Telephone and Data Systems (NYSE:TDS) Stock Rating Lowered by Zacks Investment Research


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Zacks Investment Research lowered shares of Telephone and Data Systems (NYSE:TDS) from a strong-buy rating to a hold rating in a research note issued to investors on Monday morning, Zacks.com reports. They currently have $21.00 price objective on the Wireless communications provider’s stock.

According to Zacks, “Telephone and Data Systems is diversifying its business model from telecom services provider to fiber network operator. The company aims to generate higher revenues with fiber deployment in out-of-territory expansion markets and roll out 5G services across the country. Incremental demand for faster broadband speeds generates higher wireline residential revenue per connection in prepaid and postpaid services. However, volatile pricing and intense competition from low-cost mobile operators dent its profitability and lower its growth prospects to some extent. Increasing costs associated with network integration and construction of new cell sites, aggressive equipment pricing, increasing capacity in existing cell sites, wireless technology upgrades and spectrum licensing also put considerable pressure on its operating performance.”

Other analysts have also issued research reports about the company. ValuEngine upgraded Telephone and Data Systems from a strong sell rating to a sell rating in a report on Thursday, December 3rd. BidaskClub lowered Telephone and Data Systems from a sell rating to a strong sell rating in a report on Tuesday, December 8th. Raymond James boosted their price target on Telephone and Data Systems from $32.00 to $34.00 and gave the company a strong-buy rating in a report on Monday, November 9th. Finally, B. Riley lowered their price target on Telephone and Data Systems from $27.00 to $25.00 and set a buy rating for the company in a report on Tuesday, November 3rd. Two analysts have rated the stock with a sell rating, one has assigned a hold rating, four have issued a buy rating and one has given a strong buy rating to the company. The stock currently has a consensus rating of Buy and an average price target of $29.92.

Shares of NYSE:TDS opened at $18.98 on Monday. Telephone and Data Systems has a 1 year low of $14.05 and a 1 year high of $25.64. The business has a 50 day simple moving average of $18.86 and a two-hundred day simple moving average of $19.70. The firm has a market capitalization of $4.06 billion, a PE ratio of 13.56 and a beta of 1.22. The company has a debt-to-equity ratio of 0.45, a current ratio of 2.37 and a quick ratio of 2.19.

Telephone and Data Systems (NYSE:TDS) last announced its quarterly earnings results on Tuesday, November 10th. The Wireless communications provider reported $0.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.26 by $0.40. The firm had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.29 billion. Telephone and Data Systems had a return on equity of 3.02% and a net margin of 3.17%. Telephone and Data Systems’s quarterly revenue was up .2% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.15 earnings per share. Equities research analysts expect that Telephone and Data Systems will post 1.5 EPS for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, December 30th. Investors of record on Wednesday, December 16th were paid a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a yield of 3.58%. The ex-dividend date of this dividend was Tuesday, December 15th. Telephone and Data Systems’s dividend payout ratio (DPR) is 66.02%.

Several institutional investors have recently bought and sold shares of TDS. State of Michigan Retirement System raised its stake in Telephone and Data Systems by 2.0% in the third quarter. State of Michigan Retirement System now owns 36,274 shares of the Wireless communications provider’s stock valued at $669,000 after buying an additional 700 shares during the last quarter. Circle Wealth Management LLC grew its stake in shares of Telephone and Data Systems by 3.5% during the third quarter. Circle Wealth Management LLC now owns 20,500 shares of the Wireless communications provider’s stock worth $378,000 after acquiring an additional 700 shares during the last quarter. M&G Investment Management Ltd. grew its stake in shares of Telephone and Data Systems by 1.0% during the third quarter. M&G Investment Management Ltd. now owns 81,808 shares of the Wireless communications provider’s stock worth $1,473,000 after acquiring an additional 842 shares during the last quarter. GABELLI & Co INVESTMENT ADVISERS INC. grew its stake in shares of Telephone and Data Systems by 5.5% during the third quarter. GABELLI & Co INVESTMENT ADVISERS INC. now owns 19,100 shares of the Wireless communications provider’s stock worth $352,000 after acquiring an additional 1,000 shares during the last quarter. Finally, Palisade Capital Management LLC NJ grew its stake in shares of Telephone and Data Systems by 10.0% during the third quarter. Palisade Capital Management LLC NJ now owns 11,000 shares of the Wireless communications provider’s stock worth $203,000 after acquiring an additional 1,000 shares during the last quarter. 79.93% of the stock is owned by hedge funds and other institutional investors.

About Telephone and Data Systems

Telephone and Data Systems, Inc, a telecommunications company, provides communications services in the United States. It operates through three segments: U.S. Cellular, Wireline, and Cable. The company offers cellular services to postpaid and prepaid customers, including retail consumers, government entities, and business customers located in its service territories; national plans with voice, messaging, and data usage options; and advanced wireless solutions, such as machine-to-machine solution and software applications for various categories of monitor and control, business automation/operations, communication, and asset management.

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