Telephone and Data Systems (NYSE:TDS) Shares Break Below Fifty Day Moving Average – Should You Sell?

Telephone and Data Systems, Inc. (NYSE:TDS)’s share price passed below its 50-day moving average during trading on Wednesday. The stock has a 50-day moving average of $35.22 and traded as low as $33.55. Telephone and Data Systems shares last traded at $34.4910, with a volume of 1,717,319 shares changing hands.

Analysts Set New Price Targets

A number of analysts recently commented on TDS shares. Zacks Research lowered Telephone and Data Systems from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, September 9th. Citigroup cut their target price on shares of Telephone and Data Systems from $50.00 to $47.00 and set a “buy” rating on the stock in a research report on Thursday, August 13th. JPMorgan Chase & Co. reduced their target price on shares of Telephone and Data Systems from $51.00 to $48.00 and set an “overweight” rating on the stock in a research note on Wednesday, August 19th. Finally, Weiss Ratings lowered shares of Telephone and Data Systems from a “hold (c+)” rating to a “hold (c)” rating in a research note on Thursday, October 8th. Two equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Telephone and Data Systems currently has a consensus rating of “Hold” and an average price target of $47.50.

Telephone and Data Systems Trading Down 3.4%

The company has a market capitalization of $3.97 billion, a P/E ratio of 11.50 and a beta of 0.32. The company has a debt-to-equity ratio of 0.15, a current ratio of 3.82 and a quick ratio of 3.81. The business’s 50-day moving average price is $35.22 and its two-hundred day moving average price is $39.66.

Telephone and Data Systems (NYSE:TDS) last released its quarterly earnings data on Friday, August 7th. The Wireless communications provider reported $2.24 EPS for the quarter, beating analysts’ consensus estimates of $0.09 by $2.15. The business had revenue of $309.28 million during the quarter, compared to analysts’ expectations of $315.78 million. Telephone and Data Systems had a net margin of 33.20% and a return on equity of 11.97%. The firm’s quarterly revenue was up 3.6% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.05) EPS. As a group, analysts forecast that Telephone and Data Systems, Inc. will post -0.24 EPS for the current fiscal year.

Telephone and Data Systems Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were paid a $0.04 dividend. This represents a $0.16 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend was Tuesday, September 15th. Telephone and Data Systems’s payout ratio is presently 5.33%.

Institutional Investors Weigh In On Telephone and Data Systems

Large investors have recently modified their holdings of the business. Knighthead Capital Management LLC bought a new position in shares of Telephone and Data Systems during the 1st quarter valued at about $18,764,000. Carronade Capital Management LP grew its position in shares of Telephone and Data Systems by 10.0% in the 1st quarter. Carronade Capital Management LP now owns 4,623,934 shares of the Wireless communications provider’s stock valued at $194,668,000 after purchasing an additional 420,340 shares during the period. Three Seasons Wealth LLC bought a new stake in Telephone and Data Systems during the 2nd quarter worth approximately $1,433,000. Rokos Capital Management LLP bought a new stake in Telephone and Data Systems during the 1st quarter worth approximately $21,040,000. Finally, Dimensional Fund Advisors LP raised its holdings in Telephone and Data Systems by 1.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 6,482,147 shares of the Wireless communications provider’s stock worth $272,898,000 after buying an additional 90,097 shares during the period. 80.00% of the stock is currently owned by institutional investors.

Telephone and Data Systems Company Profile

Telephone and Data Systems, Inc (NYSE:TDS) is a telecommunications holding company that provides broadband and communications services in communities across the United States. Its principal operating business is TDS Telecom, which serves residential, business and wholesale customers with internet access, fiber-optic and other broadband connections, voice services, video entertainment and related communications solutions.

TDS Telecom focuses on expanding high-speed broadband availability in rural and suburban markets.