Zacks Investment Research lowered shares of Telephone and Data Systems, Inc. (NYSE:TDS) from a buy rating to a hold rating in a research report report published on Tuesday morning.

According to Zacks, “Telephone and Data Systems is experiencing strong smartphone demand at its wireless wing – U.S. Cellular. Meanwhile, the company is striving hard to expand its business in the managed hosting and cloud service market. Launch of Shared Data plans for consumers and businesses at nominal prices have helped the company gain consumers. The company's IPTV is also doing considerably well. However, intense competition, roaming revenues related woes, costs associated with network integration and construction of new cell sites, aggressive equipment pricing, wireless technology upgrades and spectrum licensing are near-term risks. Over the past six months, share price of Telephone and Data Systems declined 4.76%, whereas the Zacks categorized 'Wireline National' industry.declined 3.25%.”

Separately, BidaskClub cut Telephone and Data Systems from a buy rating to a hold rating in a research note on Thursday, June 22nd. Five equities research analysts have rated the stock with a hold rating, Telephone and Data Systems presently has an average rating of Hold and an average target price of $36.00.

Telephone and Data Systems (NYSE:TDS) opened at 28.30 on Tuesday. The firm has a 50 day moving average of $27.99 and a 200 day moving average of $27.94. Telephone and Data Systems has a one year low of $24.12 and a one year high of $32.98. The firm has a market capitalization of $3.12 billion, a PE ratio of 43.47 and a beta of 1.05.

Telephone and Data Systems (NYSE:TDS) last announced its quarterly earnings results on Friday, May 5th. The Wireless communications provider reported $0.33 EPS for the quarter, beating analysts’ consensus estimates of $0.01 by $0.32. The company had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.24 billion. Telephone and Data Systems had a return on equity of 1.41% and a net margin of 1.43%. Telephone and Data Systems’s revenue was down 1.3% on a year-over-year basis. During the same period in the prior year, the business posted $0.07 EPS. Equities analysts forecast that Telephone and Data Systems will post $0.43 EPS for the current year.

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The business also recently declared a quarterly dividend, which was paid on Friday, June 30th. Stockholders of record on Friday, June 16th were paid a $0.155 dividend. The ex-dividend date was Wednesday, June 14th. This represents a $0.62 dividend on an annualized basis and a dividend yield of 2.19%. Telephone and Data Systems’s dividend payout ratio (DPR) is presently 96.88%.

Several hedge funds have recently made changes to their positions in the stock. Envestnet Asset Management Inc. boosted its stake in shares of Telephone and Data Systems by 30.8% in the fourth quarter. Envestnet Asset Management Inc. now owns 4,010 shares of the Wireless communications provider’s stock worth $116,000 after buying an additional 944 shares during the period. Thrivent Financial for Lutherans boosted its stake in shares of Telephone and Data Systems by 8.3% in the fourth quarter. Thrivent Financial for Lutherans now owns 15,905 shares of the Wireless communications provider’s stock worth $459,000 after buying an additional 1,220 shares during the period. Norges Bank bought a new stake in shares of Telephone and Data Systems during the fourth quarter worth approximately $20,694,000. Quadrature Capital Ltd boosted its stake in shares of Telephone and Data Systems by 46.1% in the fourth quarter. Quadrature Capital Ltd now owns 12,479 shares of the Wireless communications provider’s stock worth $360,000 after buying an additional 3,935 shares during the period. Finally, UBS Asset Management Americas Inc. boosted its stake in shares of Telephone and Data Systems by 55.5% in the fourth quarter. UBS Asset Management Americas Inc. now owns 164,704 shares of the Wireless communications provider’s stock worth $4,754,000 after buying an additional 58,751 shares during the period. 81.01% of the stock is owned by institutional investors.

About Telephone and Data Systems

Telephone and Data Systems, Inc is a diversified telecommunications company. The Company is engaged in conducting its Wireless operations through its subsidiary, United States Cellular Corporation (U.S. Cellular), as well as providing its wireline services, cable services, and hosted and managed services (HMS), through its subsidiary, TDS Telecommunications Corporation (TDS Telecom).

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