Telephone and Data Systems (NYSE:TDS) Shares Down 4.7% – Here’s Why

Telephone and Data Systems, Inc. (NYSE:TDS)’s share price traded down 4.7% on Wednesday. The stock traded as low as $32.57 and last traded at $32.4740. Approximately 342,758 shares changed hands during trading, a decline of 70% from the average session volume of 1,144,079 shares. The stock had previously closed at $34.07.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on TDS shares. Zacks Research cut Telephone and Data Systems from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, September 9th. JPMorgan Chase & Co. cut their price objective on Telephone and Data Systems from $51.00 to $48.00 and set an “overweight” rating for the company in a research note on Wednesday, August 19th. Citigroup dropped their price target on Telephone and Data Systems from $50.00 to $47.00 and set a “buy” rating for the company in a research report on Thursday, August 13th. Finally, Weiss Ratings cut shares of Telephone and Data Systems from a “hold (c+)” rating to a “hold (c)” rating in a research note on Thursday, October 8th. Two analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Telephone and Data Systems has a consensus rating of “Hold” and an average price target of $47.50.

Telephone and Data Systems Trading Down 8.4%

The company has a quick ratio of 3.81, a current ratio of 3.82 and a debt-to-equity ratio of 0.15. The business has a 50-day simple moving average of $35.24 and a 200-day simple moving average of $38.02. The company has a market cap of $3.59 billion, a PE ratio of 10.47 and a beta of 0.32.

Telephone and Data Systems (NYSE:TDS) last posted its quarterly earnings data on Friday, August 7th. The Wireless communications provider reported $2.24 EPS for the quarter, beating the consensus estimate of $0.09 by $2.15. Telephone and Data Systems had a net margin of 33.20% and a return on equity of 11.97%. The business had revenue of $309.28 million during the quarter, compared to analyst estimates of $315.78 million. During the same quarter last year, the firm posted ($0.05) earnings per share. The business’s revenue for the quarter was up 3.6% compared to the same quarter last year. On average, analysts predict that Telephone and Data Systems, Inc. will post -0.24 EPS for the current fiscal year.

Telephone and Data Systems Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were given a dividend of $0.04 per share. This represents a $0.16 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend was Tuesday, September 15th. Telephone and Data Systems’s dividend payout ratio (DPR) is 5.33%.

Hedge Funds Weigh In On Telephone and Data Systems

A number of institutional investors have recently modified their holdings of TDS. Assenagon Asset Management S.A. purchased a new stake in Telephone and Data Systems during the 3rd quarter valued at approximately $2,705,000. Congress Asset Management Co. raised its stake in shares of Telephone and Data Systems by 16.5% during the 3rd quarter. Congress Asset Management Co. now owns 410,666 shares of the Wireless communications provider’s stock worth $13,930,000 after buying an additional 58,169 shares in the last quarter. Tidal Investments LLC grew its holdings in Telephone and Data Systems by 310.4% during the second quarter. Tidal Investments LLC now owns 20,060 shares of the Wireless communications provider’s stock worth $742,000 after acquiring an additional 15,172 shares during the period. Integrated Wealth Concepts LLC purchased a new stake in Telephone and Data Systems during the second quarter worth about $511,000. Finally, NewEdge Advisors LLC lifted its position in shares of Telephone and Data Systems by 9.0% during the 2nd quarter. NewEdge Advisors LLC now owns 81,383 shares of the Wireless communications provider’s stock valued at $3,012,000 after acquiring an additional 6,692 shares during the period. 80.00% of the stock is owned by institutional investors and hedge funds.

Telephone and Data Systems Company Profile

Telephone and Data Systems, Inc (NYSE:TDS) is a telecommunications holding company that provides broadband and communications services in communities across the United States. Its principal operating business is TDS Telecom, which serves residential, business and wholesale customers with internet access, fiber-optic and other broadband connections, voice services, video entertainment and related communications solutions.

TDS Telecom focuses on expanding high-speed broadband availability in rural and suburban markets.