Oaktree Capital Management LP Takes Position in Telephone and Data Systems, Inc. $TDS

Key Points

• Oaktree Capital Management LP bought 3,688,386 shares of Telephone and Data Systems (TDS) worth about $144.7 million in Q3, making TDS roughly 1.1% of Oaktree’s portfolio and its 8th largest holding; Oaktree now owns about 3.21% of TDS.
• TDS beat quarterly estimates with $0.32 EPS vs. $0.09 expected and revenue of $330.7M (up 12% YoY), but the company still has a negative net margin and negative trailing P/E; analysts are mixed with a consensus "Moderate Buy" and $53.33 target, and the company announced a $0.04 quarterly dividend (0.4% yield).

Oaktree Capital Management LP purchased a new position in Telephone and Data Systems, Inc. (NYSE:TDS - Free Report) during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 3,688,386 shares of the Wireless communications provider's stock, valued at approximately $144,732,000. Telephone and Data Systems comprises approximately 1.1% of Oaktree Capital Management LP's portfolio, making the stock its 8th largest position. Oaktree Capital Management LP owned 3.21% of Telephone and Data Systems as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also recently added to or reduced their stakes in the company. Croban lifted its holdings in Telephone and Data Systems by 0.7% in the 3rd quarter. Croban now owns 37,088 shares of the Wireless communications provider's stock valued at $1,455,000 after purchasing an additional 263 shares in the last quarter. Bessemer Group Inc. grew its holdings in shares of Telephone and Data Systems by 65.6% during the third quarter. Bessemer Group Inc. now owns 699 shares of the Wireless communications provider's stock worth $28,000 after buying an additional 277 shares in the last quarter. Truist Financial Corp raised its position in shares of Telephone and Data Systems by 0.9% in the third quarter. Truist Financial Corp now owns 36,829 shares of the Wireless communications provider's stock valued at $1,445,000 after buying an additional 316 shares during the last quarter. Nisa Investment Advisors LLC lifted its stake in shares of Telephone and Data Systems by 6.7% in the third quarter. Nisa Investment Advisors LLC now owns 5,663 shares of the Wireless communications provider's stock worth $222,000 after buying an additional 356 shares in the last quarter. Finally, Arizona State Retirement System lifted its stake in shares of Telephone and Data Systems by 1.4% in the third quarter. Arizona State Retirement System now owns 30,137 shares of the Wireless communications provider's stock worth $1,183,000 after buying an additional 414 shares in the last quarter. 80.00% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on TDS. Weiss Ratings upgraded shares of Telephone and Data Systems from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Tuesday, February 24th. Citigroup raised their target price on shares of Telephone and Data Systems from $51.00 to $56.00 and gave the stock a "buy" rating in a research note on Monday, February 23rd. Wall Street Zen cut Telephone and Data Systems from a "hold" rating to a "sell" rating in a report on Sunday, March 1st. Finally, Zacks Research lowered Telephone and Data Systems from a "strong-buy" rating to a "hold" rating in a research report on Thursday, January 1st. Three research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $53.33.

Telephone and Data Systems Trading Down 0.2%

Shares of TDS stock traded down $0.11 on Friday, hitting $43.62. The stock had a trading volume of 32,220 shares, compared to its average volume of 930,807. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.10 and a quick ratio of 2.09. The firm has a market capitalization of $5.02 billion, a P/E ratio of -66.84 and a beta of 0.34. Telephone and Data Systems, Inc. has a 1 year low of $31.07 and a 1 year high of $47.79. The company's 50 day moving average price is $44.45 and its 200-day moving average price is $40.87.

Telephone and Data Systems (NYSE:TDS - Get Free Report) last announced its earnings results on Friday, February 20th. The Wireless communications provider reported $0.32 EPS for the quarter, beating analysts' consensus estimates of $0.09 by $0.23. The company had revenue of $330.71 million during the quarter, compared to analysts' expectations of $319.28 million. Telephone and Data Systems had a positive return on equity of 2.25% and a negative net margin of 0.21%.Telephone and Data Systems's revenue for the quarter was up 12.0% on a year-over-year basis. During the same period last year, the business posted ($0.10) EPS. Analysts anticipate that Telephone and Data Systems, Inc. will post -0.31 earnings per share for the current year.

Telephone and Data Systems Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Monday, March 16th will be paid a dividend of $0.04 per share. This represents a $0.16 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend is Monday, March 16th. Telephone and Data Systems's dividend payout ratio is presently -24.62%.

About Telephone and Data Systems

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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