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

Shares of Telephone and Data Systems, Inc. (NYSE:TDS) reached a new 52-week high during mid-day trading on Thursday . The stock traded as high as $43.36 and last traded at $43.3440, with a volume of 275964 shares changing hands. The stock had previously closed at $41.71.

Analyst Ratings Changes

A number of analysts have weighed in on the stock. Zacks Research cut shares of Telephone and Data Systems from a “strong-buy” rating to a “hold” rating in a report on Thursday, January 1st. Citigroup raised their target price on shares of Telephone and Data Systems from $45.00 to $51.00 and gave the stock a “buy” rating in a report on Wednesday. Weiss Ratings reiterated a “sell (d)” rating on shares of Telephone and Data Systems in a research report on Monday, December 29th. Finally, Wall Street Zen lowered Telephone and Data Systems from a “hold” rating to a “sell” rating in a research report on Saturday, November 15th. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $51.67.

Telephone and Data Systems Stock Up 2.2%

The company has a quick ratio of 1.88, a current ratio of 1.89 and a debt-to-equity ratio of 0.20. The stock’s 50 day moving average is $39.31 and its 200 day moving average is $38.72. The firm has a market cap of $4.79 billion, a price-to-earnings ratio of -38.53 and a beta of 0.32.

Telephone and Data Systems (NYSE:TDS) last released its earnings results on Friday, November 7th. The Wireless communications provider reported $0.07 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.06) by $0.13. Telephone and Data Systems had a positive return on equity of 1.15% and a negative net margin of 1.46%.The firm had revenue of $308.52 million for the quarter, compared to analyst estimates of $1.16 billion. During the same period in the previous year, the company earned ($0.73) earnings per share. Telephone and Data Systems’s revenue was down 5.8% compared to the same quarter last year. Analysts forecast that Telephone and Data Systems, Inc. will post -0.31 EPS for the current year.

Telephone and Data Systems Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Investors of record on Monday, December 15th were issued a $0.04 dividend. This represents a $0.16 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date was Monday, December 15th. Telephone and Data Systems’s payout ratio is presently -14.81%.

Insider Buying and Selling

In related news, CAO Anita J. Kroll sold 870 shares of the firm’s stock in a transaction that occurred on Tuesday, November 11th. The shares were sold at an average price of $39.16, for a total transaction of $34,069.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 14.97% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Telephone and Data Systems

Institutional investors and hedge funds have recently modified their holdings of the stock. Croban boosted its stake in Telephone and Data Systems by 0.7% in the third quarter. Croban now owns 37,088 shares of the Wireless communications provider’s stock worth $1,455,000 after purchasing an additional 263 shares in the last quarter. Amalgamated Bank increased its stake in shares of Telephone and Data Systems by 1.0% in the second quarter. Amalgamated Bank now owns 28,061 shares of the Wireless communications provider’s stock valued at $998,000 after buying an additional 270 shares in the last quarter. Bessemer Group Inc. raised its holdings in shares of Telephone and Data Systems by 65.6% in the third quarter. Bessemer Group Inc. now owns 699 shares of the Wireless communications provider’s stock valued at $28,000 after buying an additional 277 shares during the last quarter. Truist Financial Corp raised its holdings in shares of Telephone and Data Systems by 0.9% in the third quarter. Truist Financial Corp now owns 36,829 shares of the Wireless communications provider’s stock valued at $1,445,000 after buying an additional 316 shares during the last quarter. Finally, Nisa Investment Advisors LLC lifted its position in Telephone and Data Systems by 6.7% during the 3rd quarter. Nisa Investment Advisors LLC now owns 5,663 shares of the Wireless communications provider’s stock worth $222,000 after buying an additional 356 shares in the last quarter. Institutional investors and hedge funds own 80.00% of the company’s stock.

Telephone and Data Systems Company Profile

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.