Telephone and Data Systems (NYSE:TDS) Shares Down 6.1% Following Weak Earnings

Telephone and Data Systems, Inc. (NYSE:TDS - Get Free Report) traded down 6.1% during mid-day trading on Monday following a weaker than expected earnings announcement. The company traded as low as $32.20 and last traded at $32.21. 783,559 shares changed hands during trading, a decline of 28% from the average session volume of 1,092,453 shares. The stock had previously closed at $34.31.

The Wireless communications provider reported ($0.09) earnings per share (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 1.12% and a negative net margin of 10.72%. The firm had revenue of $1.15 billion for the quarter, compared to the consensus estimate of $1.18 billion. During the same quarter in the previous year, the business posted $0.10 EPS. The firm's revenue for the quarter was down 8.6% compared to the same quarter last year.

Telephone and Data Systems Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, March 31st. Stockholders of record on Monday, March 17th were given a dividend of $0.04 per share. This represents a $0.16 dividend on an annualized basis and a dividend yield of 0.47%. The ex-dividend date was Monday, March 17th. Telephone and Data Systems's payout ratio is -15.24%.

Analyst Ratings Changes

A number of research analysts have recently issued reports on the stock. Raymond James reiterated an "outperform" rating and set a $47.00 price objective (down from $51.00) on shares of Telephone and Data Systems in a report on Monday. JPMorgan Chase & Co. lifted their price objective on shares of Telephone and Data Systems from $53.00 to $56.00 and gave the stock an "overweight" rating in a research report on Monday, February 24th.

Institutional Trading of Telephone and Data Systems

Several institutional investors and hedge funds have recently bought and sold shares of TDS. Independence Bank of Kentucky bought a new position in shares of Telephone and Data Systems in the fourth quarter worth approximately $41,000. Federated Hermes Inc. bought a new position in Telephone and Data Systems during the 4th quarter worth approximately $56,000. SBI Securities Co. Ltd. purchased a new position in shares of Telephone and Data Systems in the fourth quarter worth $74,000. Farther Finance Advisors LLC boosted its holdings in shares of Telephone and Data Systems by 74.5% during the fourth quarter. Farther Finance Advisors LLC now owns 2,707 shares of the Wireless communications provider's stock worth $92,000 after purchasing an additional 1,156 shares during the period. Finally, Smartleaf Asset Management LLC raised its position in Telephone and Data Systems by 139.9% during the 4th quarter. Smartleaf Asset Management LLC now owns 3,749 shares of the Wireless communications provider's stock valued at $128,000 after purchasing an additional 2,186 shares during the last quarter. 80.00% of the stock is currently owned by hedge funds and other institutional investors.

Telephone and Data Systems Stock Down 0.5 %

The company has a 50 day moving average price of $36.04 and a 200-day moving average price of $34.70. The stock has a market capitalization of $3.91 billion, a PE ratio of -6.35 and a beta of 0.57. The company has a debt-to-equity ratio of 0.85, a current ratio of 1.59 and a quick ratio of 1.44.

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.