Why Telefonica (TEF) Stock Is Down This Afternoon

NEW YORK (TheStreet) -- Shares of Telefonica (TEF) are down -0.24% to $16.49 after it was reported that the Spanish firm is in talks to sell its stake in Telecom Italia (TI) in a move that could ease regulatory pressure in Brazil's wireless market, according to the Brazilian newspaper Folha de S.Paulo, Reuters reports.

Telefonica is negotiating a deal with investment funds to sell its stake in Telecom Italia, the paper said.

Telefonica is left with a nearly 15% direct stake in the Italian company after other investors voted to dismantle their controlling bloc.

Must Read: Warren Buffett's 25 Favorite Growth Stocks


TheStreet Ratings team rates TELEFONICA SA as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate TELEFONICA SA (TEF) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins."

If you liked this article you might like

Wall Street Overlooks Trump's North Korea Threats to Hit New Records

Stocks on Track for Records Even as Trump Goes After North Korea

T-Mobile, Sprint Deal Talk Lead Telecom Stocks to Post Big Gains