUS Company Profile

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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