TELUS (NYSE:TU) Downgraded to “Sell” Rating by Wall Street Zen

Wall Street Zen lowered shares of TELUS (NYSE:TU) (TSE:T) from a hold rating to a sell rating in a research note issued to investors on Saturday.

Other equities analysts have also recently issued research reports about the stock. Scotiabank cut shares of TELUS from an “outperform” rating to a “sector perform” rating in a research report on Friday, April 10th. Barclays set a $12.00 price objective on shares of TELUS and gave the stock an “equal weight” rating in a report on Thursday, July 16th. TD Securities raised TELUS from a “buy” rating to a “buy” rating in a research report on Tuesday, April 28th. Canaccord Genuity Group lowered TELUS from a “buy” rating to a “hold” rating in a research report on Thursday, April 9th. Finally, Raymond James Financial assumed coverage on TELUS in a research report on Wednesday, July 15th. They issued a “market perform” rating for the company. Five research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, TELUS has an average rating of “Hold” and a consensus target price of $15.67.

TELUS Stock Performance

NYSE:TU opened at $9.55 on Friday. 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 firm’s fifty day simple moving average is $11.19 and its 200 day simple moving average is $12.46. The stock has a market cap of $15.04 billion, a P/E ratio of -23.30, a price-to-earnings-growth ratio of 7.42 and a beta of 0.63. TELUS has a twelve month low of $9.22 and a twelve month high of $16.72.

TELUS (NYSE:TU) (TSE:T) last issued its quarterly earnings data on Friday, July 31st. The Wireless communications provider reported $0.12 EPS for the quarter, missing the consensus estimate of $0.16 by ($0.04). TELUS had a return on equity of 8.29% and a net margin of 4.54%.The company had revenue of $3.47 billion during the quarter, compared to the consensus estimate of $3.55 billion. As a group, research analysts predict that TELUS will post 0.72 EPS for the current year.

TELUS Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be paid a $0.1875 dividend. This represents a $0.75 dividend on an annualized basis and a dividend yield of 7.8%. The ex-dividend date of this dividend is Thursday, September 10th. TELUS’s dividend payout ratio is currently 275.00%.

Hedge Funds Weigh In On TELUS

Large investors have recently modified their holdings of the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in 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 valued at $11,181,000 after purchasing an additional 11,900 shares during the last quarter. Cetera Investment Advisers lifted its stake 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 worth $739,000 after buying an additional 841 shares in the last quarter. Legal & General Group Plc lifted its stake in shares of TELUS by 159.5% in 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 in the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of 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 buying an additional 3,510 shares during the last quarter. Finally, Marshall Wace LLP purchased a new stake in shares of TELUS during the second quarter valued at approximately $3,617,000. Hedge funds and other institutional investors own 49.40% of the company’s stock.

TELUS News Summary

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

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.