Telecom Argentina (NYSE:TEO) Stock Overview: Up 4.5% - Should You Consider Buying?

Telecom Argentina S.A. (NYSE:TEO) saw a notable increase in its stock price, trading up 4.5% during mid-day trading on Tuesday. The stock reached a peak at $10.90 and was last noted at $10.96, with a total of 44,782 shares exchanging hands during this period. This volume represents a significant decline of 79% compared to the average session volume of 213,008 shares, after it previously closed at $10.49.

Wall Street analysts have been actively discussing Telecom Argentina and the outlook for its shares. JPMorgan Chase & Co. recently upgraded Telecom Argentina from a "neutral" to an "overweight" rating, lifting their price target from $10.00 to $13.00 in a research report dated February 25. Meanwhile, Scotiabank adjusted their price objective from $6.10 to $6.20, assigning the company a "sector underperform" rating as of March 13.

Recent Stock Performance Metrics

When assessing Telecom Argentina’s stock performance, its 50-day simple moving average stands at $11.66, while the two-hundred day average is $11.08. The company boasts a market capitalization of $4.60 billion, but does carry a P/E ratio of -59.36 and a beta of 0.99. Its financial indicators show a debt-to-equity ratio of 0.31. Additionally, there are current ratio and quick ratio values of 0.40 and 0.37, respectively.

Telecom Argentina released its quarterly earnings report on February 28, revealing earnings of $0.17 per share (EPS) for the quarter. This figure surpassed the consensus estimate of ($0.47) by $0.64, while the reported revenue was $1.29 billion, exceeding analyst estimates of $1.19 billion. The company's return on equity has been negative at -1.26%, with a net margin also in the red at -1.91%. Analysts predict that Telecom Argentina will post earnings of 1.28 EPS for the current year.

Changes in Institutional Ownership

Several hedge funds have made significant alterations to their holdings in Telecom Argentina recently. For example, GAMMA Investing LLC increased its position by 113.3% in the fourth quarter, now holding 3,917 shares valued at $49,000. Mariner LLC also upped its stake by 8.1%, accumulating a total of 32,792 shares worth $413,000 by adding 2,467 shares during the same period. Other notable changes include Advisors Preferred LLC acquiring a new stake valued at around $75,000 and XTX Topco Ltd increasing its holdings by 64.7%. Atlas Capital Advisors Inc. also purchased a new stake valued at about $106,000 in the same timeframe.

Company Background

Telecom Argentina S.A. is engaged in providing a wide range of telecommunications services through its subsidiaries. Their offerings include mobile telecommunications, which cover voice communications, high-speed mobile internet, content download, streaming services, and the sale of mobile devices such as handsets and smart watches.

Investment Considerations

As you contemplate whether to invest $1,000 in Telecom Argentina now, it’s worth noting that top analysts are currently favoring other stocks over Telecom Argentina. MarketBeat highlights five stocks that leading analysts recommend for purchase, suggesting that Telecom Argentina is positioned with a "Reduce" rating among these experts.

Telecom, Investment, Stocks