Adversity is less terrifying than hope: Telefonica S.A. (TEF)

Telefonica S.A. (NYSE: TEF) stock fell -4.29% on Friday to $3.57 against a previous-day closing price of $3.73. With 2.06 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.38 million shares. During the session, the Telecom Services company that operates in wider Communication Services sector, reached to the highest price of $3.6300 whereas the lowest price it dropped to was $3.5400. The 52-week range on TEF shows that it touched its highest point at $5.23 and its lowest point at $3.73 during that stretch. It currently has a 1-year price target of $5.92. Beta for the stock currently stands at 0.51.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TEF was down-trending over the past week, with a drop of -7.51%, but this was down by -15.80% over a month. Three-month performance dropped to -27.29% while six-month performance fell -20.58%. The stock lost -19.10% in the past year, while it has lost -13.27% so far this year. A look at the trailing 12-month EPS for TEF yields 1.39 with Next year EPS estimates of 0.33. For the next quarter, that number is 1.53. This implies an EPS growth rate of 522.00% for this year and -78.10% for next year. EPS is expected to grow by 15.90% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 30.10%.

Float and Shares Shorts:

At present, 5.87 billion TEF shares are outstanding with a float of 5.24 billion shares on hand for trading. On Jun 14, 2022, short shares totaled 2.96 million, which was 0.05% higher than short shares on May 12, 2022. In addition to Mr. Jose María Alvarez-Pallete Lopez as the firm’s CEO & Exec. Chairman, Mr. Angel Vila Boix serves as its COO & Exec. Director.

Institutional Ownership:

Through their ownership of 1.22% of TEF’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 1.12% of TEF, in contrast to 0.11% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in TEF with 0.29% of the stake, Morgan Stanley & Co. Internationa holds 16,588,275 shares worth 16,588,275. A second-largest stockholder of TEF, Arrowstreet Capital LP, holds 8,062,862 shares, controlling over 0.14% of the firm’s shares. Parametric Portfolio Associates L is the third largest shareholder in TEF, holding 6,725,746 shares or 0.12% stake. With a 0.03% stake in TEF, the Defiance Next Gen Connectivity ET is the largest stakeholder. A total of 1,523,043 shares are owned by the mutual fund manager. The Pacer Fds. Tr. – Global Cash Cows, which owns about 0.02% of TEF stock, is the second-largest Mutual Fund holder. It holds 1,413,918 shares valued at 5.77 million. Fidelity Select Wireless Portfoli holds 0.01% of the stake in TEF, owning 680,149 shares worth 2.78 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TEF since 28 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 3 suggest SELL ratings. Of the remaining analysts, 13 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With TEF analysts setting a high price target of $6.50 and a low target of $3.55, the average target price over the next 12 months is $4.93. Based on these targets, TEF could surge 82.07% to reach the target high and fall by -0.56% to reach the target low. Reaching the average price target will result in a growth of 38.1% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. TEF will report FY 2022 earnings on 02/23/2023. Analysts have provided yearly estimates in a range of $0.67 being high and $0.21 being low. For TEF, this leads to a yearly average estimate of $0.38. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $0.14 and the low estimate is $0.14. The average estimate for the next quarter is thus $0.14.

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