Telephone and Data Systems (NYSE:TDS) Reaches New 1-Year Low – Here’s Why

Shares of Telephone and Data Systems, Inc. (NYSE:TDS) hit a new 52-week low during trading on Thursday . The stock traded as low as $33.01 and last traded at $33.7550, with a volume of 54826 shares changing hands. The stock had previously closed at $33.81.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Raymond James Financial downgraded shares of Telephone and Data Systems from an “outperform” rating to a “market perform” rating in a research note on Monday, May 11th. Wall Street Zen upgraded Telephone and Data Systems from a “sell” rating to a “hold” rating in a research note on Saturday, May 30th. Finally, Weiss Ratings lowered Telephone and Data Systems from a “hold (c)” rating to a “hold (c-)” rating in a report on Thursday, June 18th. Two investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, Telephone and Data Systems presently has a consensus rating of “Hold” and a consensus price target of $53.33.

Telephone and Data Systems Stock Performance

The stock has a 50-day moving average price of $37.99 and a 200 day moving average price of $42.09. The company has a quick ratio of 3.42, a current ratio of 3.43 and a debt-to-equity ratio of 0.16. The firm has a market capitalization of $3.83 billion, a price-to-earnings ratio of 63.54 and a beta of 0.30.

Telephone and Data Systems (NYSE:TDS) last issued its earnings results on Friday, May 8th. The Wireless communications provider reported $1.11 earnings per share for the quarter, beating the consensus estimate of ($0.87) by $1.98. Telephone and Data Systems had a net margin of 6.15% and a return on equity of 5.54%. The firm had revenue of $309.45 million for the quarter, compared to analysts’ expectations of $313.27 million. During the same quarter last year, the company earned ($0.09) earnings per share. The firm’s revenue was up 6.5% compared to the same quarter last year. On average, analysts forecast that Telephone and Data Systems, Inc. will post 0.94 EPS for the current year.

Telephone and Data Systems Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 16th were given a $0.04 dividend. The ex-dividend date of this dividend was Tuesday, June 16th. This represents a $0.16 dividend on an annualized basis and a dividend yield of 0.5%. Telephone and Data Systems’s dividend payout ratio is currently 30.19%.

Institutional Investors Weigh In On Telephone and Data Systems

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Royal Bank of Canada increased its holdings in Telephone and Data Systems by 25.8% in the first quarter. Royal Bank of Canada now owns 42,165 shares of the Wireless communications provider’s stock valued at $1,633,000 after buying an additional 8,640 shares during the last quarter. AQR Capital Management LLC boosted its position in shares of 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 acquiring an additional 11,769 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of Telephone and Data Systems by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 58,721 shares of the Wireless communications provider’s stock worth $2,275,000 after acquiring an additional 2,572 shares in the last quarter. United Services Automobile Association purchased a new position in shares of Telephone and Data Systems in the 1st quarter valued at about $248,000. Finally, Russell Investments Group Ltd. increased its holdings in shares of Telephone and Data Systems by 358.3% in the 2nd quarter. Russell Investments Group Ltd. now owns 27,043 shares of the Wireless communications provider’s stock valued at $962,000 after acquiring an additional 21,142 shares during the last quarter. 80.00% of the stock is currently owned by institutional investors and hedge funds.

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.