Telephone and Data Systems (NYSE:TDS) Shares Gap Up – Here’s Why

Telephone and Data Systems, Inc. (NYSE:TDS) 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 traded.

Telephone and Data Systems Trading Up 15.4 %

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 firm has a market cap of $3.29 billion, a P/E ratio of -5.99 and a beta of 0.81. The firm’s 50-day simple moving average is $23.02 and its 200 day simple moving average is $20.42.

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

Telephone and Data Systems Dividend Announcement

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

Institutional Investors Weigh In On Telephone and Data Systems

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TDS. Blue Trust Inc. boosted its position in Telephone and Data Systems by 4,082.9% during the second quarter. Blue Trust Inc. now owns 1,715 shares of the Wireless communications provider’s stock worth $36,000 after purchasing an additional 1,674 shares during the period. Quarry LP purchased a new position in Telephone and Data Systems in the 2nd quarter valued at approximately $40,000. CWM LLC raised its holdings in Telephone and Data Systems by 57.0% during the 2nd quarter. CWM LLC now owns 3,939 shares of the Wireless communications provider’s stock valued at $82,000 after acquiring an additional 1,430 shares during the period. Neo Ivy Capital Management purchased a new stake in shares of Telephone and Data Systems during the second quarter worth $88,000. Finally, Natixis bought a new position in shares of Telephone and Data Systems in the first quarter worth $96,000. 80.00% of the stock is currently owned by institutional investors.

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.