TELUS (NYSE:TU) Lowered to Sell at Zacks Investment Research

Zacks Investment Research cut shares of TELUS (NYSE:TU) (TSE:T) from a hold rating to a sell rating in a research report report published on Tuesday, Zacks.com reports. The firm currently has $24.00 price target on the Wireless communications provider’s stock.

According to Zacks, “TELUS has expanded 5G network to Quesnel as part of its C$13 billion investment in British Columbia through 2024. It expects to continue benefiting from strong customer additions, thanks to the adoption of superior connected experiences. The accelerated broadband expansion program is expected to extend its PureFibre and 5G coverage. The company plans to generate subscriber growth in its key growth segments, including wireless, high-speed Internet and TELUS TV. However, its efforts to offset capital expenditure for upgrading the network infrastructure by raising fees have reduced demand for its legacy voice services. A debt-laden balance sheet is denting its profitability. TELUS is selling its financial business to increase liquidity and reduce debt. Stiff competition from regional carriers poses another concern.”

Several other research analysts have also recently issued reports on TU. TD Securities dropped their target price on shares of TELUS from C$33.00 to C$32.00 and set a buy rating on the stock in a report on Tuesday, November 9th. Bank of America lowered shares of TELUS from a buy rating to an underperform rating and decreased their price target for the company from $38.00 to $35.00 in a research report on Friday, January 7th. National Bank Financial increased their price target on shares of TELUS from C$33.00 to C$34.00 and gave the company an outperform rating in a research report on Monday, November 8th. CIBC increased their price target on shares of TELUS from C$30.00 to C$31.00 and gave the company an outperform rating in a research report on Monday, November 8th. Finally, Scotiabank increased their price target on shares of TELUS from C$34.00 to C$36.00 and gave the company an outperform rating in a research report on Monday, November 8th. Two equities research analysts have rated the stock with a sell rating, two have issued a hold rating and eight have given a buy rating to the stock. Based on data from MarketBeat, TELUS presently has a consensus rating of Buy and a consensus target price of $30.67.

Shares of TELUS stock opened at $23.76 on Tuesday. The company has a debt-to-equity ratio of 1.15, a current ratio of 0.80 and a quick ratio of 0.75. TELUS has a 1 year low of $19.74 and a 1 year high of $23.95. The firm’s 50-day moving average is $23.21 and its two-hundred day moving average is $22.77. The stock has a market cap of $32.34 billion, a price-to-earnings ratio of 32.11, a PEG ratio of 2.70 and a beta of 0.69.

TELUS (NYSE:TU) (TSE:T) last issued its earnings results on Friday, November 5th. The Wireless communications provider reported $0.23 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.23. TELUS had a net margin of 7.74% and a return on equity of 9.29%. The company had revenue of $4.25 billion for the quarter, compared to analysts’ expectations of $4.29 billion. During the same period in the prior year, the business earned $0.21 EPS. The firm’s quarterly revenue was up 6.8% on a year-over-year basis. On average, equities analysts expect that TELUS will post 0.86 earnings per share for the current year.

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, January 4th. Investors of record on Friday, December 10th were given a $0.2627 dividend. This is a positive change from TELUS’s previous quarterly dividend of $0.25. This represents a $1.05 annualized dividend and a dividend yield of 4.42%. The ex-dividend date of this dividend was Thursday, December 9th. TELUS’s dividend payout ratio (DPR) is presently 137.84%.

A number of institutional investors and hedge funds have recently bought and sold shares of TU. Franklin Resources Inc. raised its position in TELUS by 38.6% during the 2nd quarter. Franklin Resources Inc. now owns 12,941,255 shares of the Wireless communications provider’s stock worth $290,128,000 after buying an additional 3,601,041 shares during the last quarter. Alliancebernstein L.P. raised its position in TELUS by 683.7% during the 3rd quarter. Alliancebernstein L.P. now owns 3,510,372 shares of the Wireless communications provider’s stock worth $77,088,000 after buying an additional 3,062,436 shares during the last quarter. Bank of Nova Scotia raised its position in TELUS by 16.1% during the 2nd quarter. Bank of Nova Scotia now owns 20,470,793 shares of the Wireless communications provider’s stock worth $459,036,000 after buying an additional 2,833,585 shares during the last quarter. Caisse DE Depot ET Placement DU Quebec purchased a new position in TELUS during the 2nd quarter worth approximately $40,410,000. Finally, Invesco Ltd. grew its stake in shares of TELUS by 27.8% during the 2nd quarter. Invesco Ltd. now owns 7,524,138 shares of the Wireless communications provider’s stock worth $168,766,000 after purchasing an additional 1,636,071 shares during the period. 47.19% of the stock is owned by institutional investors.

TELUS Company Profile

TELUS Corp. is a telecommunications company. The company specializes in telecommunication services and products primarily for wireless and wireline voice and data. It operates through the following segments: Wireless and Wireline. The Wireless segment refers to the data and voice products for mobile technologies.

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