Telephone and Data Systems (NYSE:TDS) Shares Down 4.7% - Here's Why

Key Points

• TDS shares fell 4.7% to about $32.51 in light trading, with volume down 89% from the average daily level.
• Analyst sentiment remains mixed: Citigroup and JPMorgan lowered their price targets to $47 and $48, respectively, while the overall consensus is “Hold” with a $47.50 average target.
• The company reported quarterly EPS of $2.24, far above the $0.09 consensus estimate, while revenue of $309.28 million came in below expectations; TDS also maintained a $0.04 quarterly dividend, yielding about 0.5%.

Shares of Telephone and Data Systems, Inc. (NYSE:TDS - Get Free Report) traded down 4.7% on Friday. The stock traded as low as $33.31 and last traded at $32.5110. 116,400 shares traded hands during trading, a decline of 89% from the average daily volume of 1,105,711 shares. The stock had previously closed at $34.13.

Analyst Ratings Changes

TDS has been the topic of a number of recent research reports. Citigroup dropped their price target on shares of Telephone and Data Systems from $50.00 to $47.00 and set a "buy" rating on the stock in a research note on Thursday, August 13th. 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. Weiss Ratings upgraded Telephone and Data Systems from a "hold (c-)" rating to a "hold (c+)" rating in a research report on Tuesday, August 11th. Finally, JPMorgan Chase & Co. cut their price target on Telephone and Data Systems from $51.00 to $48.00 and set an "overweight" rating for the company in a report on Wednesday, August 19th. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and an average price target of $47.50.

Telephone and Data Systems Trading Down 3.0%

The firm has a fifty day simple moving average of $35.29 and a two-hundred day simple moving average of $38.51. The stock has a market cap of $3.81 billion, a PE ratio of 11.09 and a beta of 0.32. The company has a current ratio of 3.82, a quick ratio of 3.81 and a debt-to-equity ratio of 0.15.

Telephone and Data Systems (NYSE:TDS - Get Free Report) last released its quarterly earnings results on Friday, August 7th. The Wireless communications provider reported $2.24 EPS for the quarter, topping analysts' consensus estimates of $0.09 by $2.15. The business had revenue of $309.28 million during the quarter, compared to analysts' expectations of $315.78 million. Telephone and Data Systems had a net margin of 33.20% and a return on equity of 11.97%. The business's quarterly revenue was up 3.6% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.05) EPS. As a group, equities analysts expect that Telephone and Data Systems, Inc. will post -0.24 earnings per share 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. Shareholders of record on Tuesday, September 15th were given a dividend of $0.04 per share. The ex-dividend date of this dividend 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 presently 5.33%.

Institutional Investors Weigh In On Telephone and Data Systems

Several institutional investors and hedge funds have recently modified their holdings of the stock. EverSource Wealth Advisors LLC increased its stake in shares of Telephone and Data Systems by 29.2% during the first quarter. EverSource Wealth Advisors LLC now owns 1,085 shares of the Wireless communications provider's stock valued at $46,000 after purchasing an additional 245 shares in the last quarter. Caitong International Asset Management Co. Ltd boosted its position in shares of Telephone and Data Systems by 2,779.5% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,123 shares of the Wireless communications provider's stock worth $46,000 after purchasing an additional 1,084 shares in the last quarter. TD Waterhouse Canada Inc. grew its stake in shares of 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 worth $50,000 after buying an additional 1,095 shares during the last quarter. Nykredit A S purchased a new stake in shares of Telephone and Data Systems in the 2nd quarter worth approximately $59,000. Finally, Ameliora Wealth Management Ltd. bought a new position in Telephone and Data Systems during the 1st quarter valued at approximately $90,000. 80.00% of the stock is owned by hedge funds and other institutional investors.

About Telephone and Data Systems

Telephone and Data Systems, Inc NYSE: TDS is a telecommunications company founded in 1969 and headquartered in Chicago, Illinois. Through its operating businesses, the company provides connectivity and communications services to residential, business and institutional customers in communities across the United States.

TDS Telecom is the company's primary operating business and offers broadband internet, voice, video and related communications services. Its broadband network includes fiber-optic and other high-speed technologies, while its business services include managed networking, cloud-based solutions, hosted communications and other technology services for organizations.

Historically, TDS also owned UScellular, a wireless communications provider serving customers in portions of the United States.

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