Telephone and Data Systems (NYSE:TDS) Upgraded at Wall Street Zen

Key Points

• Telephone and Data Systems (NYSE:TDS) was upgraded by Wall Street Zen from “sell” to “hold”, adding to a generally improving analyst view of the stock.
• The company reported first-quarter EPS of $1.11, far better than the expected loss, while revenue rose 6.5% year over year to $309.45 million.
• TDS is also pursuing a proposal to acquire the public shares of Array Digital Infrastructure in an all-stock deal, though the transaction is still preliminary and under review by a special committee.

Telephone and Data Systems (NYSE:TDS - Get Free Report) was upgraded by Wall Street Zen from a "sell" rating to a "hold" rating in a report released on Saturday.

Several other brokerages have also issued reports on TDS. 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. Citigroup increased their price objective on shares of Telephone and Data Systems from $51.00 to $56.00 and gave the stock a "buy" rating in a research note on Monday, February 23rd. Three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $53.33.

Telephone and Data Systems Trading Up 2.2%

NYSE:TDS opened at $46.48 on Friday. The company has a market cap of $5.29 billion, a P/E ratio of -71.51 and a beta of 0.33. Telephone and Data Systems has a twelve month low of $32.60 and a twelve month high of $49.12. The business has a 50 day moving average price of $44.32 and a two-hundred day moving average price of $42.33. The company has a quick ratio of 2.09, a current ratio of 2.10 and a debt-to-equity ratio of 0.20.

Telephone and Data Systems (NYSE:TDS - Get Free Report) last posted its quarterly earnings data on Friday, May 8th. The Wireless communications provider reported $1.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.87) by $1.98. The company had revenue of $309.45 million for the quarter, compared to the consensus estimate of $313.28 million. Telephone and Data Systems had a negative net margin of 0.21% and a positive return on equity of 2.25%. The firm's revenue was up 6.5% compared to the same quarter last year. During the same period last year, the company earned ($0.09) earnings per share. As a group, analysts expect that Telephone and Data Systems will post -0.74 EPS for the current fiscal year.

Hedge Funds Weigh In On Telephone and Data Systems

Institutional investors have recently bought and sold shares of the business. Dimensional Fund Advisors LP raised its stake in Telephone and Data Systems by 1.4% in the first quarter. Dimensional Fund Advisors LP now owns 6,482,147 shares of the Wireless communications provider's stock valued at $272,898,000 after buying an additional 90,097 shares during the period. Parallel Advisors LLC increased its holdings in shares of Telephone and Data Systems by 17.1% during the 1st quarter. Parallel Advisors LLC now owns 3,307 shares of the Wireless communications provider's stock worth $139,000 after acquiring an additional 484 shares during the last quarter. Hahn Capital Management LLC bought a new stake in Telephone and Data Systems in the 1st quarter valued at $4,999,000. Swiss National Bank raised its stake in Telephone and Data Systems by 0.3% in the 1st quarter. Swiss National Bank now owns 203,000 shares of the Wireless communications provider's stock valued at $8,546,000 after acquiring an additional 700 shares during the period. Finally, Bessemer Group Inc. lifted its holdings in Telephone and Data Systems by 0.6% during the 1st quarter. Bessemer Group Inc. now owns 88,810 shares of the Wireless communications provider's stock valued at $3,738,000 after purchasing an additional 490 shares during the last quarter. Institutional investors and hedge funds own 80.00% of the company's stock.

More Telephone and Data Systems News

Here are the key news stories impacting Telephone and Data Systems this week:

• Positive Sentiment: TDS reported first-quarter 2026 EPS of $1.11, beating Wall Street’s expectation of a loss and signaling a much stronger quarter than analysts had modeled. Revenue also rose 6.5% year over year, reinforcing the improving operating trend. TDS reports first quarter 2026 results
• Positive Sentiment: The company announced a proposal to acquire the public shares of Array Digital Infrastructure in an all-stock deal, which TDS says could streamline its structure and improve capital flexibility for long-term growth. Telephone and Data Systems Announces Proposal to Acquire Public Shares of Array Digital Infrastructure
• Neutral Sentiment: Array Digital Infrastructure formed a special committee of independent directors to review TDS’s non-binding acquisition proposal, indicating the deal is still preliminary and subject to negotiation and approval. Array Digital Infrastructure Forms Special Committee
• Neutral Sentiment: Zacks highlighted that investors were watching key Q1 operating metrics versus estimates and year-ago figures, but the main takeaway remains that TDS delivered a strong earnings surprise. Compared to Estimates, TDS (TDS) Q1 Earnings: A Look at Key Metrics

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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