Telephone and Data Systems (NYSE:TDS) Stock Price Down 6.1% Following Weak Earnings

Telephone and Data Systems, Inc. (NYSE:TDSGet Free Report)’s stock price traded down 6.1% on Monday following a weaker than expected earnings announcement. The stock traded as low as $32.20 and last traded at $32.21. 783,559 shares were traded during mid-day trading, a decline of 28% from the average session volume of 1,092,453 shares. The stock had previously closed at $34.31.

The Wireless communications provider reported ($0.09) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.02) by ($0.07). The company had revenue of $1.15 billion during the quarter, compared to analyst estimates of $1.18 billion. Telephone and Data Systems had a positive return on equity of 1.12% and a negative net margin of 10.72%. The business’s revenue for the quarter was down 8.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.10 earnings per share.

Telephone and Data Systems Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 31st. Shareholders of record on Monday, March 17th were issued a $0.04 dividend. The ex-dividend date was Monday, March 17th. This represents a $0.16 annualized dividend and a yield of 0.47%. Telephone and Data Systems’s dividend payout ratio (DPR) is -15.24%.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on TDS. JPMorgan Chase & Co. lifted their price objective on Telephone and Data Systems from $53.00 to $56.00 and gave the stock an “overweight” rating in a report on Monday, February 24th. Raymond James reiterated an “outperform” rating and set a $47.00 price target (down previously from $51.00) on shares of Telephone and Data Systems in a research note on Monday.

Get Our Latest Stock Analysis on Telephone and Data Systems

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. World Investment Advisors LLC acquired a new position in shares of Telephone and Data Systems in the 3rd quarter worth approximately $294,000. Franklin Resources Inc. raised its stake in Telephone and Data Systems by 2.5% during the third quarter. Franklin Resources Inc. now owns 78,508 shares of the Wireless communications provider’s stock worth $1,855,000 after acquiring an additional 1,938 shares in the last quarter. GAMMA Investing LLC raised its stake in Telephone and Data Systems by 8.3% during the fourth quarter. GAMMA Investing LLC now owns 5,742 shares of the Wireless communications provider’s stock worth $196,000 after acquiring an additional 440 shares in the last quarter. CWA Asset Management Group LLC bought a new position in shares of Telephone and Data Systems during the fourth quarter valued at $710,000. Finally, Diversified Trust Co boosted its stake in shares of Telephone and Data Systems by 11.7% in the 4th quarter. Diversified Trust Co now owns 35,499 shares of the Wireless communications provider’s stock valued at $1,211,000 after purchasing an additional 3,729 shares in the last quarter. Institutional investors own 80.00% of the company’s stock.

Telephone and Data Systems Trading Up 7.3 %

The firm has a market cap of $3.88 billion, a P/E ratio of -6.31 and a beta of 0.57. The company’s fifty day moving average price is $36.07 and its two-hundred day moving average price is $34.70. The company has a current ratio of 1.59, a quick ratio of 1.44 and a debt-to-equity ratio of 0.85.

Telephone and Data Systems Company Profile

(Get Free Report)

Telephone and Data Systems, Inc, a telecommunications company, provides communications services in the United States. It operates through two segments: UScellular and TDS Telecom. The company offers wireless solutions to consumers, and business and government customers, including a suite of connected Internet of things (IoT) solutions, and software applications for monitor and control, business automation/operations, communication, fleet and asset management, smart water solutions, private cellular networks and custom, and end-to-end IoT solutions; wireless priority services and quality priority and preemption options; smartphones and other handsets, tablets, wearables, mobile hotspots, fixed wireless home internet, and IoT devices; and accessories, such as cases, screen protectors, chargers, and memory cards, as well as consumer electronics, including audio, home automation and networking products.

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