Telephone and Data Systems (NYSE:TDS) Hits New 12-Month Low – Should You Sell?

Telephone and Data Systems, Inc. (NYSE:TDS)’s share price reached a new 52-week low during trading on Thursday. The stock traded as low as $30.69 and last traded at $30.7640, with a volume of 977,441 shares. The stock had previously closed at $31.78.

Analyst Ratings Changes

TDS has been the subject of several recent analyst reports. Citigroup reduced their target price on Telephone and Data Systems from $50.00 to $47.00 and set a “buy” rating for the company in a report on Thursday, August 13th. JPMorgan Chase & Co. dropped their price target on Telephone and Data Systems from $51.00 to $48.00 and set an “overweight” rating on the stock in a report on Wednesday, August 19th. Weiss Ratings upgraded Telephone and Data Systems from a “hold (c)” rating to a “hold (c+)” rating in a research note on Monday. Finally, Zacks Research lowered Telephone and Data Systems from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, September 9th. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $47.50.

Telephone and Data Systems Stock Down 3.2%

The stock’s 50-day moving average price is $35.28 and its two-hundred day moving average price is $39.18. The company has a current ratio of 4.01, a quick ratio of 4.00 and a debt-to-equity ratio of 0.16. The stock has a market capitalization of $3.54 billion, a P/E ratio of 7.52 and a beta of 0.36.

Telephone and Data Systems (NYSE:TDS) last issued its quarterly earnings results on Friday, November 6th. The Wireless communications provider reported $0.26 EPS for the quarter, beating analysts’ consensus estimates of $0.11 by $0.15. Telephone and Data Systems had a return on equity of 12.48% and a net margin of 43.41%. The firm had revenue of $306.69 million for the quarter, compared to analysts’ expectations of $309.14 million. During the same quarter in the prior year, the firm earned $0.33 EPS. The business’s revenue for the quarter was down .6% compared to the same quarter last year. As a group, research analysts expect that Telephone and Data Systems, Inc. will post -0.64 earnings per share for the current fiscal year.

Telephone and Data Systems Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were paid a $0.04 dividend. The ex-dividend date was Tuesday, September 15th. This represents a $0.16 annualized dividend and a yield of 0.5%. Telephone and Data Systems’s dividend payout ratio (DPR) is currently 3.91%.

Institutional Investors Weigh In On Telephone and Data Systems

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC grew its position in Telephone and Data Systems by 29.2% in the first quarter. EverSource Wealth Advisors LLC now owns 1,085 shares of the Wireless communications provider’s stock worth $46,000 after acquiring an additional 245 shares in the last quarter. NewEdge Advisors LLC raised its stake in shares of Telephone and Data Systems by 0.5% during the first quarter. NewEdge Advisors LLC now owns 74,691 shares of the Wireless communications provider’s stock valued at $3,144,000 after acquiring an additional 353 shares during the last quarter. Versant Capital Management Inc lifted its holdings in Telephone and Data Systems by 16.3% in the 2nd quarter. Versant Capital Management Inc now owns 2,730 shares of the Wireless communications provider’s stock worth $101,000 after buying an additional 383 shares during the period. CenterBook Partners LP increased its position in Telephone and Data Systems by 2.2% during the 3rd quarter. CenterBook Partners LP now owns 19,601 shares of the Wireless communications provider’s stock valued at $665,000 after purchasing an additional 423 shares during the period. Finally, Parallel Advisors LLC lifted its holdings in Telephone and Data Systems by 17.1% in the first quarter. Parallel Advisors LLC now owns 3,307 shares of the Wireless communications provider’s stock worth $139,000 after buying an additional 484 shares during the period. 80.00% of the stock is owned by hedge funds and other institutional investors.

About Telephone and Data Systems

Telephone and Data Systems, Inc. (TDS) is a U.S. telecommunications company founded in 1969. Its TDS Telecom business provides broadband, video and voice services to residential and business customers, using fiber and other wired networks as well as fixed wireless in some areas. TDS Telecom serves communities across multiple U.S. states, including smaller and rural markets. Its offerings include high-speed internet access, television service and business communications solutions. TDS has also operated wireless telecommunications businesses during its history.