Telephone and Data Systems (NYSE:TDS) Trading 6.9% Higher – Still a Buy?

Telephone and Data Systems, Inc. (NYSE:TDS)’s stock price traded up 6.9% during mid-day trading on Wednesday . The company traded as high as $36.13 and last traded at $35.9340. 265,494 shares changed hands during trading, a decline of 74% from the average daily volume of 1,013,081 shares. The stock had previously closed at $33.62.

Analysts Set New Price Targets

TDS has been the topic of several recent analyst reports. Weiss Ratings raised shares of Telephone and Data Systems from a “hold (c-)” rating to a “hold (c+)” rating in a report on Tuesday, August 11th. Citigroup lowered their price objective on Telephone and Data Systems from $50.00 to $47.00 and set a “buy” rating for the company in a research note on Thursday, August 13th. Raymond James Financial downgraded Telephone and Data Systems from an “outperform” rating to a “market perform” rating in a report on Monday, May 11th. Wall Street Zen upgraded shares of Telephone and Data Systems from a “sell” rating to a “hold” rating in a report on Saturday, May 30th. Finally, Zacks Research raised Telephone and Data Systems from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, Telephone and Data Systems currently has a consensus rating of “Moderate Buy” and a consensus target price of $47.50.

Telephone and Data Systems Price Performance

The firm has a market cap of $4.36 billion, a price-to-earnings ratio of 12.63 and a beta of 0.33. The company has a debt-to-equity ratio of 0.15, a quick ratio of 3.81 and a current ratio of 3.82. The business has a 50 day simple moving average of $34.61 and a 200-day simple moving average of $39.93.

Telephone and Data Systems (NYSE:TDS) last announced its earnings results on Friday, August 7th. The Wireless communications provider reported $2.24 earnings per share for the quarter, topping analysts’ consensus estimates of $0.09 by $2.15. Telephone and Data Systems had a return on equity of 11.97% and a net margin of 33.20%.The firm had revenue of $309.28 million for the quarter, compared to the consensus estimate of $315.78 million. During the same quarter in the previous year, the business earned ($0.05) EPS. The company’s revenue was up 3.6% compared to the same quarter last year. Equities research analysts expect that Telephone and Data Systems, Inc. will post -0.24 earnings per share for the current year.

Telephone and Data Systems Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be paid a $0.04 dividend. This represents a $0.16 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date is Tuesday, September 15th. Telephone and Data Systems’s payout ratio is currently 5.33%.

Institutional Investors Weigh In On Telephone and Data Systems

Institutional investors have recently made changes to their positions in the stock. JPL Wealth Management LLC purchased a new stake in Telephone and Data Systems during the 3rd quarter worth about $33,000. Caitong International Asset Management Co. Ltd increased its position in shares of Telephone and Data Systems by 2,779.5% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,123 shares of the Wireless communications provider’s stock valued at $46,000 after buying an additional 1,084 shares during the period. EverSource Wealth Advisors LLC lifted its holdings in shares of 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 buying an additional 245 shares in the last quarter. TD Waterhouse Canada Inc. lifted its stake in Telephone and Data Systems by 446.9% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 1,340 shares of the Wireless communications provider’s stock worth $50,000 after purchasing an additional 1,095 shares in the last quarter. Finally, Nykredit A S bought a new stake in Telephone and Data Systems during the second quarter valued at $59,000. Hedge funds and other institutional investors own 80.00% of the company’s stock.

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.