Telephone and Data Systems (NYSE:TDS) Shares Break Below Fifty Day Moving Average - Should You Sell?

Telephone and Data Systems, Inc. (NYSE:TDS - Get Free Report)'s share price passed below its fifty day moving average during trading on Wednesday. The stock has a fifty day moving average of $35.22 and traded as low as $33.55. Telephone and Data Systems shares last traded at $34.4910, with a volume of 1,717,319 shares changing hands.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on TDS. Citigroup dropped their price objective on shares of Telephone and Data Systems from $50.00 to $47.00 and set a "buy" rating for the company in a research note on Thursday, August 13th. Zacks Research downgraded shares of Telephone and Data Systems from a "strong-buy" rating to a "hold" rating in a report on Wednesday, September 9th. Weiss Ratings lowered shares of Telephone and Data Systems from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday, October 8th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Telephone and Data Systems from $51.00 to $48.00 and set an "overweight" rating on the stock in a research report on Wednesday, August 19th. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Telephone and Data Systems has an average rating of "Hold" and an average price target of $47.50.

Telephone and Data Systems Price Performance

The company has a debt-to-equity ratio of 0.15, a current ratio of 3.82 and a quick ratio of 3.81. The stock has a market capitalization of $3.97 billion, a P/E ratio of 11.50 and a beta of 0.32. The company's 50 day simple moving average is $35.22 and its two-hundred day simple moving average is $39.66.

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

Telephone and Data Systems Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were given 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 dividend payout ratio is 5.33%.

Institutional Investors Weigh In On Telephone and Data Systems

Hedge funds and other institutional investors have recently bought and sold shares of the business. EverSource Wealth Advisors LLC lifted its holdings in Telephone and Data Systems by 29.2% during the 1st quarter. EverSource Wealth Advisors LLC now owns 1,085 shares of the Wireless communications provider's stock worth $46,000 after buying an additional 245 shares in the last quarter. TD Waterhouse Canada Inc. boosted its position in Telephone and Data Systems by 446.9% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 1,340 shares of the Wireless communications provider's stock valued at $50,000 after buying an additional 1,095 shares during the last quarter. Nykredit A S acquired a new stake in shares of Telephone and Data Systems in the 2nd quarter valued at $59,000. Versant Capital Management Inc increased its stake in shares of Telephone and Data Systems by 16.3% in the 2nd quarter. Versant Capital Management Inc now owns 2,730 shares of the Wireless communications provider's stock valued at $101,000 after buying an additional 383 shares during the period. Finally, Parallel Advisors LLC increased its stake in shares of Telephone and Data Systems by 17.1% in the 1st quarter. Parallel Advisors LLC now owns 3,307 shares of the Wireless communications provider's stock valued at $139,000 after buying an additional 484 shares during the period. 80.00% of the stock is owned by institutional investors and hedge funds.

About Telephone and Data Systems

Telephone and Data Systems, Inc NYSE: TDS is a telecommunications holding company that provides broadband and communications services in communities across the United States. Its principal operating business is TDS Telecom, which serves residential, business and wholesale customers with internet access, fiber-optic and other broadband connections, voice services, video entertainment and related communications solutions.

TDS Telecom focuses on expanding high-speed broadband availability in rural and suburban markets.

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