Telus Digital (NYSE:TIXT) Shares Gap Up – Here’s Why

Telus Digital (NYSE:TIXT)’s share price gapped up before the market opened on Tuesday . The stock had previously closed at $3.88, but opened at $4.47. Telus Digital shares last traded at $4.48, with a volume of 10,434,876 shares trading hands.

Analyst Upgrades and Downgrades

Several research firms have recently commented on TIXT. CIBC dropped their price objective on shares of Telus Digital from $4.50 to $3.40 and set a “neutral” rating on the stock in a report on Friday, June 13th. National Bankshares downgraded shares of Telus Digital from an “outperform” rating to a “sector perform” rating and upped their price objective for the company from $3.50 to $4.00 in a report on Monday, July 21st. Wall Street Zen downgraded shares of Telus Digital from a “buy” rating to a “hold” rating in a report on Sunday, July 20th. BMO Capital Markets dropped their price objective on shares of Telus Digital from $4.50 to $3.00 and set a “market perform” rating on the stock in a report on Monday, May 12th. Finally, Morgan Stanley dropped their price objective on shares of Telus Digital from $3.49 to $3.40 and set an “equal weight” rating on the stock in a report on Monday, August 4th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $3.69.

Telus Digital Price Performance

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 50-day simple moving average is $3.82 and its two-hundred day simple moving average is $3.17. The company has a market capitalization of $1.24 billion, a price-to-earnings ratio of -3.21 and a beta of 0.91.

Telus Digital (NYSE:TIXT) last posted its quarterly earnings data on Friday, August 1st. The company reported $0.06 earnings per share for the quarter, topping analysts’ consensus estimates of $0.05 by $0.01. The company had revenue of $711.33 million during the quarter, compared to analysts’ expectations of $660.87 million. Telus Digital had a negative net margin of 14.09% and a positive return on equity of 1.99%. Telus Digital has set its FY 2025 guidance at 0.320-0.320 EPS. Equities research analysts predict that Telus Digital will post 0.32 earnings per share for the current year.

Hedge Funds Weigh In On Telus Digital

A number of large investors have recently added to or reduced their stakes in TIXT. Aquatic Capital Management LLC acquired a new position in Telus Digital during the fourth quarter worth $37,000. BNP Paribas Financial Markets acquired a new stake in shares of Telus Digital in the fourth quarter valued at about $101,000. Bank of America Corp DE raised its position in shares of Telus Digital by 14.3% in the fourth quarter. Bank of America Corp DE now owns 419,723 shares of the company’s stock valued at $1,645,000 after buying an additional 52,561 shares during the last quarter. Bayesian Capital Management LP acquired a new stake in shares of Telus Digital in the fourth quarter valued at about $45,000. Finally, Balyasny Asset Management L.P. purchased a new stake in shares of Telus Digital in the fourth quarter valued at about $122,000. 59.55% of the stock is currently owned by institutional investors and hedge funds.

About Telus Digital

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.