Telephone and Data Systems (NYSE:TDS) Hits New 12-Month Low - Should You Sell?

Key Points

• Telephone and Data Systems hit a new 52-week low, trading as low as $30.69, down from its prior close of $31.78.
• Analysts have an overall Hold rating and a consensus price target of $47.50; some lowered their targets, while JPMorgan and Citigroup maintained positive ratings.
• Quarterly EPS of $0.26 beat the $0.11 estimate, but revenue of $306.69 million fell short of expectations and declined 0.6% year over year. The company’s annualized dividend is $0.16 per share, a 0.5% yield.

Telephone and Data Systems, Inc. (NYSE:TDS - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Thursday. The company traded as low as $30.69 and last traded at $30.7640, with a volume of 977,441 shares trading hands. The stock had previously closed at $31.78.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on TDS shares. Zacks Research cut shares of Telephone and Data Systems from a "strong-buy" rating to a "hold" rating in a report on Wednesday, September 9th. JPMorgan Chase & Co. dropped their price objective on shares of Telephone and Data Systems from $51.00 to $48.00 and set an "overweight" rating on the stock in a report on Wednesday, August 19th. Citigroup cut their price objective on shares of Telephone and Data Systems from $50.00 to $47.00 and set a "buy" rating on the stock in a research report on Thursday, August 13th. Finally, Weiss Ratings upgraded Telephone and Data Systems from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday. Two analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, Telephone and Data Systems currently has an average rating of "Hold" and a consensus target price of $47.50.

Telephone and Data Systems Trading Down 3.2%

The firm has a market cap of $3.54 billion, a price-to-earnings ratio of 7.52 and a beta of 0.36. The firm's 50-day moving average is $35.28 and its 200-day moving average is $39.18. The company has a current ratio of 4.01, a quick ratio of 4.00 and a debt-to-equity ratio of 0.16.

Telephone and Data Systems (NYSE:TDS - Get Free Report) last issued its quarterly earnings data on Friday, November 6th. The Wireless communications provider reported $0.26 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.11 by $0.15. The firm had revenue of $306.69 million during the quarter, compared to analysts' expectations of $309.14 million. Telephone and Data Systems had a net margin of 43.41% and a return on equity of 12.48%. The business's revenue was down .6% on a year-over-year basis. During the same period last year, the company earned $0.33 earnings per share. As a group, sell-side analysts anticipate that Telephone and Data Systems, Inc. will post -0.64 EPS for the current fiscal year.

Telephone and Data Systems Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were paid a dividend of $0.04 per share. The ex-dividend date was Tuesday, September 15th. This represents a $0.16 dividend on an annualized basis and a yield of 0.5%. Telephone and Data Systems's payout ratio is 3.91%.

Institutional Trading of Telephone and Data Systems

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TDS. Bank of New York Mellon Corp purchased a new position in shares of Telephone and Data Systems during the second quarter valued at approximately $31,096,000. Oaktree Capital Management LP grew its stake in shares of Telephone and Data Systems by 16.4% in the 1st quarter. Oaktree Capital Management LP now owns 4,292,243 shares of the Wireless communications provider's stock worth $180,703,000 after acquiring an additional 603,857 shares in the last quarter. Rokos Capital Management LLP bought a new stake in shares of Telephone and Data Systems in the 1st quarter worth $21,040,000. Knighthead Capital Management LLC bought a new stake in shares of Telephone and Data Systems in the 1st quarter worth $18,764,000. Finally, Carronade Capital Management LP raised its holdings in shares of Telephone and Data Systems by 10.0% in the first quarter. Carronade Capital Management LP now owns 4,623,934 shares of the Wireless communications provider's stock valued at $194,668,000 after purchasing an additional 420,340 shares during the last quarter. 80.00% of the stock is owned by institutional investors.

Telephone and Data Systems Company Profile

Telephone and Data Systems, Inc. (TDS) is a U.S. telecommunications company founded in 1969. Its TDS Telecom business provides broadband, video and voice services to residential and business customers, using fiber and other wired networks as well as fixed wireless in some areas. TDS Telecom serves communities across multiple U.S. states, including smaller and rural markets. Its offerings include high-speed internet access, television service and business communications solutions. TDS has also operated wireless telecommunications businesses during its history.

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