Zacks Research Downgrades Telephone and Data Systems (NYSE:TDS) to Hold

Key Points

• Zacks Research downgraded Telephone and Data Systems to “hold” from “strong buy.” The broader analyst consensus is also “hold,” with an average price target of $47.50.
• TDS shares opened at $37.49 and were down 1.1%, trading below their 200-day moving average of $39.64. The stock has a 12-month range of $31.51 to $49.12.
• The company reported a quarterly EPS beat of $2.24 versus the $0.09 consensus estimate, while revenue of $309.28 million fell short of expectations. Institutional investors own approximately 80% of the stock.

Telephone and Data Systems (NYSE:TDS - Get Free Report) was downgraded by stock analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Wednesday, Zacks reports.

Several other research analysts have also recently issued reports on TDS. Weiss Ratings raised shares of Telephone and Data Systems from a "hold (c-)" rating to a "hold (c+)" rating in a report on Tuesday, August 11th. Wall Street Zen upgraded shares of Telephone and Data Systems from a "sell" rating to a "hold" rating in a report on Saturday, May 30th. Citigroup reduced their price target on shares of Telephone and Data Systems from $50.00 to $47.00 and set a "buy" rating for the company in a research report on Thursday, August 13th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Telephone and Data Systems from $51.00 to $48.00 and set an "overweight" rating for the company in a report on Wednesday, August 19th. Two equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $47.50.

Telephone and Data Systems Trading Down 1.1%

NYSE TDS opened at $37.49 on Wednesday. Telephone and Data Systems has a 12 month low of $31.51 and a 12 month high of $49.12. The company has a current ratio of 3.82, a quick ratio of 3.81 and a debt-to-equity ratio of 0.15. The stock's fifty day moving average price is $34.66 and its 200-day moving average price is $39.64. The stock has a market cap of $4.32 billion, a P/E ratio of 12.50 and a beta of 0.33.

Telephone and Data Systems (NYSE:TDS - Get Free Report) last posted its quarterly earnings results on Friday, August 7th. The Wireless communications provider reported $2.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.09 by $2.15. Telephone and Data Systems had a return on equity of 11.97% and a net margin of 33.20%.The firm had revenue of $309.28 million during the quarter, compared to analyst estimates of $315.78 million. During the same quarter in the previous year, the firm earned ($0.05) EPS. Telephone and Data Systems's quarterly revenue was up 3.6% compared to the same quarter last year. As a group, equities analysts forecast that Telephone and Data Systems will post -0.24 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the stock. JPL Wealth Management LLC purchased a new stake in Telephone and Data Systems in the third quarter worth approximately $33,000. Caitong International Asset Management Co. Ltd raised its stake in Telephone and Data Systems by 2,779.5% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,123 shares of the Wireless communications provider's stock valued at $46,000 after buying an additional 1,084 shares during the last quarter. EverSource Wealth Advisors LLC raised its stake in Telephone and Data Systems by 29.2% during the 1st quarter. EverSource Wealth Advisors LLC now owns 1,085 shares of the Wireless communications provider's stock valued at $46,000 after buying an additional 245 shares during the last quarter. TD Waterhouse Canada Inc. lifted its holdings in shares of Telephone and Data Systems by 446.9% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 1,340 shares of the Wireless communications provider's stock valued at $50,000 after buying an additional 1,095 shares during the period. Finally, Nykredit A S purchased a new position in shares of Telephone and Data Systems in the 2nd quarter worth $59,000. 80.00% of the stock is owned by hedge funds and other institutional investors.

Telephone and Data Systems Company Profile

Telephone and Data Systems, Inc NYSE: TDS is a diversified telecommunications company headquartered in Chicago, Illinois. Through its subsidiaries, the company provides a broad array of communications services, including wireless voice and data, wireline broadband and voice, cable television, and managed IT and cloud solutions. Its two primary operating units—TDS Telecom and U.S. Cellular—serve residential, business and wholesale customers across the United States.

TDS Telecom focuses on delivering broadband internet, digital voice, video and data communications services in primarily rural and suburban markets.

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