Telephone and Data Systems, Inc. (NYSE:TDS) has been downgraded by JP Morgan on July 11 which now rates the stock as Underweight compared with Neutral rating suggested in the past. Analysts at Raymond James, shed their negative views on May 02 by lifting it fromMkt Perform to Outperform. The stock lost favor of Raymond James analysts who expressed their lack of confidence in it using a downgrade from Strong Buy to Mkt Perform on February 27.
Telephone and Data Systems, Inc. (TDS) hit an intraday high Thursday at $36.4. The shares finished at $36.22, after trading as low as $35.18 earlier in the session. It rose 1.91% in recent trade and currently has a stock-market value of $3.85B. Trading activity significantly improved as the volume at ready counter increased to 3,839,288 shares versus 957,390 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 961,771 shares. The stock is now 53.87% above against its bear-market low of $23.54 on February 09, 2018. It has retreated -2.95% since it’s 52-week high of $37.29 reached in January. Now the market price is up 30.81% on the year and up 11.31% YTD.
TDS’s 50 day simple moving average (SMA 50) price is $34.82 and its 200-day simple moving average (SMA 200) price is $30.32. The company’s stock currently has a total float of 105.36M shares. Its weekly volatility is hovering around 2.64% and felt 2.49% volatility in price over a month. On the upside, the share price will test short term resistance at around $36.69. On a downside, the stock is likely to find some support, which begins at $35.47. The failure to get near-term support could push it to $34.71.
Separately, it has been reported that multiple insider activity took place at Telephone and Data Systems, Inc. (TDS). Director Davis Clarence A sold 250 shares for $9,150 in transaction occurred on 2018/12/06. After making this transaction, the Director owns a direct stake of 8,753 shares, worth $331,413, as per the last closing price. On 2018/11/28 Butman James W, President & CEO of subsidiary at TDS, dumped 42,826 shares at an average price of $35.91 per share. The selling total is valued at $597,521.
Senior VP – CIO, Thaus Kurt B had divested 129,656 shares through a trade on 2018/11/28. Following this activity, the insider holds 4,583,340 shares. Wall Street’s most bullish Telephone and Data Systems, Inc. (NYSE:TDS) analysts are predicting the share price to blow past $49 per share during the next 12 months. The current median share price forecast by them is $36, suggesting that the stock could increase -0.61% in that time frame. The average price target of $38.4 calls for a nearly 6.02% increase in the stock price.
When looking at valuations, Telephone and Data Systems, Inc. (TDS) has a cheap P/E of 52.27x as compared to industry average of 55.32x. Moreover, it trades for 25.74 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 0.89x price/book and 0.76x price/sales. Compared to others, Telephone and Data Systems, Inc. is in a different league with regards to profitability, having net margins of 8%. To put some perspective around this, the industry’s average net margin is 6.8%. TDS’s ROE is 9.1%, which is also considerably worse than the industry’s ROE of 9.25%. It’s also very liquid in the near term, with a current ratio of 2.8. The stock has a debt/capital of 0.54.
Shares of Telephone and Data Systems, Inc. (TDS) have gained 18.7% since the company’s last earnings report. Over the past 12 fiscal quarters, Telephone and Data Systems, Inc. (NYSE:TDS) has topped consensus earnings estimates in 7 quarters (58%), missed earnings in 4 quarters (33%), whereas at 1 occasion EPS met analyst expectations. TDS last reported earnings on November 02, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.41 per share, -99.46% change on the same period last year. That was better than consensus for $0.23. Revenue for the recent quarter stood at $1.3 billion, up 4% on last year and above the $1.28 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.26 billion to $1.26 billion, which should be compared with $1.28 billion generated last year. EPS is seen in a range of $0.26 to $0.4, against the $0.13 reported a year ago.