Insider trading trends and institutional investments surrounding TELUS Corporation stock have gained traction as insiders demonstrate strong confidence in the company's future. Over the past year, multiple insiders have increased their holdings significantly, fueling optimism about the wireless communications provider's prospects.
Notably, Victor Dodig, one of the company's insiders, made headlines for purchasing CA$2.1 million worth of TELUS shares at approximately CA$21.38 per share. Given the current share price of CA$19.45, his investment at levels above the market price raises eyebrows, hinting at bullish expectations. It seems evident; insiders do not just buy stocks on whims. The fact they are net buyers—having paid CA$3.1 million for shares, compared to selling CA$2.2 million—speaks volumes about their sentiments.
Insiders' ownership now amounts to about CA$35 million, translating to 0.1% of TELUS, which is reasonable yet shy of remarkable. Nevertheless, this ownership level suggests at least some degree of alignment with investor interests. "It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in TELUS shares," stated one analyst.
Meanwhile, Geode Capital Management LLC, emerged as one of the institutional investors amplifying its stake, increasing its holdings of TELUS shares by 8.2% during the third quarter of the current fiscal year. After adding another 177,953 shares, they now hold over 2.3 million shares valued at about $40.2 million. Other forms of institutional interest since then have not gone unnoticed either.
Maryland State Retirement & Pension System grew its position by 13.4% during the second quarter, acquiring 10,141 shares, bringing their total to 85,648 shares worth $1.3 million, which signifies similar bullish attitudes. VAUGHAN & Co SECURITIES INC. similarly increased its holdings by 10.3%, Commonwealth Equity Services grew theirs by 5.6%, and Van ECK Associates Corp's position grew impressively by 128.5%—further indications of confidence among institutional investors.
With institutional investors collectively owning 49.40% of TELUS, it's evident their interests might protect the stock from volatile movements associated with retail traders. It’s interesting to analyze how institutional approaches could set the tone for the future as they tend to have more long-term perspectives, unlike the frequent shifting interests of retail investors.
On the performance end, TELUS posted impressive earnings results for the third quarter on November 8, reporting earnings per share of $0.28—surpassing analysts' expectations of $0.17 by $0.11. Compared to the previous year, where the firm reported $0.19 earnings per share, this marked progress only adds fuel to the fire. The company’s revenue of $5.10 billion also highlighted effective management and operational capabilities, climbing 1.8% year-on-year against analytical projections of just $3.69 billion.
The sentiment surrounding TELUS has also been reflected through analysts’ ratings, where the majority currently hold “Hold” ratings with retail interest split among sell and buy ratings. MarketBeat notes, “One equities research analyst has rated the stock with a sell rating, four have issued hold ratings and two have issued buy ratings to the stock.”
Further enhancing the allure of TELUS to investors, the corporation has recently announced plans to increase its quarterly dividend payment, which is set for distribution on January 2. Shareholders of record on December 11 will receive $0.297 per share, up from the prior quarterly dividend of $0.28. Given the current market yield at 8.75%, and considering previous payout histories, this move is expected to attract more long-term investors seeking solid returns on their investments.
The careful watch on dividend payout ratios—currently sitting at an astonishing 253.19%—is warranted as investors are encouraged to stay informed about potential warning signs within the company. Nonetheless, the recent buy actions from insiders combined with sustainable dividend strategies could reaffirm trust among stakeholders.
Though TELUS Corporation has encountered certain challenges, the commitment from insiders to invest more alongside significant institutional involvement hints at steady yet cautious optimism surrounding its expected growth, revenue generation, and overall market positioning.
