Telephone and Data Systems, Inc. (NYSE:TDS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.

According to Zacks, “Telephone and Data Systems posted weak third-quarter 2017 results. Despite such results, the company is looking for lucrative opportunities to bring more fiber in order to better address services. By leveraging on fiber, the telco is trying to respond to customers' growing TV and broadband service demand. The company continues to expand its business in the managed hosting and cloud service market. Launch of Shared Data plans at nominal prices should help the company gain consumers. The company's IPTV is also doing considerably well. It continues to experience strong smartphone demand at its wireless wing, U.S. Cellular. Over the past three months, the stock underperformed its industry. 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 other risks.”

Several other analysts have also recently commented on the company. Drexel Hamilton raised Telephone and Data Systems from a “hold” rating to a “buy” rating in a research report on Thursday, November 9th. BidaskClub raised Telephone and Data Systems from a “sell” rating to a “hold” rating in a research report on Tuesday, July 25th. Four equities research analysts have rated the stock with a hold rating and one has given a buy rating to the company’s stock. The stock has an average rating of “Hold” and a consensus price target of $29.00.

Shares of Telephone and Data Systems (TDS) traded up $0.63 during midday trading on Wednesday, hitting $25.44. The company had a trading volume of 633,500 shares, compared to its average volume of 692,370. The company has a quick ratio of 2.29, a current ratio of 2.42 and a debt-to-equity ratio of 0.54. The firm has a market cap of $2,744.91, a PE ratio of 55.14 and a beta of 1.02. Telephone and Data Systems has a twelve month low of $24.57 and a twelve month high of $32.97.

Telephone and Data Systems (NYSE:TDS) last issued its earnings results on Wednesday, November 8th. The Wireless communications provider reported $0.08 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.17 by ($0.09). The company had revenue of $1.25 billion during the quarter, compared to analyst estimates of $1.26 billion. Telephone and Data Systems had a positive return on equity of 1.08% and a negative net margin of 2.77%. The business’s revenue was down 4.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.11 earnings per share. sell-side analysts expect that Telephone and Data Systems will post -1.35 EPS for the current year.

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Several institutional investors have recently modified their holdings of the company. BlackRock Inc. boosted its position in shares of Telephone and Data Systems by 4.0% in the second quarter. BlackRock Inc. now owns 17,438,950 shares of the Wireless communications provider’s stock worth $483,932,000 after buying an additional 665,746 shares during the period. Vanguard Group Inc. boosted its position in shares of Telephone and Data Systems by 1.0% in the second quarter. Vanguard Group Inc. now owns 9,763,784 shares of the Wireless communications provider’s stock worth $270,946,000 after buying an additional 95,665 shares during the period. State Street Corp boosted its position in shares of Telephone and Data Systems by 38.3% in the second quarter. State Street Corp now owns 9,044,177 shares of the Wireless communications provider’s stock worth $250,974,000 after buying an additional 2,505,860 shares during the period. Dimensional Fund Advisors LP boosted its position in Telephone and Data Systems by 2.2% during the third quarter. Dimensional Fund Advisors LP now owns 7,459,690 shares of the Wireless communications provider’s stock valued at $208,051,000 after purchasing an additional 162,319 shares during the last quarter. Finally, Gabelli Funds LLC boosted its position in Telephone and Data Systems by 0.9% during the second quarter. Gabelli Funds LLC now owns 2,889,710 shares of the Wireless communications provider’s stock valued at $80,189,000 after purchasing an additional 26,000 shares during the last quarter. 82.27% of the stock is owned by institutional investors and hedge funds.

Telephone and Data Systems Company Profile

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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