Telus Shares Soar 1.24% on $70B Investment Plan

Telus (TU) shares surged 1.24% today, marking the second consecutive day of gains, with a total increase of 2.12% over the past two days. The stock price reached its highest level since October 2024, with an intraday gain of 1.54%.

The strategy of buying TU shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 5-year CAGR of 5.98%. While the strategy captured some of the upside in the subsequent week, the returns were relatively modest compared to holding the shares for the entire 5-year period. This suggests that waiting for recent highs before buying may lead to some missed opportunities, as the stock often continued to rise in the longer term. However, the strategy provided some stability and reduced risk, making it suitable for investors seeking regular income with lower volatility.

Telus has announced significant investment plans, including a $70 billion commitment to enhance its network infrastructure, connectivity, and sustainability. Additionally, the company is investing over $15 billion in British Columbia over the next five years to expand and enhance its network infrastructure and operations. These investments are expected to drive long-term growth and improve the company's competitive position in the market.

Institutional investors have been actively adjusting their holdings in Telus. Tidal Investments LLC significantly boosted its position in Telus shares, while other firms like Cetera Investment Advisers and Maryland State Retirement & Pension System have also made adjustments to their holdings. These changes in institutional holdings can influence market sentiment and stock price movements.

Several analysts have issued ratings on Telus shares. Canaccord Genuity Group increased its price target for Telus, while other analysts have issued hold ratings. The consensus rating on Telus is currently “Hold” with a price target of $21.50. Analyst opinions can provide valuable insights into the company's future performance and potential stock price movements.

Telus has announced an increase in its quarterly dividend, which is set to be paid on July 2nd, representing an annualized yield of 7.45%. This dividend increase is likely to attract income-focused investors and provide additional support for the stock price.