Third Point LLC Has $261.88 Million Stock Holdings in Telephone and Data Systems, Inc. $TDS

Key Points

• Third Point LLC increased its stake in Telephone and Data Systems, Inc. by 12.7%, owning approximately 6,760,000 shares worth $261,882,000, making it the firm's sixth largest position.
• Telephone and Data Systems reported a loss of ($0.05) earnings per share for the latest quarter, missing estimates, but had overall revenue of $1.19 billion, slightly above expectations.
• The company announced a quarterly dividend of $0.04 per share, with a yield of 0.4%, scheduled for payment on September 30th.

Third Point LLC increased its position in shares of Telephone and Data Systems, Inc. (NYSE:TDS - Free Report) by 12.7% during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 6,760,000 shares of the Wireless communications provider's stock after acquiring an additional 760,000 shares during the period. Telephone and Data Systems comprises about 4.0% of Third Point LLC's portfolio, making the stock its 6th biggest position. Third Point LLC owned about 5.93% of Telephone and Data Systems worth $261,882,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of TDS. Nuveen LLC bought a new stake in Telephone and Data Systems during the 1st quarter worth $43,429,000. Carronade Capital Management LP lifted its holdings in Telephone and Data Systems by 48.2% during the 1st quarter. Carronade Capital Management LP now owns 2,730,517 shares of the Wireless communications provider's stock worth $105,780,000 after buying an additional 888,108 shares during the period. Silver Point Capital L.P. lifted its holdings in Telephone and Data Systems by 47.2% during the 4th quarter. Silver Point Capital L.P. now owns 1,840,000 shares of the Wireless communications provider's stock worth $62,762,000 after buying an additional 590,000 shares during the period. 140 Summer Partners LP acquired a new position in Telephone and Data Systems during the 1st quarter worth about $21,216,000. Finally, Hawk Ridge Capital Management LP acquired a new position in Telephone and Data Systems during the 1st quarter worth about $19,141,000. Institutional investors own 80.00% of the company's stock.

Insider Transactions at Telephone and Data Systems

In related news, CAO Anita J. Kroll sold 29,047 shares of the company's stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $39.02, for a total transaction of $1,133,413.94. Following the transaction, the chief accounting officer directly owned 19,892 shares of the company's stock, valued at approximately $776,185.84. This represents a 59.35% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Vicki L. Villacrez sold 73,878 shares of the company's stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $38.88, for a total value of $2,872,376.64. Following the transaction, the chief financial officer directly owned 81,035 shares in the company, valued at approximately $3,150,640.80. This trade represents a 47.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 276,650 shares of company stock valued at $10,690,789 in the last 90 days. Corporate insiders own 14.97% of the company's stock.

Telephone and Data Systems Trading Down 0.3%

Shares of NYSE:TDS traded down $0.12 during midday trading on Friday, reaching $39.26. The company's stock had a trading volume of 262,145 shares, compared to its average volume of 1,064,396. The firm has a market capitalization of $4.51 billion, a price-to-earnings ratio of -40.46 and a beta of 0.48. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.65 and a current ratio of 1.78. The firm has a 50 day moving average price of $38.74 and a two-hundred day moving average price of $36.50. Telephone and Data Systems, Inc. has a fifty-two week low of $22.51 and a fifty-two week high of $42.74.

Telephone and Data Systems (NYSE:TDS - Get Free Report) last announced its quarterly earnings data on Monday, August 11th. The Wireless communications provider reported ($0.05) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.04). The business had revenue of $1.19 billion during the quarter, compared to analyst estimates of $1.17 billion. Telephone and Data Systems had a negative net margin of 0.85% and a positive return on equity of 0.92%. The firm's revenue for the quarter was down 5.7% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.13) earnings per share. As a group, analysts forecast that Telephone and Data Systems, Inc. will post -0.31 earnings per share for the current year.

Telephone and Data Systems Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 15th will be paid a dividend of $0.04 per share. This represents a $0.16 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend is Monday, September 15th. Telephone and Data Systems's dividend payout ratio is -16.49%.

Wall Street Analyst Weigh In

TDS has been the topic of several recent research reports. JPMorgan Chase & Co. lifted their target price on Telephone and Data Systems from $53.00 to $54.00 and gave the stock an "overweight" rating in a report on Tuesday, August 12th. Wall Street Zen raised Telephone and Data Systems from a "sell" rating to a "hold" rating in a report on Sunday, August 17th. Zacks Research raised Telephone and Data Systems from a "strong sell" rating to a "hold" rating in a report on Wednesday, August 13th. Finally, Raymond James Financial lifted their target price on Telephone and Data Systems from $49.00 to $50.00 and gave the stock an "outperform" rating in a report on Tuesday, August 12th. Two equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $52.00.

Telephone and Data Systems Company Profile

Telephone and Data Systems, Inc, a telecommunications company, provides communications services in the United States. It operates through two segments: UScellular and TDS Telecom. The company offers wireless solutions to consumers, and business and government customers, including a suite of connected Internet of things (IoT) solutions, and software applications for monitor and control, business automation/operations, communication, fleet and asset management, smart water solutions, private cellular networks and custom, and end-to-end IoT solutions; wireless priority services and quality priority and preemption options; smartphones and other handsets, tablets, wearables, mobile hotspots, fixed wireless home internet, and IoT devices; and accessories, such as cases, screen protectors, chargers, and memory cards, as well as consumer electronics, including audio, home automation and networking products.