Telephone and Data Systems, Inc. (NYSE:TDS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday.

According to Zacks, “Telephone and Data Systems is looking for lucrative opportunities to bring more fiber in order to better address services, both in its current footprint and adjacent areas. By leveraging on fiber, the telco is trying to respond to customers' growing TV and broadband service demand. The company continues to expand its business in the managed hosting and cloud service market. Launch of Shared Data plans at nominal prices should help the company gain consumers. The company's IPTV is also doing considerably well. It continues to experience strong smartphone demand at its wireless wing, U.S. Cellular. Over the past three months, the stock price grew 0.8% while the industry lost 1.2% in the same time period. However, intense competition, roaming revenues related woes, costs associated with network integration and construction of new cell sites, aggressive equipment pricing, wireless technology upgrades and spectrum licensing are other risks.”

Separately, BidaskClub cut shares of Telephone and Data Systems from a “hold” rating to a “sell” rating in a research note on Sunday, July 16th. Five analysts have rated the stock with a hold rating, Telephone and Data Systems has an average rating of “Hold” and an average target price of $32.00.

Shares of Telephone and Data Systems (NYSE:TDS) traded up 0.18% during trading on Tuesday, reaching $28.31. 114,509 shares of the company traded hands. The firm’s 50-day moving average is $28.01 and its 200-day moving average is $27.99. Telephone and Data Systems has a 12-month low of $24.12 and a 12-month high of $32.97. The stock has a market capitalization of $3.13 billion, a PE ratio of 57.89 and a beta of 1.02.

Telephone and Data Systems (NYSE:TDS) last released its quarterly earnings results on Friday, August 4th. The Wireless communications provider reported $0.09 EPS for the quarter, missing the Zacks’ consensus estimate of $0.13 by ($0.04). Telephone and Data Systems had a return on equity of 1.15% and a net margin of 1.09%. The company had revenue of $1.25 billion during the quarter, compared to analysts’ expectations of $1.27 billion. During the same period in the prior year, the firm earned $0.25 EPS. Telephone and Data Systems’s quarterly revenue was down 3.7% on a year-over-year basis. On average, equities analysts predict that Telephone and Data Systems will post $0.45 earnings per share for the current fiscal year.

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Several institutional investors have recently made changes to their positions in TDS. Banced Corp boosted its stake in shares of Telephone and Data Systems by 25.7% in the 4th quarter. Banced Corp now owns 14,830 shares of the Wireless communications provider’s stock valued at $384,000 after purchasing an additional 3,030 shares in the last quarter. Acadian Asset Management purchased a new stake in shares of Telephone and Data Systems in the 4th quarter valued at $1,167,000. Russell Frank Co boosted its stake in shares of Telephone and Data Systems by 7.7% in the 4th quarter. Russell Frank Co now owns 228,565 shares of the Wireless communications provider’s stock valued at $5,998,000 after purchasing an additional 16,274 shares in the last quarter. Gargoyle Investment Advisor L.L.C. boosted its stake in shares of Telephone and Data Systems by 4.7% in the 4th quarter. Gargoyle Investment Advisor L.L.C. now owns 123,203 shares of the Wireless communications provider’s stock valued at $3,189,000 after purchasing an additional 5,551 shares in the last quarter. Finally, State Board of Administration of Florida Retirement System boosted its stake in shares of Telephone and Data Systems by 0.5% in the 4th quarter. State Board of Administration of Florida Retirement System now owns 146,948 shares of the Wireless communications provider’s stock valued at $3,804,000 after purchasing an additional 737 shares in the last quarter. 82.47% of the stock is owned by institutional investors.

Telephone and Data Systems Company Profile

Telephone and Data Systems, Inc is a diversified telecommunications company. The Company is engaged in conducting its Wireless operations through its subsidiary, United States Cellular Corporation (U.S. Cellular), as well as providing its wireline services, cable services, and hosted and managed services (HMS), through its subsidiary, TDS Telecommunications Corporation (TDS Telecom).

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