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

According to Zacks, “Telephone and Data Systems posted weak third-quarter 2017 results. Despite such results, the company is looking for lucrative opportunities to bring more fiber in order to better address services. 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 underperformed its industry. 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.”

A number of other equities research analysts also recently issued reports on TDS. Drexel Hamilton raised shares of Telephone and Data Systems from a “hold” rating to a “buy” rating in a report on Thursday, November 9th. BidaskClub raised shares of Telephone and Data Systems from a “sell” rating to a “hold” rating in a report on Tuesday, July 25th. Four analysts have rated the stock with a hold rating and one has issued a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and an average target price of $29.00.

Shares of Telephone and Data Systems (TDS) traded up $0.01 during trading on Wednesday, hitting $25.23. 654,800 shares of the stock were exchanged, compared to its average volume of 692,931. Telephone and Data Systems has a 52-week low of $24.57 and a 52-week high of $32.97. The stock has a market capitalization of $2,789.71, a P/E ratio of 56.04, a price-to-earnings-growth ratio of 9.61 and a beta of 1.02. The company has a debt-to-equity ratio of 0.54, a quick ratio of 2.29 and a current ratio of 2.42.

Telephone and Data Systems (NYSE:TDS) last announced its quarterly earnings results on Wednesday, November 8th. The Wireless communications provider reported $0.08 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.17 by ($0.09). Telephone and Data Systems had a positive return on equity of 1.08% and a negative net margin of 2.77%. The firm had revenue of $1.25 billion during the quarter, compared to analysts’ expectations of $1.26 billion. During the same period in the previous year, the company posted $0.11 earnings per share. The company’s quarterly revenue was down 4.8% compared to the same quarter last year. equities research analysts expect that Telephone and Data Systems will post 0.53 EPS for the current year.

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Hedge funds have recently bought and sold shares of the stock. Bank of Montreal Can increased its position in shares of Telephone and Data Systems by 14.9% in the first quarter. Bank of Montreal Can now owns 8,413 shares of the Wireless communications provider’s stock worth $223,000 after purchasing an additional 1,091 shares during the last quarter. Prudential Financial Inc. grew its position in Telephone and Data Systems by 24.6% during the second quarter. Prudential Financial Inc. now owns 1,007,313 shares of the Wireless communications provider’s stock valued at $27,953,000 after acquiring an additional 199,030 shares during the last quarter. Acadian Asset Management bought a new position in Telephone and Data Systems during the fourth quarter valued at approximately $1,167,000. Cornerstone Capital Management Holdings LLC. grew its position in Telephone and Data Systems by 10.4% during the fourth quarter. Cornerstone Capital Management Holdings LLC. now owns 539,777 shares of the Wireless communications provider’s stock valued at $13,975,000 after acquiring an additional 50,734 shares during the last quarter. Finally, Eidelman Virant Capital grew its position in Telephone and Data Systems by 9.4% during the fourth quarter. Eidelman Virant Capital now owns 354,350 shares of the Wireless communications provider’s stock valued at $9,174,000 after acquiring an additional 30,400 shares during the last quarter. Institutional investors own 82.27% of the company’s stock.

About Telephone and Data Systems

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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