Telephone and Data Systems (NYSE:TDS) Reaches New 1-Year Low - Here's Why

Key Points

• Telephone and Data Systems (NYSE:TDS) hit a new 52-week low, trading as low as $33.01 after closing at $33.81, reflecting continued weakness in the stock.
• Analyst sentiment remains cautious: recent rating changes included upgrades and downgrades, but the stock’s overall consensus is still Hold with a price target of $53.33.
• The company reported better-than-expected quarterly earnings of $1.11 EPS, though revenue missed estimates slightly; TDS also pays a small dividend yielding about 0.5%.

Telephone and Data Systems, Inc. (NYSE:TDS - Get Free Report)'s share price reached a new 52-week low during trading on Thursday . The stock traded as low as $33.01 and last traded at $33.7550, with a volume of 54826 shares traded. The stock had previously closed at $33.81.

Analyst Upgrades and Downgrades

TDS has been the topic of a number of analyst reports. Wall Street Zen raised shares of Telephone and Data Systems from a "sell" rating to a "hold" rating in a research note on Saturday, May 30th. Raymond James Financial downgraded shares of Telephone and Data Systems from an "outperform" rating to a "market perform" rating in a report on Monday, May 11th. Finally, 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, June 18th. 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 currently has an average rating of "Hold" and a consensus price target of $53.33.

Telephone and Data Systems Stock Down 0.3%

The company has a market cap of $3.83 billion, a price-to-earnings ratio of 63.54 and a beta of 0.30. The company has a current ratio of 3.43, a quick ratio of 3.42 and a debt-to-equity ratio of 0.16. The business has a fifty day moving average of $37.99 and a two-hundred day moving average of $42.09.

Telephone and Data Systems (NYSE:TDS - Get Free Report) last issued its quarterly earnings data on Friday, May 8th. The Wireless communications provider reported $1.11 EPS for the quarter, beating the consensus estimate of ($0.87) by $1.98. The company had revenue of $309.45 million for the quarter, compared to analyst estimates of $313.27 million. Telephone and Data Systems had a return on equity of 5.54% and a net margin of 6.15%.Telephone and Data Systems's quarterly revenue was up 6.5% compared to the same quarter last year. During the same period last year, the company earned ($0.09) earnings per share. As a group, equities analysts anticipate that Telephone and Data Systems, Inc. will post 0.94 EPS for the current fiscal year.

Telephone and Data Systems Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 16th were paid a $0.04 dividend. The ex-dividend date of this dividend was Tuesday, June 16th. This represents a $0.16 dividend on an annualized basis and a yield of 0.5%. Telephone and Data Systems's dividend payout ratio (DPR) is currently 30.19%.

Institutional Investors Weigh In On Telephone and Data Systems

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Captrust Financial Advisors increased its stake in Telephone and Data Systems by 3.8% during the fourth quarter. Captrust Financial Advisors now owns 6,026 shares of the Wireless communications provider's stock worth $247,000 after purchasing an additional 220 shares during the period. Salomon & Ludwin LLC lifted its position in shares of Telephone and Data Systems by 51.3% during the fourth quarter. Salomon & Ludwin LLC now owns 681 shares of the Wireless communications provider's stock worth $28,000 after purchasing an additional 231 shares in the last quarter. CIBC Asset Management Inc boosted its stake in shares of Telephone and Data Systems by 2.4% in the fourth quarter. CIBC Asset Management Inc now owns 9,804 shares of the Wireless communications provider's stock valued at $402,000 after purchasing an additional 232 shares during the period. Maryland State Retirement & Pension System boosted its stake in shares of Telephone and Data Systems by 1.6% in the fourth quarter. Maryland State Retirement & Pension System now owns 14,362 shares of the Wireless communications provider's stock valued at $589,000 after purchasing an additional 233 shares during the period. Finally, HighTower Advisors LLC grew its holdings in shares of Telephone and Data Systems by 4.3% in the fourth quarter. HighTower Advisors LLC now owns 5,866 shares of the Wireless communications provider's stock valued at $241,000 after purchasing an additional 240 shares in the last quarter. Hedge funds and other institutional investors own 80.00% of the company's stock.

About Telephone and Data Systems

Telephone and Data Systems, Inc NYSE: TDS is a diversified telecommunications company headquartered in Chicago, Illinois. Through its subsidiaries, the company provides a broad array of communications services, including wireless voice and data, wireline broadband and voice, cable television, and managed IT and cloud solutions. Its two primary operating units—TDS Telecom and U.S. Cellular—serve residential, business and wholesale customers across the United States.

TDS Telecom focuses on delivering broadband internet, digital voice, video and data communications services in primarily rural and suburban markets.

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