Whittier Trust Co. of Nevada Inc. has reduced its stake in Chunghwa Telecom Co., Ltd. (NYSE: CHT) by 3.2% during the first quarter of 2024. The investment firm disclosed that it now holds 7,183 shares of the telecommunications provider after selling 241 shares. The value of Whittier Trust’s holdings in Chunghwa Telecom stood at approximately $282,000 at the end of the quarter, according to a filing with the Securities & Exchange Commission.
Several other institutional investors have also made notable adjustments to their positions in Chunghwa Telecom. Northern Trust Corp increased its stake by an impressive 420.8% during the fourth quarter, acquiring an additional 546,436 shares. This brought its total holdings to 676,302 shares, valued at approximately $25.5 million. Similarly, Schroder Investment Management Group boosted its stake by 2.3%, now owning 650,358 shares worth around $24.7 million.
Dimensional Fund Advisors LP also increased its stake by 0.8% in the fourth quarter, bringing its total to 424,763 shares, valued at approximately $16 million. Rhumbline Advisers added 8,859 shares to its holdings in the first quarter, raising its total to 264,373 shares, worth about $10.4 million. American Century Companies Inc. raised its holdings by 15.3%, now owning 255,122 shares valued at $9.6 million. Collectively, institutional investors own 2.11% of Chunghwa Telecom’s stock.
Market Performance and Analyst Ratings
Chunghwa Telecom’s stock opened at $44.43 on Friday, with a 50-day moving average of $44.68 and a 200-day moving average of $40.95. The stock has fluctuated between a 52-week low of $36.29 and a 52-week high of $47.03. The company’s market capitalization is approximately $34.46 billion, with a price-to-earnings ratio of 29.82 and a beta of 0.25. Chunghwa Telecom also maintains a low debt-to-equity ratio of 0.06, a quick ratio of 1.46, and a current ratio of 1.63.
In a recent shift in market sentiment, Wall Street Zen downgraded Chunghwa Telecom’s rating from “buy” to “hold” on April 14, 2024. This indicates a cautious outlook among analysts regarding the company’s near-term performance.
Financial Results and Dividend Announcement
Chunghwa Telecom reported its quarterly earnings on May 8, 2024, announcing earnings per share of $0.38, aligning with the consensus estimate. The company generated revenues of $1.85 billion, significantly lower than analysts’ expectations of $56.11 billion. Despite this discrepancy, Chunghwa Telecom reported a net margin of 16.29% and a return on equity of 9.63%. Analysts forecast that Chunghwa Telecom will achieve an earnings per share of $1.44 for the current fiscal year.
In a positive development for shareholders, Chunghwa Telecom recently declared an annual dividend of $1.6695, set to be paid on August 8, 2024. Shareholders of record on July 3, 2024, will be eligible for this dividend. This announcement reflects a boost from the previous annual dividend of $1.47, resulting in a dividend yield of 2.9% and a dividend payout ratio of 87.25%.
Chunghwa Telecom Co., Ltd. provides telecommunication services both in Taiwan and internationally. Its operations cover various segments, including Consumer Business, Enterprise Business, and International Business, offering a wide range of services such as fixed-line and mobile telephone services, broadband plans, and data services. The company continues to play a vital role in the telecommunications landscape, adapting to changing market conditions and investor sentiment.
