Telephone and Data Systems (NYSE:TDS) Sets New 52-Week Low - Here's Why

Key Points

• Telephone and Data Systems shares fell to a new 52-week low of $32.94 during Friday trading, compared with a prior close of $33.58. The stock has 50-day and 200-day moving averages of $37.08 and $41.79, respectively.
• Analyst sentiment is largely neutral: TDS has an average rating of “Hold” from five analysts, with a consensus price target of $53.33. Recent actions included rating cuts from Weiss Ratings and Raymond James, partially offset by Wall Street Zen upgrading the stock to Hold.
• The company reported quarterly EPS of $1.11, beating estimates by $1.98, while revenue increased 6.5% year over year to $309.45 million. TDS also paid a $0.04 quarterly dividend, equal to a 0.5% yield, and institutional investors own about 80% of its shares.

Telephone and Data Systems, Inc. (NYSE:TDS - Get Free Report) shares reached a new 52-week low during mid-day trading on Friday . The stock traded as low as $32.94 and last traded at $33.2740, with a volume of 52668 shares. The stock had previously closed at $33.58.

Analyst Ratings Changes

TDS has been the topic of a number of recent research reports. Weiss Ratings lowered shares of Telephone and Data Systems from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, June 18th. 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. Finally, Raymond James Financial cut shares of Telephone and Data Systems from an "outperform" rating to a "market perform" rating in a report on Monday, May 11th. Two equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $53.33.

Telephone and Data Systems Stock Down 0.8%

The firm has a 50 day moving average price of $37.08 and a 200-day moving average price of $41.79. 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 firm has a market cap of $3.79 billion, a PE ratio of 62.79 and a beta of 0.30.

Telephone and Data Systems (NYSE:TDS - Get Free Report) last released its earnings results on Friday, May 8th. The Wireless communications provider reported $1.11 earnings per share for the quarter, topping analysts' consensus estimates of ($0.87) by $1.98. Telephone and Data Systems had a net margin of 6.15% and a return on equity of 5.54%. The firm had revenue of $309.45 million for the quarter, compared to analyst estimates of $313.27 million. During the same period in the prior year, the firm earned ($0.09) earnings per share. The business's quarterly revenue was up 6.5% compared to the same quarter last year. Research 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 company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 16th were paid 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 dividend yield of 0.5%. Telephone and Data Systems's payout ratio is presently 30.19%.

Hedge Funds Weigh In On Telephone and Data Systems

Several large investors have recently bought and sold shares of the business. Royal Bank of Canada lifted its holdings in Telephone and Data Systems by 25.8% during the 1st quarter. Royal Bank of Canada now owns 42,165 shares of the Wireless communications provider's stock worth $1,633,000 after buying an additional 8,640 shares during the last quarter. AQR Capital Management LLC boosted its holdings in Telephone and Data Systems by 21.3% in the first quarter. AQR Capital Management LLC now owns 67,125 shares of the Wireless communications provider's stock valued at $2,574,000 after purchasing an additional 11,769 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Telephone and Data Systems by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 58,721 shares of the Wireless communications provider's stock valued at $2,275,000 after purchasing an additional 2,572 shares in the last quarter. United Services Automobile Association purchased a new position in Telephone and Data Systems in the first quarter valued at approximately $248,000. Finally, Russell Investments Group Ltd. increased its stake in Telephone and Data Systems by 358.3% in the second quarter. Russell Investments Group Ltd. now owns 27,043 shares of the Wireless communications provider's stock valued at $962,000 after purchasing an additional 21,142 shares during the last quarter. Hedge funds and other 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 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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