Zacks Investment Research upgraded shares of Telephone and Data Systems, Inc. (NYSE:TDS) from a hold rating to a buy rating in a report released on Tuesday. The firm currently has $32.00 price target on the Wireless communications provider’s stock.
According to Zacks, “Telephone and Data Systems posted disappointing second-quarter 2017 financial results, wherein both the top and bottom line missed the Zacks Consensus Estimate. Despite such weak results, we are impressed with the company’s efforts 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. The company continues to experience strong smartphone demand at its wireless wing – U.S. Cellular. Over the past three months, the stock price grew 7.93%, beating its industry's growth of 4.18%. 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.”
Separately, BidaskClub cut Telephone and Data Systems from a buy rating to a hold rating in a report on Thursday, June 22nd. Four investment analysts have rated the stock with a hold rating and one has given a buy rating to the stock. The company has an average rating of Hold and an average target price of $35.00.
Telephone and Data Systems (NYSE:TDS) traded up 0.53% on Tuesday, hitting $28.66. 173,797 shares of the company traded hands. The firm has a market capitalization of $3.17 billion, a PE ratio of 58.61 and a beta of 1.04. Telephone and Data Systems has a 1-year low of $24.12 and a 1-year high of $32.98. The firm’s 50 day moving average price is $28.18 and its 200 day moving average price is $27.89.
Telephone and Data Systems (NYSE:TDS) last posted its quarterly earnings results on Friday, August 4th. The Wireless communications provider reported $0.09 EPS for the quarter, missing the Zacks’ consensus estimate of $0.13 by $0.04. Telephone and Data Systems had a return on equity of 1.15% and a net margin of 1.09%. The business had revenue of $1.25 billion during the quarter, compared to analysts’ expectations of $1.27 billion. During the same period in the prior year, the firm posted $0.25 earnings per share. The firm’s revenue for the quarter was down 3.7% on a year-over-year basis. Equities research analysts predict that Telephone and Data Systems will post $0.44 EPS for the current fiscal year.
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A number of hedge funds and other institutional investors have recently bought and sold shares of TDS. Zurcher Kantonalbank Zurich Cantonalbank boosted its position in Telephone and Data Systems by 11.4% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 3,795 shares of the Wireless communications provider’s stock worth $105,000 after buying an additional 387 shares in the last quarter. Envestnet Asset Management Inc. boosted its position in Telephone and Data Systems by 2.1% in the first quarter. Envestnet Asset Management Inc. now owns 4,094 shares of the Wireless communications provider’s stock worth $108,000 after buying an additional 84 shares in the last quarter. Sei Investments Co. boosted its position in Telephone and Data Systems by 13.9% in the second quarter. Sei Investments Co. now owns 4,868 shares of the Wireless communications provider’s stock worth $135,000 after buying an additional 594 shares in the last quarter. LS Investment Advisors LLC boosted its position in Telephone and Data Systems by 20.0% in the second quarter. LS Investment Advisors LLC now owns 7,451 shares of the Wireless communications provider’s stock worth $207,000 after buying an additional 1,242 shares in the last quarter. Finally, Wedge Capital Management L L P NC acquired a new position in Telephone and Data Systems during the second quarter worth approximately $209,000. 80.55% of the stock is currently 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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