Weiss Ratings Downgrades Telephone and Data Systems (NYSE:TDS) to Sell (D+)

Key Points

• Weiss Ratings has downgraded Telephone and Data Systems (NYSE:TDS) from a "hold (C-)" rating to a "sell (D+)" as of Friday.
• Despite the downgrade, other analysts such as Zacks Research and Raymond James have given mixed ratings, with some raising their ratings to "hold" and "outperform."
• TDS reported a quarterly loss of (0.05) EPS, missing expectations, amid a revenue decline of 5.7% compared to the previous year.

Telephone and Data Systems (NYSE:TDS - Get Free Report) was downgraded by analysts at Weiss Ratings from a "hold (c-)" rating to a "sell (d+)" rating in a report issued on Friday,Weiss Ratings reports.

TDS has been the topic of a number of other reports. Zacks Research raised Telephone and Data Systems from a "strong sell" rating to a "hold" rating in a research report on Wednesday, August 13th. Raymond James Financial lifted their target price on Telephone and Data Systems from $49.00 to $50.00 and gave the stock an "outperform" rating in a research report on Tuesday, August 12th. Wall Street Zen raised Telephone and Data Systems from a "sell" rating to a "hold" rating in a research report on Sunday, August 17th. Finally, JPMorgan Chase & Co. lifted their target price on Telephone and Data Systems from $53.00 to $54.00 and gave the stock an "overweight" rating in a research report on Tuesday, August 12th. Two analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $52.00.

Telephone and Data Systems Trading Up 1.2%

NYSE:TDS opened at $38.95 on Friday. The business's 50-day moving average is $38.86 and its two-hundred day moving average is $37.02. The company has a debt-to-equity ratio of 0.85, a current ratio of 1.78 and a quick ratio of 1.65. Telephone and Data Systems has a 12 month low of $26.95 and a 12 month high of $42.74. The firm has a market capitalization of $4.48 billion, a PE ratio of -40.15 and a beta of 0.39.

Telephone and Data Systems (NYSE:TDS - Get Free Report) last released its quarterly earnings data on Monday, August 11th. The Wireless communications provider reported ($0.05) EPS for the quarter, missing the consensus estimate of ($0.01) by ($0.04). Telephone and Data Systems had a negative net margin of 0.85% and a positive return on equity of 0.92%. The company had revenue of $1.19 billion during the quarter, compared to analysts' expectations of $1.17 billion. During the same period last year, the business earned ($0.13) earnings per share. The company's revenue for the quarter was down 5.7% compared to the same quarter last year. Research analysts predict that Telephone and Data Systems will post -0.31 earnings per share for the current fiscal year.

Insider Transactions at Telephone and Data Systems

In related news, CFO Vicki L. Villacrez sold 73,878 shares of Telephone and Data Systems stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $38.88, for a total value of $2,872,376.64. Following the completion of the transaction, the chief financial officer directly owned 81,035 shares in the company, valued at approximately $3,150,640.80. This trade represents a 47.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Prudence E. Carlson sold 6,320 shares of Telephone and Data Systems stock in a transaction dated Thursday, August 14th. The stock was sold at an average price of $38.05, for a total value of $240,476.00. Following the completion of the transaction, the director owned 315,457 shares of the company's stock, valued at $12,003,138.85. This trade represents a 1.96% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 276,650 shares of company stock valued at $10,690,789 over the last ninety days. 14.97% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Telephone and Data Systems

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Assetmark Inc. boosted its stake in Telephone and Data Systems by 53.1% in the second quarter. Assetmark Inc. now owns 1,297 shares of the Wireless communications provider's stock valued at $46,000 after acquiring an additional 450 shares during the period. EverSource Wealth Advisors LLC boosted its stake in Telephone and Data Systems by 191.3% in the second quarter. EverSource Wealth Advisors LLC now owns 1,311 shares of the Wireless communications provider's stock valued at $47,000 after acquiring an additional 861 shares during the period. Bayforest Capital Ltd boosted its stake in Telephone and Data Systems by 121.8% in the first quarter. Bayforest Capital Ltd now owns 1,342 shares of the Wireless communications provider's stock valued at $52,000 after acquiring an additional 737 shares during the period. Osaic Holdings Inc. boosted its stake in Telephone and Data Systems by 36.8% in the second quarter. Osaic Holdings Inc. now owns 2,965 shares of the Wireless communications provider's stock valued at $106,000 after acquiring an additional 797 shares during the period. Finally, Forum Financial Management LP bought a new stake in shares of Telephone and Data Systems during the first quarter valued at approximately $200,000. 80.00% of the stock is currently owned by institutional investors and hedge funds.

Telephone and Data Systems Company Profile

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.

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