Telephone and Data Systems (NYSE:TDS) Sets New 52-Week High – Should You Buy?

Telephone and Data Systems, Inc. (NYSE:TDS) shares hit a new 52-week high on Friday . The company traded as high as $45.93 and last traded at $45.2330, with a volume of 38522 shares changing hands. The stock had previously closed at $44.72.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the company. Citigroup lifted their price target on Telephone and Data Systems from $45.00 to $51.00 and gave the stock a “buy” rating in a research report on Wednesday, January 7th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Telephone and Data Systems in a report on Monday, December 29th. Zacks Research lowered Telephone and Data Systems from a “strong-buy” rating to a “hold” rating in a research report on Thursday, January 1st. Finally, Wall Street Zen lowered shares of Telephone and Data Systems from a “hold” rating to a “sell” rating in a research report on Saturday, November 15th. Three analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $51.67.

Telephone and Data Systems Price Performance

The company has a debt-to-equity ratio of 0.20, a current ratio of 1.89 and a quick ratio of 1.88. The stock has a fifty day simple moving average of $40.82 and a 200-day simple moving average of $39.47. The company has a market capitalization of $5.20 billion, a price-to-earnings ratio of -41.66 and a beta of 0.32.

Telephone and Data Systems (NYSE:TDS) last posted its earnings results on Friday, November 7th. The Wireless communications provider reported $0.07 earnings per share for the quarter, beating the consensus estimate of ($0.06) by $0.13. Telephone and Data Systems had a negative net margin of 1.46% and a positive return on equity of 1.15%. The firm had revenue of $308.52 million during the quarter, compared to analyst estimates of $1.16 billion. During the same period in the previous year, the firm earned ($0.73) EPS. The business’s quarterly revenue was down 5.8% on a year-over-year basis. On average, equities research analysts anticipate that Telephone and Data Systems, Inc. will post -0.31 EPS for the current year.

Telephone and Data Systems Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, December 30th. Investors of record on Monday, December 15th were issued a $0.04 dividend. The ex-dividend date of this dividend was Monday, December 15th. This represents a $0.16 dividend on an annualized basis and a yield of 0.4%. Telephone and Data Systems’s dividend payout ratio is presently -14.81%.

Insider Activity

In other news, CAO Anita J. Kroll sold 16,217 shares of the stock in a transaction that occurred on Monday, November 10th. The stock was sold at an average price of $39.02, for a total transaction of $632,787.34. Following the transaction, the chief accounting officer owned 870 shares in the company, valued at $33,947.40. This trade represents a 94.91% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 14.97% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of TDS. Royal Bank of Canada increased its position in shares of Telephone and Data Systems by 25.8% during the first quarter. Royal Bank of Canada now owns 42,165 shares of the Wireless communications provider’s stock worth $1,633,000 after purchasing an additional 8,640 shares in the last quarter. AQR Capital Management LLC boosted its stake in Telephone and Data Systems by 21.3% during the 1st quarter. AQR Capital Management LLC now owns 67,125 shares of the Wireless communications provider’s stock worth $2,574,000 after purchasing an additional 11,769 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Telephone and Data Systems by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 58,721 shares of the Wireless communications provider’s stock worth $2,275,000 after buying an additional 2,572 shares in the last quarter. United Services Automobile Association acquired a new stake in shares of Telephone and Data Systems in the first quarter valued at about $248,000. Finally, Wealth Enhancement Advisory Services LLC raised its position in shares of Telephone and Data Systems by 12.8% in the second quarter. Wealth Enhancement Advisory Services LLC now owns 7,497 shares of the Wireless communications provider’s stock valued at $267,000 after buying an additional 850 shares during the last quarter. 80.00% of the stock is owned by hedge funds and other institutional investors.

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.