Telephone and Data Systems (NYSE:TDS) Stock Price Up 9.7% Following Better-Than-Expected Earnings

Telephone and Data Systems, Inc. (NYSE:TDS) traded up 9.7% during mid-day trading on Monday following a stronger than expected earnings report. The stock traded as high as $15.96 and last traded at $15.75. 319,632 shares were traded during mid-day trading, a decline of 66% from the average session volume of 944,736 shares. The stock had previously closed at $14.36.

The Wireless communications provider reported $0.10 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.05) by $0.15. Telephone and Data Systems had a negative net margin of 9.36% and a positive return on equity of 0.62%. The company had revenue of $1.26 billion during the quarter, compared to analysts’ expectations of $1.26 billion. During the same period last year, the company posted ($0.08) earnings per share. The firm’s quarterly revenue was down 3.1% compared to the same quarter last year.

Telephone and Data Systems Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 28th. Investors of record on Friday, March 15th were issued a dividend of $0.19 per share. The ex-dividend date was Thursday, March 14th. This is a boost from Telephone and Data Systems’s previous quarterly dividend of $0.19. This represents a $0.76 annualized dividend and a yield of 4.94%. Telephone and Data Systems’s payout ratio is currently -15.61%.

Wall Street Analyst Weigh In

Separately, StockNews.com raised Telephone and Data Systems from a “sell” rating to a “hold” rating in a report on Monday.

Institutional Trading of Telephone and Data Systems

Institutional investors and hedge funds have recently modified their holdings of the business. Dimensional Fund Advisors LP raised its position in shares of Telephone and Data Systems by 19.3% during the 4th quarter. Dimensional Fund Advisors LP now owns 4,785,251 shares of the Wireless communications provider’s stock worth $87,810,000 after purchasing an additional 774,892 shares during the last quarter. Vanguard Group Inc. raised its holdings in shares of Telephone and Data Systems by 4.8% in the fourth quarter. Vanguard Group Inc. now owns 12,248,615 shares of the Wireless communications provider’s stock worth $224,762,000 after acquiring an additional 565,371 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. raised its holdings in shares of Telephone and Data Systems by 1,252.7% in the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 598,138 shares of the Wireless communications provider’s stock worth $10,952,000 after acquiring an additional 553,921 shares during the last quarter. Segantii Capital Management Ltd acquired a new position in Telephone and Data Systems in the 4th quarter valued at about $9,144,000. Finally, Norges Bank acquired a new position in Telephone and Data Systems in the 4th quarter valued at about $8,205,000. Hedge funds and other institutional investors own 80.00% of the company’s stock.

Telephone and Data Systems Stock Performance

The company has a market capitalization of $1.74 billion, a PE ratio of -3.16 and a beta of 0.81. The stock’s fifty day simple moving average is $15.64 and its 200-day simple moving average is $17.34. The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.40 and a current ratio of 1.58.

About Telephone and Data Systems

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.