Telephone and Data Systems (NYSE:TDS) Stock Price Up 9.7% Following Strong Earnings

Telephone and Data Systems, Inc. (NYSE:TDS) shares shot up 9.7% during mid-day trading on Monday following a better than expected earnings announcement. The company traded as high as $15.96 and last traded at $15.75. 319,632 shares changed hands 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 EPS for the quarter, topping the consensus estimate 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 the consensus estimate of $1.26 billion. During the same period last year, the firm earned ($0.08) EPS. Telephone and Data Systems’s revenue for the quarter was down 3.1% on a year-over-year basis.

Telephone and Data Systems Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, March 28th. Shareholders of record on Friday, March 15th were paid a $0.19 dividend. This is a positive change from Telephone and Data Systems’s previous quarterly dividend of $0.19. This represents a $0.76 dividend on an annualized basis and a yield of 4.84%. The ex-dividend date of this dividend was Thursday, March 14th. Telephone and Data Systems’s dividend payout ratio is currently -15.61%.

Analyst Upgrades and Downgrades

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

Institutional Trading of Telephone and Data Systems

Large investors have recently added to or reduced their stakes in the stock. Principal Securities Inc. bought a new position in shares of Telephone and Data Systems during the fourth quarter valued at $25,000. Anchor Investment Management LLC bought a new stake in shares of Telephone and Data Systems in the fourth quarter worth approximately $46,000. Quarry LP purchased a new position in shares of Telephone and Data Systems during the fourth quarter valued at approximately $60,000. GAMMA Investing LLC bought a new position in Telephone and Data Systems during the fourth quarter valued at approximately $93,000. Finally, Quadrant Capital Group LLC grew its position in Telephone and Data Systems by 14.0% in the 4th quarter. Quadrant Capital Group LLC now owns 5,062 shares of the Wireless communications provider’s stock worth $93,000 after purchasing an additional 622 shares during the period. Institutional investors own 80.00% of the company’s stock.

Telephone and Data Systems Price Performance

The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.40 and a current ratio of 1.58. The stock has a market capitalization of $1.77 billion, a P/E ratio of -3.22 and a beta of 0.81. The firm has a fifty day moving average price of $15.63 and a two-hundred day moving average price of $17.35.

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.