Telephone and Data Systems, Inc. (NYSE:TDS) Given Consensus Rating of "Hold" by Analysts

Key Points

• Analysts maintain a “Hold” consensus on Telephone and Data Systems, with three hold ratings and two buys. The average 12-month price target is $47.50, although JPMorgan and Citigroup recently lowered their targets to $48 and $47, respectively.
• TDS reported quarterly EPS of $2.24, far exceeding the $0.09 consensus estimate, while revenue rose 3.6% year over year to $309.28 million but fell short of expectations.
• The company declared a quarterly dividend of $0.04, equivalent to an annualized yield of 0.4%. Hedge funds and other institutional investors own approximately 80% of the shares.

Shares of Telephone and Data Systems, Inc. (NYSE:TDS - Get Free Report) have been assigned an average rating of "Hold" from the five research firms that are presently covering the firm, MarketBeat reports. Three investment analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $47.50.

Several equities research analysts have recently issued reports on TDS shares. Weiss Ratings raised Telephone and Data Systems from a "hold (c-)" rating to a "hold (c+)" rating in a research report on Tuesday, August 11th. JPMorgan Chase & Co. decreased their price objective on Telephone and Data Systems from $51.00 to $48.00 and set an "overweight" rating on the stock in a research note on Wednesday, August 19th. 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. Wall Street Zen raised Telephone and Data Systems from a "sell" rating to a "hold" rating in a research note on Saturday, May 30th. Finally, Zacks Research downgraded Telephone and Data Systems from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 9th.

Telephone and Data Systems Stock Performance

Shares of TDS opened at $36.75 on Tuesday. The firm has a market capitalization of $4.23 billion, a P/E ratio of 12.25 and a beta of 0.33. The stock has a 50 day moving average price of $34.96 and a two-hundred day moving average price of $39.27. Telephone and Data Systems has a 52 week low of $31.51 and a 52 week high of $49.12. The company has a debt-to-equity ratio of 0.15, a quick ratio of 3.81 and a current ratio of 3.82.

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

Telephone and Data Systems Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be issued a $0.04 dividend. This represents a $0.16 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date is Tuesday, September 15th. Telephone and Data Systems's dividend payout ratio is 5.33%.

Hedge Funds Weigh In On Telephone and Data Systems

A number of hedge funds have recently added to or reduced their stakes in the company. Tidal Investments LLC lifted its stake in Telephone and Data Systems by 310.4% during the 2nd quarter. Tidal Investments LLC now owns 20,060 shares of the Wireless communications provider's stock valued at $742,000 after acquiring an additional 15,172 shares during the period. Integrated Wealth Concepts LLC purchased a new position in shares of Telephone and Data Systems during the second quarter valued at about $511,000. NewEdge Advisors LLC lifted its position in Telephone and Data Systems by 9.0% during the second quarter. NewEdge Advisors LLC now owns 81,383 shares of the Wireless communications provider's stock valued at $3,012,000 after purchasing an additional 6,692 shares during the last quarter. Nykredit A S bought a new stake in shares of Telephone and Data Systems in the 2nd quarter valued at approximately $59,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in Telephone and Data Systems in the second quarter worth $2,098,000. 80.00% of the stock is currently owned by hedge funds and other institutional investors.

About Telephone and Data Systems

Telephone and Data Systems, Inc NYSE: TDS is a diversified telecommunications company that provides broadband, voice, video, wireless and managed communications services in the United States. Its operations primarily serve residential, business and government customers in smaller cities, suburban communities and rural markets.

TDS Telecom is the company's primary operating business. It delivers high-speed internet, fiber-based connectivity, traditional and digital voice services, video entertainment, hosted and managed services, and other communications solutions.

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