Telephone and Data Systems (NYSE:TDS) Rating Lowered to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen has downgraded Telephone and Data Systems (NYSE:TDS) from a "hold" rating to a "sell" rating in a recent report.
• Investment analysts at Raymond James Financial maintained an "outperform" rating with a price target increase to $49, while JPMorgan Chase & Co. reduced their price target from $56 to $53.
• Institutional investors own 80% of TDS's stock, with several firms recently increasing their positions in the company.

Telephone and Data Systems (NYSE:TDS - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday.

Several other research analysts also recently weighed in on TDS. JPMorgan Chase & Co. reduced their price target on shares of Telephone and Data Systems from $56.00 to $53.00 and set an "overweight" rating for the company in a research report on Wednesday, May 28th. Raymond James Financial reiterated an "outperform" rating and issued a $49.00 price objective (up previously from $47.00) on shares of Telephone and Data Systems in a report on Friday, July 25th.

Telephone and Data Systems Price Performance

Shares of TDS traded up $0.36 during mid-day trading on Friday, hitting $39.05. 2,067,202 shares of the company were exchanged, compared to its average volume of 1,050,844. Telephone and Data Systems has a 1-year low of $20.04 and a 1-year high of $42.74. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.55 and a current ratio of 1.74. The company has a 50 day moving average of $36.58 and a 200-day moving average of $36.18. The stock has a market cap of $4.45 billion, a price-to-earnings ratio of -37.13 and a beta of 0.54.

Telephone and Data Systems (NYSE:TDS - Get Free Report) last released its quarterly earnings results on Monday, August 11th. The Wireless communications provider reported ($0.05) earnings per share for the quarter, missing the consensus estimate of ($0.01) by ($0.04). Telephone and Data Systems had a positive return on equity of 0.73% and a negative net margin of 1.03%. The company had revenue of $1.19 billion for the quarter, compared to analyst estimates of $1.17 billion. During the same quarter last year, the company earned ($0.13) EPS. The firm's revenue for the quarter was down 5.7% on a year-over-year basis. Analysts expect that Telephone and Data Systems will post -0.31 EPS for the current fiscal year.

Institutional Trading of Telephone and Data Systems

A number of hedge funds have recently bought and sold shares of the business. Third Point LLC increased its holdings in shares of Telephone and Data Systems by 108.7% during the 4th quarter. Third Point LLC now owns 6,000,000 shares of the Wireless communications provider's stock worth $204,660,000 after buying an additional 3,125,000 shares during the last quarter. Carronade Capital Management LP acquired a new stake in shares of Telephone and Data Systems during the 4th quarter worth approximately $62,845,000. Nuveen LLC acquired a new stake in shares of Telephone and Data Systems during the 1st quarter worth approximately $43,429,000. Silver Point Capital L.P. increased its holdings in shares of Telephone and Data Systems by 47.2% during the 4th quarter. Silver Point Capital L.P. now owns 1,840,000 shares of the Wireless communications provider's stock worth $62,762,000 after buying an additional 590,000 shares during the last quarter. Finally, 140 Summer Partners LP acquired a new stake in shares of Telephone and Data Systems during the 1st quarter worth approximately $21,216,000. Institutional investors and hedge funds own 80.00% of the company's stock.

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.