Carronade Capital Management LP Acquires 420,340 Shares of Telephone and Data Systems, Inc. $TDS

Key Points

• Carronade Capital Management increased its Telephone and Data Systems stake by 10% in the first quarter, acquiring 420,340 shares and bringing its holdings to 4.62 million shares, or approximately 4.06% of TDS.
• TDS reported quarterly earnings of $1.11 per share, significantly exceeding the consensus estimate of a $0.87 loss per share. Revenue rose 6.5% year over year to $309.45 million, slightly below expectations.
• The stock opened at $34.33, near its 52-week low, while analysts maintained a consensus “Hold” rating with an average price target of $53.33. TDS also declared a quarterly dividend of $0.04 per share, representing a 0.5% annualized yield.

Carronade Capital Management LP boosted its holdings in Telephone and Data Systems, Inc. (NYSE:TDS - Free Report) by 10.0% during the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 4,623,934 shares of the Wireless communications provider's stock after acquiring an additional 420,340 shares during the period. Telephone and Data Systems comprises about 2.5% of Carronade Capital Management LP's investment portfolio, making the stock its 4th biggest holding. Carronade Capital Management LP owned about 4.06% of Telephone and Data Systems worth $194,668,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors also recently bought and sold shares of TDS. Salomon & Ludwin LLC grew its holdings in shares of Telephone and Data Systems by 51.3% during the fourth quarter. Salomon & Ludwin LLC now owns 681 shares of the Wireless communications provider's stock valued at $28,000 after purchasing an additional 231 shares during the last quarter. JPL Wealth Management LLC bought a new stake in shares of Telephone and Data Systems in the 3rd quarter worth approximately $33,000. Caitong International Asset Management Co. Ltd boosted its position 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 purchasing an additional 1,084 shares during the period. EverSource Wealth Advisors LLC boosted its position in Telephone and Data Systems by 191.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,311 shares of the Wireless communications provider's stock valued at $47,000 after purchasing an additional 861 shares during the period. Finally, Ameliora Wealth Management Ltd. bought a new position in Telephone and Data Systems during the 1st quarter worth $90,000. 80.00% of the stock is currently owned by institutional investors and hedge funds.

Telephone and Data Systems Stock Performance

Shares of TDS opened at $34.33 on Monday. The firm has a 50-day moving average price of $37.70 and a 200 day moving average price of $42.00. The company has a quick ratio of 3.42, a current ratio of 3.43 and a debt-to-equity ratio of 0.16. The firm has a market capitalization of $3.91 billion, a PE ratio of 64.77 and a beta of 0.30. Telephone and Data Systems, Inc. has a 52-week low of $33.01 and a 52-week high of $49.12.

Telephone and Data Systems (NYSE:TDS - Get Free Report) last announced its earnings results on Friday, May 8th. The Wireless communications provider reported $1.11 EPS for the quarter, topping the consensus estimate of ($0.87) by $1.98. Telephone and Data Systems had a return on equity of 5.54% and a net margin of 6.15%.The firm had revenue of $309.45 million for the quarter, compared to analysts' expectations of $313.27 million. During the same quarter in the previous year, the company earned ($0.09) earnings per share. The firm's quarterly revenue was up 6.5% compared to the same quarter last year. On average, sell-side analysts anticipate that Telephone and Data Systems, Inc. will post 0.94 earnings per share for the current fiscal year.

Telephone and Data Systems Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th were paid a $0.04 dividend. The ex-dividend date of this dividend was Tuesday, June 16th. This represents a $0.16 annualized dividend and a dividend yield of 0.5%. Telephone and Data Systems's payout ratio is currently 30.19%.

Analyst Ratings Changes

TDS has been the topic of several analyst reports. Wall Street Zen raised Telephone and Data Systems from a "sell" rating to a "hold" rating in a research report on Saturday, May 30th. Weiss Ratings downgraded shares of Telephone and Data Systems from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, June 18th. Finally, Raymond James Financial lowered shares of Telephone and Data Systems from an "outperform" rating to a "market perform" rating in a research report on Monday, May 11th. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, Telephone and Data Systems presently has an average rating of "Hold" and a consensus price target of $53.33.

Telephone and Data Systems 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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