Telephone and Data Systems (NYSE:TDS) Hits New 52-Week High - Still a Buy?

Key Points

• Telephone and Data Systems shares reached a new 52-week high at $42.74, closing at $41.77 after trading increased volume of 351,664 shares.
• Analyst ratings have varied, with JPMorgan lowering their price target from $56.00 to $53.00, while Raymond James reduced theirs to $47.00, maintaining an "outperform" rating.
• The company reported a quarterly loss of ($0.09) EPS, missing consensus estimates, and saw a significant revenue decline of 8.6% compared to the previous year.
• Telephone and Data Systems announced a quarterly dividend of $0.04 per share, resulting in a 0.39% dividend yield, with an ex-dividend date on June 16th.

Shares of Telephone and Data Systems, Inc. (NYSE:TDS - Get Free Report) reached a new 52-week high during mid-day trading on Friday . The company traded as high as $42.74 and last traded at $41.77, with a volume of 351664 shares. The stock had previously closed at $39.90.

Analyst Upgrades and Downgrades

Several analysts have weighed in on 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. reduced their price target on Telephone and Data Systems from $56.00 to $53.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 28th. Finally, Raymond James Financial reissued an "outperform" rating and set a $49.00 price objective (up previously from $47.00) on shares of Telephone and Data Systems in a research report on Friday.

Telephone and Data Systems Price Performance

The company has a current ratio of 1.74, a quick ratio of 1.55 and a debt-to-equity ratio of 0.85. The company has a market cap of $4.57 billion, a PE ratio of -38.15 and a beta of 0.51. The firm has a 50 day moving average of $35.67 and a two-hundred day moving average of $35.92.

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

Telephone and Data Systems Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Monday, June 16th were given a dividend of $0.04 per share. This represents a $0.16 annualized dividend and a dividend yield of 0.40%. The ex-dividend date of this dividend was Monday, June 16th. Telephone and Data Systems's dividend payout ratio (DPR) is currently -15.24%.

Hedge Funds Weigh In On Telephone and Data Systems

A number of hedge funds have recently added to or reduced their stakes in the company. Envestnet Portfolio Solutions Inc. purchased a new position in Telephone and Data Systems in the fourth quarter worth about $205,000. Xponance Inc. purchased a new position in shares of Telephone and Data Systems in the fourth quarter worth approximately $244,000. Quantbot Technologies LP bought a new stake in Telephone and Data Systems during the fourth quarter valued at approximately $325,000. KLP Kapitalforvaltning AS purchased a new stake in Telephone and Data Systems during the fourth quarter valued at approximately $703,000. Finally, LPL Financial LLC bought a new position in Telephone and Data Systems in the fourth quarter worth approximately $2,371,000. 80.00% of the stock is currently owned by hedge funds and other 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.