Telephone and Data Systems (NYSE:TDS) Stock Passes Above 200-Day Moving Average - Should You Sell?

Key Points

• Shares recently rose above the 200-day moving average of $41.07, trading as high as $43.29 (last $43.17), a short-term technical bullish signal.
• Telephone and Data Systems beat Q4 expectations with $0.32 EPS vs. $0.09 est. and revenue of $330.7M (up 12% YoY), but the company still shows a negative net margin and analysts forecast -0.31 EPS for the year.
• Analysts are mixed but the consensus is a "Moderate Buy" with an average price target of $53.33 (Citigroup at $56), and the company announced a $0.04 quarterly dividend (annualized yield ~0.4%).

Telephone and Data Systems, Inc. (NYSE:TDS - Get Free Report) shares passed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $41.07 and traded as high as $43.29. Telephone and Data Systems shares last traded at $43.1650, with a volume of 590,020 shares traded.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Zacks Research downgraded Telephone and Data Systems from a "strong-buy" rating to a "hold" rating in a research note on Thursday, January 1st. Citigroup increased their target price on shares of Telephone and Data Systems from $51.00 to $56.00 and gave the stock a "buy" rating in a report on Monday, February 23rd. Weiss Ratings upgraded shares of Telephone and Data Systems from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Tuesday, February 24th. Finally, Wall Street Zen downgraded shares of Telephone and Data Systems from a "hold" rating to a "sell" rating in a report on Sunday, March 1st. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $53.33.

Telephone and Data Systems Trading Up 0.1%

The stock has a market cap of $4.96 billion, a P/E ratio of -66.41 and a beta of 0.34. The stock's 50-day moving average is $44.58 and its two-hundred day moving average is $41.07. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.10 and a quick ratio of 2.09.

Telephone and Data Systems (NYSE:TDS - Get Free Report) last announced its quarterly earnings results on Friday, February 20th. The Wireless communications provider reported $0.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.09 by $0.23. Telephone and Data Systems had a negative net margin of 0.21% and a positive return on equity of 2.25%. The company had revenue of $330.71 million for the quarter, compared to the consensus estimate of $319.28 million. During the same period in the previous year, the firm posted ($0.10) EPS. Telephone and Data Systems's revenue for the quarter was up 12.0% compared to the same quarter last year. Equities research analysts anticipate that Telephone and Data Systems, Inc. will post -0.31 EPS for the current year.

Telephone and Data Systems Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Monday, March 16th will be given a $0.04 dividend. This represents a $0.16 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Monday, March 16th. Telephone and Data Systems's payout ratio is currently -24.62%.

Hedge Funds Weigh In On Telephone and Data Systems

Several institutional investors have recently added to or reduced their stakes in the company. Hsbc Holdings PLC grew its holdings in Telephone and Data Systems by 198.9% during the 4th quarter. Hsbc Holdings PLC now owns 23,315 shares of the Wireless communications provider's stock valued at $956,000 after buying an additional 15,516 shares in the last quarter. Sentinel Dome Partners LLC purchased a new stake in shares of Telephone and Data Systems during the 4th quarter worth approximately $4,920,000. Caitong International Asset Management Co. Ltd boosted its position in shares of Telephone and Data Systems by 2,779.5% during 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 acquiring an additional 1,084 shares during the last quarter. Mariner Investment Group LLC purchased a new position in shares of Telephone and Data Systems in the fourth quarter valued at $205,000. Finally, Invesco Ltd. grew its holdings in shares of Telephone and Data Systems by 5.3% in the fourth quarter. Invesco Ltd. now owns 1,249,344 shares of the Wireless communications provider's stock valued at $51,223,000 after purchasing an additional 62,688 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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