Telephone and Data Systems (NYSE:TDS) Shares Gap Up Following Earnings Beat

Telephone and Data Systems, Inc. (NYSE:TDSGet Rating)’s stock price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $15.30, but opened at $15.99. Telephone and Data Systems shares last traded at $15.95, with a volume of 11,663 shares trading hands.

The Wireless communications provider reported $0.15 EPS for the quarter, beating analysts’ consensus estimates of $0.04 by $0.11. Telephone and Data Systems had a net margin of 2.99% and a return on equity of 2.81%. During the same period in the previous year, the business posted $0.17 EPS.

Telephone and Data Systems Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, June 30th. Shareholders of record on Wednesday, June 15th were paid a dividend of $0.18 per share. The ex-dividend date was Tuesday, June 14th. This represents a $0.72 annualized dividend and a dividend yield of 4.46%. Telephone and Data Systems’s dividend payout ratio is currently 80.90%.

Wall Street Analysts Forecast Growth

Separately, Morgan Stanley cut shares of Telephone and Data Systems from an “overweight” rating to an “equal weight” rating and set a $22.00 price target on the stock. in a research note on Tuesday, April 19th.

Insiders Place Their Bets

In related news, Director Clarence A. Davis sold 4,300 shares of the firm’s stock in a transaction that occurred on Wednesday, May 25th. The shares were sold at an average price of $18.33, for a total value of $78,819.00. Following the sale, the director now directly owns 15,511 shares of the company’s stock, valued at $284,316.63. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 14.08% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Telephone and Data Systems

Hedge funds have recently modified their holdings of the stock. First Quadrant LLC CA acquired a new stake in shares of Telephone and Data Systems in the first quarter worth approximately $36,000. Column Capital Advisors LLC acquired a new stake in shares of Telephone and Data Systems in the fourth quarter worth approximately $40,000. First Horizon Advisors Inc. purchased a new position in Telephone and Data Systems in the second quarter valued at approximately $31,000. Covestor Ltd purchased a new position in Telephone and Data Systems in the fourth quarter valued at approximately $51,000. Finally, Creative Financial Designs Inc. ADV raised its holdings in Telephone and Data Systems by 239.6% in the first quarter. Creative Financial Designs Inc. ADV now owns 3,090 shares of the Wireless communications provider’s stock valued at $58,000 after buying an additional 2,180 shares during the period. 86.34% of the stock is owned by institutional investors and hedge funds.

Telephone and Data Systems Price Performance

The company’s fifty day moving average is $15.86 and its 200 day moving average is $17.89. The company has a quick ratio of 1.70, a current ratio of 1.87 and a debt-to-equity ratio of 0.63. The stock has a market cap of $1.85 billion, a PE ratio of 18.15 and a beta of 1.02.

About Telephone and Data Systems

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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, routers, 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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