JPMorgan Chase & Co. Cuts Telephone and Data Systems (NYSE:TDS) Price Target to $48.00

Key Points

• JPMorgan lowered Telephone and Data Systems’ price target from $51 to $48 while maintaining an “overweight” rating, implying approximately 37.77% upside from the reported share price of $34.84.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $47.50, despite mixed recent rating and target changes from other firms.
• TDS reported quarterly EPS of $2.24, significantly exceeding the $0.09 consensus estimate, while revenue of $309.28 million fell short of expectations; institutional investors own about 80% of the company.

Telephone and Data Systems (NYSE:TDS - Get Free Report) had its price objective dropped by research analysts at JPMorgan Chase & Co. from $51.00 to $48.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has an "overweight" rating on the Wireless communications provider's stock. JPMorgan Chase & Co.'s price target suggests a potential upside of 37.77% from the stock's current price.

Several other equities research analysts also recently weighed in on TDS. Citigroup cut their price objective on Telephone and Data Systems from $50.00 to $47.00 and set a "buy" rating on the stock in a report on Thursday, August 13th. Weiss Ratings raised Telephone and Data Systems from a "hold (c-)" rating to a "hold (c+)" rating in a report on Tuesday, August 11th. Zacks Research upgraded Telephone and Data Systems from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 11th. Raymond James Financial lowered Telephone and Data Systems from an "outperform" rating to a "market perform" rating in a research note on Monday, May 11th. Finally, Wall Street Zen upgraded Telephone and Data Systems from a "sell" rating to a "hold" rating in a report on Saturday, May 30th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, Telephone and Data Systems currently has a consensus rating of "Moderate Buy" and an average price target of $47.50.

Telephone and Data Systems Price Performance

Shares of TDS traded up $0.67 during midday trading on Wednesday, hitting $34.84. The company's stock had a trading volume of 336,774 shares, compared to its average volume of 1,020,800. The company has a quick ratio of 3.81, a current ratio of 3.82 and a debt-to-equity ratio of 0.15. The stock has a market capitalization of $4.01 billion, a price-to-earnings ratio of 11.60 and a beta of 0.32. Telephone and Data Systems has a one year low of $31.51 and a one year high of $49.12. The company's fifty day simple moving average is $35.79 and its two-hundred day simple moving average is $40.92.

Telephone and Data Systems (NYSE:TDS - Get Free Report) last posted its quarterly earnings results on Friday, August 7th. The Wireless communications provider reported $2.24 earnings per share for the quarter, beating analysts' consensus estimates of $0.09 by $2.15. The company had revenue of $309.28 million for the quarter, compared to the consensus estimate of $315.78 million. Telephone and Data Systems had a net margin of 33.20% and a return on equity of 11.97%. The firm's quarterly revenue was up 3.6% compared to the same quarter last year. During the same period last year, the company posted ($0.05) EPS. As a group, equities analysts expect that Telephone and Data Systems will post -0.24 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Rubric Capital Management LP purchased a new position in Telephone and Data Systems in the 3rd quarter worth about $62,784,000. Davidson Kempner Capital Management LP acquired a new stake in Telephone and Data Systems during the 3rd quarter worth about $55,395,000. Bank of New York Mellon Corp purchased a new stake in Telephone and Data Systems during the second quarter valued at about $31,096,000. Oaktree Capital Management LP lifted its stake in Telephone and Data Systems by 16.4% during the first quarter. Oaktree Capital Management LP now owns 4,292,243 shares of the Wireless communications provider's stock valued at $180,703,000 after buying an additional 603,857 shares in the last quarter. Finally, VR Advisory Services Ltd acquired a new position in shares of Telephone and Data Systems in the fourth quarter worth about $23,493,000. Institutional investors own 80.00% of the company's stock.

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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