Telephone and Data Systems' (TDS) "Outperform" Rating Reiterated at Raymond James Financial

Key Points

• Raymond James Financial has restated its "outperform" rating on Telephone and Data Systems (TDS) with a revised price target of $49.00, indicating a potential upside of 20.51% from the current stock price.
• TDS shares traded up 1.9% to reach $40.66 during recent trading, with a market capitalization of $4.64 billion.
• The company reported a loss of ($0.09) earnings per share for the latest quarter, falling short of analysts' estimates of ($0.02) and reflecting an 8.6% year-over-year revenue decline.
• Institutional investors own 80% of TDS stock, with notable hedge fund activity such as Sumitomo Mitsui Trust Group Inc. increasing its stake by 21.4% in the first quarter.

Telephone and Data Systems (NYSE:TDS - Get Free Report)'s stock had its "outperform" rating reissued by equities research analysts at Raymond James Financial in a research report issued on Friday,Benzinga reports. They currently have a $49.00 price target on the Wireless communications provider's stock, up from their previous price target of $47.00. Raymond James Financial's price objective indicates a potential upside of 22.34% from the company's previous close.

Other research analysts have also issued reports about the company. Wall Street Zen raised Telephone and Data Systems from a "sell" rating to a "hold" rating in a research report on Saturday, July 12th. JPMorgan Chase & Co. lowered their price objective on Telephone and Data Systems from $56.00 to $53.00 and set an "overweight" rating for the company in a research report on Wednesday, May 28th.

Telephone and Data Systems Trading Up 0.4%

Shares of NYSE TDS traded up $0.15 during trading on Friday, reaching $40.05. The company had a trading volume of 3,423,663 shares, compared to its average volume of 1,349,458. The stock has a market cap of $4.57 billion, a P/E ratio of -38.15 and a beta of 0.51. Telephone and Data Systems has a 12 month low of $17.90 and a 12 month high of $42.74. The company has a quick ratio of 1.55, a current ratio of 1.74 and a debt-to-equity ratio of 0.85. The company's fifty day moving average price is $35.67 and its 200-day moving average price is $35.92.

Telephone and Data Systems (NYSE:TDS - Get Free Report) last issued its quarterly earnings results on Friday, May 2nd. The Wireless communications provider reported ($0.09) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.07). The firm had revenue of $1.15 billion during the quarter, compared to analyst estimates of $1.18 billion. Telephone and Data Systems had a positive return on equity of 0.73% and a negative net margin of 1.03%. The firm's revenue for the quarter was down 8.6% on a year-over-year basis. During the same quarter last year, the firm posted $0.10 EPS. As a group, research analysts expect that Telephone and Data Systems will post -0.31 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Third Point LLC boosted its position in shares of Telephone and Data Systems by 12.7% during the 1st quarter. Third Point LLC now owns 6,760,000 shares of the Wireless communications provider's stock worth $261,882,000 after purchasing an additional 760,000 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in shares of Telephone and Data Systems by 1.7% during the 1st quarter. Dimensional Fund Advisors LP now owns 6,354,795 shares of the Wireless communications provider's stock worth $246,181,000 after purchasing an additional 107,501 shares in the last quarter. American Century Companies Inc. boosted its position in shares of Telephone and Data Systems by 7.5% during the 1st quarter. American Century Companies Inc. now owns 3,470,363 shares of the Wireless communications provider's stock worth $134,442,000 after purchasing an additional 240,795 shares in the last quarter. Carronade Capital Management LP boosted its position in shares of Telephone and Data Systems by 48.2% during the 1st quarter. Carronade Capital Management LP now owns 2,730,517 shares of the Wireless communications provider's stock worth $105,780,000 after purchasing an additional 888,108 shares in the last quarter. Finally, Silver Point Capital L.P. boosted its position in shares of Telephone and Data Systems by 19.8% during the 1st quarter. Silver Point Capital L.P. now owns 2,205,000 shares of the Wireless communications provider's stock worth $85,422,000 after purchasing an additional 365,000 shares in the last quarter. 80.00% of the stock is owned by institutional investors.

About Telephone and Data Systems

Telephone and Data Systems, Inc, a telecommunications company, provides communications services in the United States. It operates through two segments: UScellular and TDS Telecom. The company offers wireless solutions to consumers, and business and government customers, including a suite of connected Internet of things (IoT) solutions, and software applications for monitor and control, business automation/operations, communication, fleet and asset management, smart water solutions, private cellular networks and custom, and end-to-end IoT solutions; wireless priority services and quality priority and preemption options; smartphones and other handsets, tablets, wearables, mobile hotspots, fixed wireless home internet, and IoT devices; and accessories, such as cases, screen protectors, chargers, and memory cards, as well as consumer electronics, including audio, home automation and networking products.