SK Telecom (NYSE:SKM) Downgraded by Zacks Research to “Strong Sell”

Zacks Research cut shares of SK Telecom (NYSE:SKM) from a strong-buy rating to a strong sell rating in a research note released on Thursday morning,Zacks.com reports.

A number of other brokerages have also issued reports on SKM. Weiss Ratings upgraded shares of SK Telecom from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, August 13th. HSBC raised SK Telecom from a “reduce” rating to a “hold” rating in a research note on Thursday, May 7th. Wall Street Zen upgraded shares of SK Telecom from a “hold” rating to a “buy” rating in a research report on Saturday, July 4th. Finally, JPMorgan Chase & Co. raised shares of SK Telecom from a “neutral” rating to an “overweight” rating in a research note on Thursday, July 16th. One equities research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Reduce”.

SK Telecom Stock Performance

NYSE:SKM opened at $39.35 on Thursday. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.18 and a quick ratio of 1.15. The firm has a market cap of $15.10 billion, a price-to-earnings ratio of 31.48 and a beta of 0.64. The firm’s fifty day moving average price is $34.30 and its 200 day moving average price is $34.41. SK Telecom has a 1-year low of $19.66 and a 1-year high of $47.18.

SK Telecom (NYSE:SKM) last announced its quarterly earnings data on Thursday, August 6th. The Wireless communications provider reported $0.81 EPS for the quarter, topping analysts’ consensus estimates of $0.59 by $0.22. SK Telecom had a net margin of 4.23% and a return on equity of 5.59%. The company had revenue of $2.81 billion during the quarter, compared to the consensus estimate of $2.96 billion. On average, sell-side analysts expect that SK Telecom will post 2.21 EPS for the current year.

Hedge Funds Weigh In On SK Telecom

Several hedge funds have recently added to or reduced their stakes in the business. Corient Private Wealth LP lifted its stake in SK Telecom by 5.0% in the 2nd quarter. Corient Private Wealth LP now owns 91,710 shares of the Wireless communications provider’s stock valued at $2,949,000 after buying an additional 4,358 shares in the last quarter. HB Wealth Management LLC increased its position in SK Telecom by 44.4% during the second quarter. HB Wealth Management LLC now owns 17,427 shares of the Wireless communications provider’s stock worth $560,000 after buying an additional 5,358 shares in the last quarter. Syon Capital LLC increased its position in SK Telecom by 18.7% during the second quarter. Syon Capital LLC now owns 12,660 shares of the Wireless communications provider’s stock worth $407,000 after buying an additional 1,996 shares in the last quarter. TD Waterhouse Canada Inc. raised its holdings in shares of SK Telecom by 5,390.4% in the second quarter. TD Waterhouse Canada Inc. now owns 33,821 shares of the Wireless communications provider’s stock worth $1,078,000 after acquiring an additional 33,205 shares during the last quarter. Finally, Greenspring Advisors LLC raised its holdings in shares of SK Telecom by 9.0% in the second quarter. Greenspring Advisors LLC now owns 11,369 shares of the Wireless communications provider’s stock worth $366,000 after acquiring an additional 935 shares during the last quarter.

Trending Headlines about SK Telecom

Here are the key news stories impacting SK Telecom this week:

• Positive Sentiment: AI data-center spin-off attracts ?3.08 trillion: SK Telecom is creating SK Horizon, a dedicated AI data-center infrastructure company, and plans to raise approximately ?3.08 trillion through a partial sale and capital injection backed by KKR and IMM. The transaction provides funding and external validation for SKM’s AI growth strategy while allowing the new unit to pursue focused investment. SK Telecom to Raise ?3.08 Trillion via Partial Sale and Capital Injection into New Data Center Unit SK Horizon
• Positive Sentiment: Infrastructure strategy gains investor focus: Coverage describes SK Horizon as a potential new AI growth engine and highlights the roughly $2.2 billion data-center deal. Separating the infrastructure business may improve decision-making, attract specialist capital and clarify the value of SK Telecom’s data-center operations. SK Telecom’s SK Horizon Spinoff: A New AI Growth Engine for SKM?
• Positive Sentiment: Cybersecurity AI partnership: SK Telecom is working with Upstage and AhnLab on an AI model for cybersecurity, supporting its broader effort to build AI-related products and services beyond traditional wireless communications. SK Telecom teams up with Upstage, AhnLab on AI model for cybersecurity
• Neutral Sentiment: Independent directors to receive treasury shares: SK Telecom plans to grant treasury shares to independent directors as bonus compensation. The move may align directors with shareholders, although investors could scrutinize the size and terms of the awards as part of governance and capital-allocation discussions. SK Telecom to Grant Treasury Shares to Independent Directors as Bonus Compensation
• Neutral Sentiment: Analyst stance remains cautious: SKM has received a consensus “Hold” rating, suggesting analysts see a balanced risk-reward profile while the company executes its AI and data-center transformation. SK Telecom Receives Consensus Rating of Hold

SK Telecom Company Profile

SK Telecom Co, Ltd. (NYSE:SKM) is South Korea’s largest wireless carrier, offering a comprehensive range of mobile telecommunications services. The company operates 5G, 4G LTE and IoT networks, providing voice, data and messaging solutions to consumers and businesses. Beyond traditional wireless services, SK Telecom delivers fixed-line broadband, digital content platforms, cloud computing and cybersecurity offerings designed to support enterprise digital transformation and the growing demand for high-speed connectivity.

Established in 1984 as Korea Mobile Telecommunications Services, SK Telecom pioneered cellular service commercialization in South Korea and has continually expanded into new technology areas.