Telephone and Data Systems, Inc. $TDS Stock Position Increased by Third Point LLC

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

Other hedge funds also recently added to or reduced their stakes in the company. Sumitomo Mitsui Trust Group Inc. boosted its stake in Telephone and Data Systems by 21.4% during the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 8,500 shares of the Wireless communications provider's stock valued at $329,000 after purchasing an additional 1,500 shares during the last quarter. Sequoia Financial Advisors LLC increased its holdings in Telephone and Data Systems by 8.0% in the 1st quarter. Sequoia Financial Advisors LLC now owns 6,544 shares of the Wireless communications provider's stock worth $254,000 after buying an additional 485 shares in the last quarter. Oppenheimer & Co. Inc. purchased a new position in Telephone and Data Systems in the 1st quarter worth about $215,000. Wealth Enhancement Advisory Services LLC purchased a new position in Telephone and Data Systems in the 4th quarter worth about $237,000. Finally, GAMMA Investing LLC lifted its stake in Telephone and Data Systems by 8.7% during the 1st quarter. GAMMA Investing LLC now owns 6,243 shares of the Wireless communications provider's stock valued at $242,000 after acquiring an additional 501 shares during the period. 80.00% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of analysts have recently commented on TDS shares. JPMorgan Chase & Co. lifted their price target on shares of Telephone and Data Systems from $53.00 to $54.00 and gave the stock an "overweight" rating in a research note on Tuesday, August 12th. Raymond James Financial lifted their target price on shares of Telephone and Data Systems from $49.00 to $50.00 and gave the stock an "outperform" rating in a research 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. Finally, Zacks Research raised Telephone and Data Systems from a "strong sell" rating to a "hold" rating in a report on Wednesday, August 13th. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $52.00.

Telephone and Data Systems Stock Performance

NYSE TDS traded up $0.15 on Wednesday, reaching $38.71. 598,326 shares of the stock were exchanged, compared to its average volume of 1,071,871. Telephone and Data Systems, Inc. has a one year low of $21.81 and a one year high of $42.74. The firm has a market capitalization of $4.45 billion, a PE ratio of -39.90 and a beta of 0.48. The company's 50-day simple moving average is $38.66 and its two-hundred day simple moving average is $36.48. The company has a current ratio of 1.78, a quick ratio of 1.65 and a debt-to-equity ratio of 0.85.

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

Telephone and Data Systems Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th will be given a $0.04 dividend. This represents a $0.16 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Monday, September 15th. Telephone and Data Systems's payout ratio is presently -16.49%.

Insiders Place Their Bets

In other news, Director Prudence E. Carlson sold 6,320 shares of the company's stock in a transaction dated Thursday, August 14th. The stock was sold at an average price of $38.05, for a total value of $240,476.00. Following the completion of the transaction, the director owned 315,457 shares of the company's stock, valued at $12,003,138.85. This represents a 1.96% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CAO Anita J. Kroll sold 29,047 shares of Telephone and Data Systems stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $39.02, for a total value of $1,133,413.94. Following the sale, the chief accounting officer directly owned 19,892 shares in the company, valued at $776,185.84. This trade represents a 59.35% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 276,650 shares of company stock valued at $10,690,789 over the last three months. Insiders own 14.48% of the company's stock.

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.