Telephone and Data Systems (NYSE:TDS) Cut to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Telephone and Data Systems (TDS) from “hold” to “sell.” Other analyst views are mixed, with MarketBeat reporting a consensus “hold” rating and a $46 price target.
• TDS shares opened at $31.44 and traded near their 12-month low of $30.45; the 50-day and 200-day moving averages were $35.05 and $39.05, respectively.
• The company beat quarterly EPS expectations, reporting $0.26 versus the $0.11 consensus, but revenue of $306.69 million fell short of estimates and declined 0.6% year over year.

Telephone and Data Systems (NYSE:TDS - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

TDS has been the subject of several other research reports. Zacks Research lowered shares of Telephone and Data Systems from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 9th. Citigroup lowered their target price on shares of Telephone and Data Systems from $47.00 to $44.00 and set a "buy" rating on the stock in a research report on Friday. Weiss Ratings upgraded Telephone and Data Systems from a "hold (c)" rating to a "hold (c+)" rating in a report on Monday. Finally, JPMorgan Chase & Co. cut their target price on Telephone and Data Systems from $51.00 to $48.00 and set an "overweight" rating on the stock in a report on Wednesday, August 19th. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, Telephone and Data Systems has a consensus rating of "Hold" and a consensus target price of $46.00.

Telephone and Data Systems Price Performance

Shares of TDS opened at $31.44 on Friday. The firm has a market cap of $3.62 billion, a PE ratio of 7.82 and a beta of 0.36. The firm's 50 day moving average price is $35.05 and its 200 day moving average price is $39.05. The company has a debt-to-equity ratio of 0.16, a quick ratio of 4.00 and a current ratio of 4.01. Telephone and Data Systems has a twelve month low of $30.45 and a twelve month high of $49.12.

Telephone and Data Systems (NYSE:TDS - Get Free Report) last posted its earnings results on Friday, November 6th. The Wireless communications provider reported $0.26 EPS for the quarter, topping the consensus estimate of $0.11 by $0.15. Telephone and Data Systems had a net margin of 43.41% and a return on equity of 12.48%. The company had revenue of $306.69 million during the quarter, compared to the consensus estimate of $309.14 million. During the same period in the previous year, the firm posted $0.33 earnings per share. The company's revenue for the quarter was down .6% compared to the same quarter last year. As a group, research analysts expect that Telephone and Data Systems will post -0.64 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of TDS. EverSource Wealth Advisors LLC boosted its holdings in Telephone and Data Systems by 29.2% during the first quarter. EverSource Wealth Advisors LLC now owns 1,085 shares of the Wireless communications provider's stock valued at $46,000 after acquiring an additional 245 shares during the period. TD Waterhouse Canada Inc. increased its stake in shares of Telephone and Data Systems by 446.9% in the second quarter. TD Waterhouse Canada Inc. now owns 1,340 shares of the Wireless communications provider's stock worth $50,000 after purchasing an additional 1,095 shares during the period. Nykredit A S bought a new position in shares of Telephone and Data Systems in the second quarter worth about $59,000. Fulcrum Asset Management LLP lifted its position in shares of Telephone and Data Systems by 2,367.5% during the 3rd quarter. Fulcrum Asset Management LLP now owns 1,974 shares of the Wireless communications provider's stock worth $67,000 after purchasing an additional 1,894 shares during the last quarter. Finally, Versant Capital Management Inc lifted its position in shares of Telephone and Data Systems by 16.3% during the 2nd quarter. Versant Capital Management Inc now owns 2,730 shares of the Wireless communications provider's stock worth $101,000 after purchasing an additional 383 shares during the last quarter. Institutional investors and hedge funds own 80.00% of the company's stock.

Telephone and Data Systems Company Profile

Telephone and Data Systems, Inc. (TDS) is a U.S. telecommunications company founded in 1969. Its TDS Telecom business provides broadband, video and voice services to residential and business customers, using fiber and other wired networks as well as fixed wireless in some areas. TDS Telecom serves communities across multiple U.S. states, including smaller and rural markets. Its offerings include high-speed internet access, television service and business communications solutions. TDS has also operated wireless telecommunications businesses during its history.

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