Telephone and Data Systems (NYSE:TDS) Stock Falls 4.7% - What's Next?

Key Points

• Telephone and Data Systems shares fell 4.7% to about $32.47, with trading volume roughly 70% below the average daily level.
• Analyst sentiment is mixed: the consensus rating is Hold, with an average price target of $47.50; JPMorgan and Citigroup recently lowered their targets but maintained positive ratings.
• The company reported quarterly EPS of $2.24, well above the $0.09 consensus estimate, while revenue rose 3.6% year over year to $309.28 million. TDS also pays a $0.04 quarterly dividend, equivalent to a 0.5% annualized yield.

Telephone and Data Systems, Inc. (NYSE:TDS - Get Free Report) shares fell 4.7% during trading on Wednesday. The company traded as low as $32.57 and last traded at $32.4740. 342,758 shares traded hands during mid-day trading, a decline of 70% from the average daily volume of 1,144,079 shares. The stock had previously closed at $34.07.

Wall Street Analysts Forecast Growth

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

Telephone and Data Systems Price Performance

The company has a debt-to-equity ratio of 0.15, a quick ratio of 3.81 and a current ratio of 3.82. The business has a 50 day simple moving average of $35.24 and a 200-day simple moving average of $38.02. The firm has a market cap of $3.59 billion, a price-to-earnings ratio of 10.47 and a beta of 0.32.

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 EPS for the quarter, beating the consensus estimate of $0.09 by $2.15. The business had revenue of $309.28 million for the quarter, compared to the consensus estimate of $315.78 million. Telephone and Data Systems had a return on equity of 11.97% and a net margin of 33.20%. Telephone and Data Systems's revenue for the quarter was up 3.6% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.05) earnings per share. Equities research analysts expect that Telephone and Data Systems, Inc. will post -0.24 earnings per share for the current year.

Telephone and Data Systems Dividend Announcement

The business also recently disclosed 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 presently 5.33%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. EverSource Wealth Advisors LLC increased its position in Telephone and Data Systems by 29.2% in the first quarter. EverSource Wealth Advisors LLC now owns 1,085 shares of the Wireless communications provider's stock worth $46,000 after purchasing an additional 245 shares during the last quarter. Caitong International Asset Management Co. Ltd grew its stake in 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 acquiring an additional 1,084 shares in the last quarter. TD Waterhouse Canada Inc. raised its position in Telephone and Data Systems by 446.9% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 1,340 shares of the Wireless communications provider's stock valued at $50,000 after purchasing an additional 1,095 shares in the last quarter. Nykredit A S purchased a new stake in Telephone and Data Systems during the second quarter worth $59,000. Finally, Ameliora Wealth Management Ltd. bought a new stake in shares of Telephone and Data Systems in the 1st quarter valued at about $90,000. Institutional investors own 80.00% of the company's stock.

Telephone and Data Systems Company Profile

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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