Telephone and Data Systems (NYSE:TDS) Sets New 12-Month Low - Should You Sell?

Key Points

• TDS shares fell to a new 52-week low of $31.51, last trading around $32.95 versus the prior close of $36.00.
• Analyst sentiment is mixed but leans toward “Hold”: two analysts rate the stock a Buy and three a Hold, with an average price target of $53.33.
• The company reported quarterly EPS of $2.24, well above the $0.09 consensus estimate, while revenue of $309.28 million slightly missed expectations. TDS also maintains a quarterly dividend of $0.04 per share, 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 Saturday . The stock traded as low as $31.51 and last traded at $32.9540, with a volume of 3332612 shares traded. The stock had previously closed at $36.00.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on TDS shares. Raymond James Financial lowered shares of Telephone and Data Systems from an "outperform" rating to a "market perform" rating in a report on Monday, May 11th. Weiss Ratings downgraded shares of Telephone and Data Systems from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, June 18th. Finally, Wall Street Zen upgraded shares of Telephone and Data Systems from a "sell" rating to a "hold" rating in a research report on Saturday, May 30th. Two analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, Telephone and Data Systems presently has an average rating of "Hold" and an average target price of $53.33.

Telephone and Data Systems Price Performance

The firm has a market capitalization of $3.75 billion, a PE ratio of 62.18 and a beta of 0.32. The stock has a 50-day moving average price of $36.53 and a 200 day moving average price of $41.42. The company has a quick ratio of 3.42, a current ratio of 3.43 and a debt-to-equity ratio of 0.16.

Telephone and Data Systems (NYSE:TDS - Get Free Report) last announced its earnings results on Friday, August 7th. The Wireless communications provider reported $2.24 earnings per share for the quarter, topping the consensus estimate of $0.09 by $2.15. Telephone and Data Systems had a return on equity of 5.54% and a net margin of 6.15%.The business had revenue of $309.28 million during the quarter, compared to the consensus estimate of $315.78 million. During the same period in the prior year, the company posted ($0.05) EPS. The business's quarterly revenue was up 3.6% on a year-over-year basis. Equities analysts forecast that Telephone and Data Systems, Inc. will post 0.94 EPS for the current fiscal year.

Telephone and Data Systems Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 16th were given a dividend of $0.04 per share. The ex-dividend date 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 is currently 30.19%.

Hedge Funds Weigh In On Telephone and Data Systems

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Salomon & Ludwin LLC increased its stake 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. JPL Wealth Management LLC purchased a new position in Telephone and Data Systems in the 3rd quarter valued at about $33,000. Caitong International Asset Management Co. Ltd lifted 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 valued at $46,000 after buying an additional 1,084 shares in the last quarter. EverSource Wealth Advisors LLC lifted its stake in Telephone and Data Systems by 29.2% in the 1st quarter. EverSource Wealth Advisors LLC now owns 1,085 shares of the Wireless communications provider's stock valued at $46,000 after buying an additional 245 shares in the last quarter. Finally, Ameliora Wealth Management Ltd. acquired a new stake in Telephone and Data Systems in the 1st quarter worth about $90,000. 80.00% of the stock is owned by hedge funds and other institutional investors.

Telephone and Data Systems Company Profile

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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