Zacks Investment Research cut shares of Telefonica SA (NYSE:TEF) from a buy rating to a hold rating in a research note released on Wednesday morning.

According to Zacks, “Telefonica should benefit from the launch of video services in several Latin-American markets, widespread adoption of broadband and data services, pricing revision, network enhancement and strategic collaborations, continued focus on organic growth and portfolio optimization. Telefonica is also capitalizing on the opportunities in the digital world. However, the company continues to face stiff competition in the domestic and Latin-American markets. Notably, in Latin America, Telefonica competes with large global telecom operators like AT&T and America Movil. The fallout of the company’s IPO plans and downgradation by Moody's Investors Service was a major setback, apart from the company’s debt laden balance sheet. Over the past three months, shares of Telefonica declined 2.2% as against the industry's loss of 0.8%.”

Several other brokerages have also recently issued reports on TEF. ValuEngine raised shares of Telefonica SA from a buy rating to a strong-buy rating in a research note on Friday, July 7th. Berenberg Bank raised shares of Telefonica SA from a hold rating to a buy rating in a research note on Wednesday, September 27th. BidaskClub cut shares of Telefonica SA from a hold rating to a sell rating in a research note on Thursday, June 22nd. Citigroup Inc. reaffirmed a buy rating on shares of Telefonica SA in a research note on Tuesday, July 25th. Finally, J P Morgan Chase & Co cut shares of Telefonica SA from an overweight rating to a neutral rating in a research note on Tuesday, September 5th. Six equities research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. The stock currently has a consensus rating of Buy and an average target price of $11.00.

Telefonica SA (NYSE:TEF) traded down 0.19% during mid-day trading on Wednesday, hitting $10.38. 1,246,800 shares of the stock traded hands. The stock has a 50 day moving average price of $10.68 and a 200 day moving average price of $10.91. The firm has a market cap of $53.18 billion, a PE ratio of 17.47 and a beta of 1.31. Telefonica SA has a 12-month low of $8.15 and a 12-month high of $11.64.

Telefonica SA (NYSE:TEF) last announced its quarterly earnings data on Thursday, July 27th. The utilities provider reported $0.16 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.18 by ($0.02). The business had revenue of $14.24 billion during the quarter, compared to analyst estimates of $15.01 billion. Telefonica SA had a return on equity of 29.02% and a net margin of 5.18%. On average, analysts expect that Telefonica SA will post $0.89 earnings per share for the current fiscal year.

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Institutional investors have recently added to or reduced their stakes in the company. Eagle Ridge Investment Management purchased a new position in shares of Telefonica SA in the second quarter worth approximately $114,000. Sei Investments Co. increased its position in shares of Telefonica SA by 43.9% in the first quarter. Sei Investments Co. now owns 10,898 shares of the utilities provider’s stock worth $122,000 after acquiring an additional 3,327 shares in the last quarter. Advisor Group Inc. increased its position in shares of Telefonica SA by 3.1% in the second quarter. Advisor Group Inc. now owns 13,355 shares of the utilities provider’s stock worth $138,000 after acquiring an additional 406 shares in the last quarter. Raymond James Trust N.A. increased its position in shares of Telefonica SA by 31.9% in the second quarter. Raymond James Trust N.A. now owns 13,452 shares of the utilities provider’s stock worth $139,000 after acquiring an additional 3,252 shares in the last quarter. Finally, Cambridge Investment Research Advisors Inc. increased its position in shares of Telefonica SA by 0.9% in the second quarter. Cambridge Investment Research Advisors Inc. now owns 13,643 shares of the utilities provider’s stock worth $142,000 after acquiring an additional 118 shares in the last quarter. 0.93% of the stock is currently owned by institutional investors and hedge funds.

Telefonica SA Company Profile

Telefonica, SA is an integrated and diversified telecommunications group operating in Europe and Latin America. The Company’s services and products include Mobile business, Fixed-line telephony business and Digital services. Its segments include Telefonica Spain, Telefonica Brazil, Telefonica Germany, Telefonica United Kingdom and Telefonica Hispanoamerica (formed by the Company’s operators in Argentina, Chile, Peru, Colombia, Mexico, Venezuela and Central America, Ecuador and Uruguay).

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