Telephone and Data Systems Inc. (NYSE: TDS) stock fell -0.57% on Tuesday to $12.29 against a previous-day closing price of $12.36. With 1.94 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.4 million shares. During the session, the Telecom Services company that operates in wider Communication Services sector, reached to the highest price of $12.47 whereas the lowest price it dropped to was $12.06. The 52-week range on TDS shows that it touched its highest point at $21.05 and its lowest point at $9.65 during that stretch. It currently has a 1-year price target of $19.50. With its current market cap of 1.24 billion, TDS has annualized dividend of $0.72 while the current yield stands at 5.86%. Beta for the stock currently stands at 0.98.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TDS was up-trending over the past week, with a rise of 5.22%, but this was up by 20.61% over a month. Three-month performance dropped to -21.52% while six-month performance fell -18.07%. The stock lost -36.62% in the past year, while it has gained 17.16% so far this year. A look at the trailing 12-month EPS for TDS yields 0.43 with Next year EPS estimates of -0.19. For the next quarter, that number is -0.35. This implies an EPS growth rate of -48.70% for this year and -533.30% for next year.
Float and Shares Shorts:
At present, 114.00 million TDS shares are outstanding with a float of 91.11 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.58 million, which was 3.14% higher than short shares on Sep 14, 2022. In addition to Mr. LeRoy T. Carlson Jr. as the firm’s Pres, CEO & Director, Ms. Vicki L. Villacrez serves as its Exec. VP & CFO.
Through their ownership of 93.67% of TDS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 70.28% of TDS, in contrast to 7.21% held by mutual funds. Shares owned by individuals account for 22.83%. As the largest shareholder in TDS with 19.30% of the stake, SSgA Funds Management, Inc. holds 20,495,659 shares worth 20,495,659. A second-largest stockholder of TDS, BlackRock Fund Advisors, holds 15,030,017 shares, controlling over 14.16% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in TDS, holding 11,699,632 shares or 11.02% stake. With a 9.91% stake in TDS, the SPDR S&P Dividend ETF is the largest stakeholder. A total of 10,528,139 shares are owned by the mutual fund manager. The iShares Core S&P Small Cap ETF, which owns about 6.95% of TDS stock, is the second-largest Mutual Fund holder. It holds 7,383,637 shares valued at 77.45 million. Invesco High Yield Equity Dividen holds 4.65% of the stake in TDS, owning 4,941,782 shares worth 51.84 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TDS since 5 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With TDS analysts setting a high price target of $22.00 and a low target of $14.00, the average target price over the next 12 months is $18.67. Based on these targets, TDS could surge 79.01% to reach the target high and rise by 13.91% to reach the target low. Reaching the average price target will result in a growth of 51.91% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. TDS will report FY 2022 earnings on 02/16/2024. Analysts have provided yearly estimates in a range of $0.59 being high and -$0.08 being low. For TDS, this leads to a yearly average estimate of $0.12. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Telephone and Data Systems Inc. surprised analysts by -$0.25 when it reported -$0.22 EPS against a consensus estimate of $0.03. The surprise factor in the prior quarter was $0.05. Based on analyst estimates, the high estimate for the next quarter is -$0.08 and the low estimate is -$0.42. The average estimate for the next quarter is thus -$0.28.
Summary of Insider Activity:
Insiders traded TDS stock several times over the past three months with 1 Buys and 1 Sells. In these transactions, 13,007 shares were bought while 3,505 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 17 over the past year. The total number of shares bought during that period was 296,147 while 98,639 shares were sold.