Knighthead Capital Management LLC Acquires Shares of 445,695 Telephone and Data Systems, Inc. $TDS

Key Points

• Knighthead Capital Management initiated a position of 445,695 Telephone and Data Systems shares valued at approximately $18.8 million, making TDS its third-largest holding and representing about 0.39% of the company.
• Institutional ownership remains high at 80%, with several major funds—including Carronade Capital, Geode Capital and Rubric Capital—also increasing their stakes.
• Analysts maintain a consensus “Hold” rating with a $53.33 price target. TDS shares opened at $34.33, while the company reported better-than-expected quarterly EPS of $1.11 and continues to pay a $0.04 quarterly dividend.

Knighthead Capital Management LLC bought a new position in Telephone and Data Systems, Inc. (NYSE:TDS - Free Report) in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund bought 445,695 shares of the Wireless communications provider's stock, valued at approximately $18,764,000. Telephone and Data Systems comprises approximately 1.2% of Knighthead Capital Management LLC's holdings, making the stock its 3rd largest holding. Knighthead Capital Management LLC owned approximately 0.39% of Telephone and Data Systems as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Dimensional Fund Advisors LP raised its holdings in Telephone and Data Systems by 1.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 6,482,147 shares of the Wireless communications provider's stock worth $272,898,000 after acquiring an additional 90,097 shares during the last quarter. Carronade Capital Management LP boosted its stake in Telephone and Data Systems by 10.0% during the 1st quarter. Carronade Capital Management LP now owns 4,623,934 shares of the Wireless communications provider's stock valued at $194,668,000 after purchasing an additional 420,340 shares during the last quarter. State Street Corp boosted its stake in Telephone and Data Systems by 1.5% during the 4th quarter. State Street Corp now owns 4,049,385 shares of the Wireless communications provider's stock valued at $166,025,000 after purchasing an additional 58,439 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Telephone and Data Systems by 2.8% in the 4th quarter. Geode Capital Management LLC now owns 2,415,553 shares of the Wireless communications provider's stock worth $99,053,000 after purchasing an additional 66,814 shares in the last quarter. Finally, Rubric Capital Management LP increased its holdings in shares of Telephone and Data Systems by 15.6% in the 4th quarter. Rubric Capital Management LP now owns 1,850,000 shares of the Wireless communications provider's stock worth $75,850,000 after purchasing an additional 250,000 shares in the last quarter. Institutional investors own 80.00% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the company. Weiss Ratings cut Telephone and Data Systems from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, June 18th. Wall Street Zen raised Telephone and Data Systems from a "sell" rating to a "hold" rating in a research report on Saturday, May 30th. Finally, Raymond James Financial downgraded Telephone and Data Systems from an "outperform" rating to a "market perform" rating in a 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. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $53.33.

Telephone and Data Systems Stock Down 0.1%

Shares of Telephone and Data Systems stock opened at $34.33 on Monday. Telephone and Data Systems, Inc. has a twelve month low of $33.01 and a twelve month high of $49.12. 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 company's 50 day moving average is $37.70 and its 200 day moving average is $42.00. The company has a market cap of $3.91 billion, a price-to-earnings ratio of 64.77 and a beta of 0.30.

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

Telephone and Data Systems Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 16th were given a dividend of $0.04 per share. This represents a $0.16 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date was Tuesday, June 16th. Telephone and Data Systems's dividend payout ratio is 30.19%.

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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