Telephone and Data Systems (NYSE:TDS) Shares Gap Up – Still a Buy?

Telephone and Data Systems, Inc. (NYSE:TDS)’s share price gapped up before the market opened on Friday . The stock had previously closed at $25.26, but opened at $26.46. Telephone and Data Systems shares last traded at $28.80, with a volume of 417,584 shares.

Telephone and Data Systems Stock Performance

The firm has a market capitalization of $3.29 billion, a PE ratio of -5.99 and a beta of 0.81. The company has a quick ratio of 1.37, a current ratio of 1.51 and a debt-to-equity ratio of 0.84. The company has a 50-day moving average of $23.02 and a 200 day moving average of $20.42.

Telephone and Data Systems (NYSE:TDS) last posted its quarterly earnings data on Friday, August 2nd. The Wireless communications provider reported ($0.13) earnings per share for the quarter, hitting the consensus estimate of ($0.13). The company had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.24 billion. Telephone and Data Systems had a negative net margin of 9.31% and a positive return on equity of 0.73%. Telephone and Data Systems’s revenue for the quarter was down 2.3% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.17) earnings per share. Equities research analysts predict that Telephone and Data Systems, Inc. will post -0.44 EPS for the current year.

Telephone and Data Systems Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 30th. Stockholders of record on Monday, September 16th were given a dividend of $0.04 per share. This represents a $0.16 annualized dividend and a dividend yield of 0.55%. The ex-dividend date was Monday, September 16th. Telephone and Data Systems’s dividend payout ratio (DPR) is currently -3.29%.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its position in Telephone and Data Systems by 4.8% in the 4th quarter. Vanguard Group Inc. now owns 12,248,615 shares of the Wireless communications provider’s stock worth $224,762,000 after buying an additional 565,371 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Telephone and Data Systems by 9.2% in the 2nd quarter. Dimensional Fund Advisors LP now owns 6,018,541 shares of the Wireless communications provider’s stock worth $124,761,000 after acquiring an additional 507,512 shares during the last quarter. Millennium Management LLC lifted its holdings in shares of Telephone and Data Systems by 34.0% in the 2nd quarter. Millennium Management LLC now owns 1,950,298 shares of the Wireless communications provider’s stock worth $40,430,000 after acquiring an additional 495,189 shares during the last quarter. Point72 Asset Management L.P. purchased a new stake in shares of Telephone and Data Systems in the 2nd quarter valued at $7,680,000. Finally, American Century Companies Inc. grew its holdings in shares of Telephone and Data Systems by 8.4% during the 2nd quarter. American Century Companies Inc. now owns 2,655,980 shares of the Wireless communications provider’s stock valued at $55,058,000 after purchasing an additional 206,819 shares during the last quarter. Institutional investors own 80.00% of the company’s stock.

Telephone and Data Systems Company Profile

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.