Vanguard Group Inc. Has $466.38 Million Stake in Telephone and Data Systems, Inc. $TDS

Key Points

• Vanguard Group trimmed its stake in Telephone and Data Systems by 1.1% to 11,375,121 shares, representing about 9.89% worth $466.38 million, and institutional investors now own roughly 80% of the company.
• Quarterly results beat estimates: TDS reported $0.32 EPS versus $0.09 expected and revenue of $330.71M (up 12% YoY), though it still showed a slight negative net margin and analysts project -$0.16 EPS for the fiscal year.
• Dividend and market view: TDS pays a $0.04 quarterly dividend (annualized $0.16, ~0.4% yield), trades near $45.35 with a 52-week range of $31.07–$47.79, and carries a consensus "Moderate Buy" target of $53.33.

Vanguard Group Inc. cut its stake in shares of Telephone and Data Systems, Inc. (NYSE:TDS - Free Report) by 1.1% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 11,375,121 shares of the Wireless communications provider's stock after selling 121,772 shares during the quarter. Vanguard Group Inc. owned approximately 9.89% of Telephone and Data Systems worth $466,380,000 as of its most recent SEC filing.

A number of other institutional investors have also recently made changes to their positions in the stock. Oaktree Capital Management LP bought a new position in shares of Telephone and Data Systems during the third quarter worth about $144,732,000. Rubric Capital Management LP bought a new stake in Telephone and Data Systems in the third quarter valued at approximately $62,784,000. Davidson Kempner Capital Management LP bought a new stake in Telephone and Data Systems in the third quarter valued at approximately $55,395,000. ThornTree Capital Partners LP acquired a new stake in Telephone and Data Systems during the 3rd quarter valued at approximately $20,864,000. Finally, Carronade Capital Management LP increased its position in Telephone and Data Systems by 8.5% during the 3rd quarter. Carronade Capital Management LP now owns 3,680,500 shares of the Wireless communications provider's stock valued at $144,423,000 after purchasing an additional 288,000 shares during the period. Institutional investors own 80.00% of the company's stock.

Telephone and Data Systems Stock Up 0.8%

TDS stock opened at $45.35 on Wednesday. The stock's 50 day simple moving average is $44.26 and its 200 day simple moving average is $42.23. The company has a market cap of $5.16 billion, a P/E ratio of -69.77 and a beta of 0.33. The company has a debt-to-equity ratio of 0.20, a quick ratio of 2.09 and a current ratio of 2.10. Telephone and Data Systems, Inc. has a fifty-two week low of $31.07 and a fifty-two week high of $47.79.

Telephone and Data Systems (NYSE:TDS - Get Free Report) last announced its quarterly 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 business had revenue of $330.71 million during the quarter, compared to analyst estimates of $319.28 million. Telephone and Data Systems had a negative net margin of 0.21% and a positive return on equity of 2.25%. Telephone and Data Systems's quarterly revenue was up 12.0% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.10) EPS. On average, research analysts expect that Telephone and Data Systems, Inc. will post -0.16 earnings per share for the current fiscal year.

Telephone and Data Systems Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Monday, March 16th were issued a $0.04 dividend. This represents a $0.16 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend was Monday, March 16th. Telephone and Data Systems's payout ratio is -24.62%.

Wall Street Analyst Weigh In

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

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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