Whittier Trust Co. of Nevada Inc. has reduced its stake in Chunghwa Telecom Co., Ltd. (NYSE: CHT) by 3.2% in the first quarter of 2024, as reported in its recent filing with the Securities and Exchange Commission. The firm now holds 7,183 shares of the telecommunications provider, following the sale of 241 shares during the quarter. The value of Whittier Trust’s investments in Chunghwa Telecom stood at approximately $282,000 at the end of the last quarter.
A number of other institutional investors have also adjusted their positions in Chunghwa Telecom recently. Notably, Northern Trust Corp significantly increased its holdings by 420.8% in the fourth quarter, acquiring an additional 546,436 shares to reach a total of 676,302 shares valued at $25.5 million. Similarly, Schroder Investment Management Group raised its stake by 2.3% during the same period, now owning 650,358 shares worth $24.7 million.
Dimensional Fund Advisors LP and Rhumbline Advisers also made notable adjustments. Dimensional Fund Advisors increased its stake by 0.8%, acquiring 3,416 shares to bring its total to 424,763 shares valued at $16 million. Meanwhile, Rhumbline Advisers boosted its holdings by 3.5% in the first quarter, now owning 264,373 shares worth $10.4 million. American Century Companies Inc. raised its stake by 15.3%, acquiring an additional 33,831 shares to reach a total of 255,122 shares valued at approximately $9.6 million. Overall, institutional investors now hold approximately 2.11% of Chunghwa Telecom’s stock.
Analysts Adjust Ratings Amid Market Trends
In a recent market update, Wall Street analysts have adjusted their outlook on Chunghwa Telecom. Wall Street Zen downgraded the stock from a “buy” rating to a “hold” rating on April 14, 2024. As of last Friday, Chunghwa Telecom’s stock opened at $44.43, with a 50-day moving average of $44.68 and a 200-day moving average of $40.95. The stock has fluctuated over the past year, recording a 52-week low of $36.29 and a high of $47.03.
Chunghwa Telecom boasts a market capitalization of $34.46 billion, a price-to-earnings ratio of 29.82, and a beta of 0.25. Financially, the company maintains a low debt-to-equity ratio of 0.06, a quick ratio of 1.46, and a current ratio of 1.63. The latest quarterly earnings results were released on May 8, 2024, where the company reported earnings per share of $0.38, aligning with consensus estimates. Revenue for the quarter reached $1.85 billion, markedly lower than analysts’ expectations of $56.11 billion. Chunghwa Telecom reported a net margin of 16.29% and a return on equity of 9.63%, with analysts forecasting an EPS of $1.44 for the current fiscal year.
Dividend Increase Announced
In an encouraging development for shareholders, Chunghwa Telecom has announced an increase in its annual dividend. The new dividend, amounting to $1.6695 per share, will be paid on August 8, 2024, to shareholders of record on July 3, 2024. This dividend represents a yield of 2.9%, a rise from the previous annual dividend of $1.47. The company’s current dividend payout ratio stands at 87.25%.
Chunghwa Telecom Co., Ltd., along with its subsidiaries, provides a wide range of telecommunication services both in Taiwan and internationally. The company operates through several segments, including Consumer Business, Enterprise Business, and International Business, offering services such as local and international fixed-line telephone services, mobile plans, broadband, and data services.
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