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 Wednesday . The stock traded as high as $44.42 and last traded at $43.8020, with a volume of 131490 shares changing hands. The stock had previously closed at $42.61.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the stock. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Telephone and Data Systems in a research note on Monday, December 29th. Citigroup boosted their price objective on shares of Telephone and Data Systems from $45.00 to $51.00 and gave the company a “buy” rating in a research report on Wednesday, January 7th. Zacks Research downgraded Telephone and Data Systems from a “strong-buy” rating to a “hold” rating in a research note on Thursday, January 1st. Finally, Wall Street Zen downgraded shares of Telephone and Data Systems from a “hold” rating to a “sell” rating in a report on Saturday, November 15th. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Telephone and Data Systems presently has a consensus rating of “Hold” and a consensus price target of $51.67.

Telephone and Data Systems Stock Performance

The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.88 and a current ratio of 1.89. The firm has a market cap of $5.04 billion, a P/E ratio of -40.55 and a beta of 0.32. The firm’s fifty day moving average price is $39.43 and its 200 day moving average price is $38.88.

Telephone and Data Systems (NYSE:TDS) last released its quarterly earnings results on Friday, November 7th. The Wireless communications provider reported $0.07 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.06) by $0.13. Telephone and Data Systems had a negative net margin of 1.46% and a positive return on equity of 1.15%. The business 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. The business’s revenue for the quarter was down 5.8% on a year-over-year basis. Sell-side analysts expect that Telephone and Data Systems, Inc. will post -0.31 EPS for the current fiscal year.

Telephone and Data Systems Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, December 30th. Shareholders of record on Monday, December 15th were issued a $0.04 dividend. The ex-dividend date of this dividend was Monday, December 15th. This represents a $0.16 dividend on an annualized basis and a dividend yield of 0.4%. Telephone and Data Systems’s dividend payout ratio (DPR) is currently -14.81%.

Insider Activity at Telephone and Data Systems

In other 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 SEC, which is accessible through this hyperlink. 14.48% of the stock is owned by company insiders.

Hedge Funds Weigh In On Telephone and Data Systems

Several large investors have recently made changes to their positions in the stock. Exchange Traded Concepts LLC purchased a new stake in shares of Telephone and Data Systems in the 4th quarter valued at $173,000. Congress Asset Management Co. boosted its stake in Telephone and Data Systems by 3.7% in the fourth quarter. Congress Asset Management Co. now owns 228,115 shares of the Wireless communications provider’s stock valued at $9,353,000 after acquiring an additional 8,224 shares in the last quarter. SG Americas Securities LLC grew its position in shares of Telephone and Data Systems by 343.6% during the fourth quarter. SG Americas Securities LLC now owns 39,597 shares of the Wireless communications provider’s stock worth $1,623,000 after acquiring an additional 30,670 shares during the last quarter. Assenagon Asset Management S.A. increased its stake in Telephone and Data Systems by 208.7% in the fourth quarter. Assenagon Asset Management S.A. now owns 301,529 shares of the Wireless communications provider’s stock valued at $12,363,000 after purchasing an additional 203,856 shares during the period. Finally, Hudson Bay Capital Management LP grew its stake in shares of Telephone and Data Systems by 50.0% in the 3rd quarter. Hudson Bay Capital Management LP now owns 750,000 shares of the Wireless communications provider’s stock valued at $29,430,000 after purchasing an additional 250,000 shares during the last quarter. 80.00% of the stock is currently owned by institutional investors and hedge funds.

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.