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

Telephone and Data Systems, Inc. (NYSE:TDS)’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.

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

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.