Telephone and Data Systems Inc. [TDS] moved down -9.80: Why It’s Important

Telephone and Data Systems Inc. [NYSE: TDS] loss -9.80% or -2.19 points to close at $20.16 with a heavy trading volume of 3419132 shares. The company report on August 2, 2021 that TDS Announces Redemption Of 6.625% Senior Notes Due 2045.

Telephone and Data Systems, Inc. (NYSE: TDS) announced that it will redeem all of its outstanding 6.625% Senior Notes due 2045 (NYSE: TDI) (the “TDI Notes”). The $116.25 million aggregate principal amount of outstanding TDI Notes will be redeemed September 1, 2021, at a redemption price of 100 percent of the principal amount ($25 face value per unit), together with accrued and unpaid interest to the redemption date. The paying agent is The Bank of New York Mellon.

“Redemption of these notes builds on the progress we’ve already made towards lowering the average rate paid on our borrowings, which has continued to be a top Treasury priority for TDS and UScellular this year,” said Peter L. Sereda, TDS executive vice president and chief financial officer. “The cost savings generated through these redemptions will enable additional opportunities for investments in 5G and fiber deployment.”.

It opened the trading session at $21.60, the shares rose to $21.63 and dropped to $20.00, the range by which the price of stock traded the whole day. The daily chart for TDS points out that the company has recorded 5.83% gains over the past six months. However, it is still -23.08% lower than its most recent low trading price.

If we look at the average trading volume of 1.23M shares, TDS reached to a volume of 3419132 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Telephone and Data Systems Inc. [TDS]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for TDS shares is $33.17 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on TDS stock is a recommendation set at 1.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

JP Morgan have made an estimate for Telephone and Data Systems Inc. shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on August 02, 2021. While these analysts kept the previous recommendation, JP Morgan dropped their target price from $30 to $22. The new note on the price target was released on February 22, 2021, representing the official price target for Telephone and Data Systems Inc. stock. Previously, the target price had yet another drop from $27 to $25, while B. Riley Securities kept a Buy rating on TDS stock. On November 04, 2019, analysts decreased their price target for TDS shares from 35 to 32.

The Average True Range (ATR) for Telephone and Data Systems Inc. is set at 0.67, with the Price to Sales ratio for TDS stock in the period of the last 12 months amounting to 0.42. The Price to Book ratio for the last quarter was 0.47, with the Price to Cash per share for the same quarter was set at 9.56. Price to Free Cash Flow for TDS in the course of the last twelve months was 31.49 with Quick ratio for the last quarter at 2.60.

Trading performance analysis for TDS stock

Telephone and Data Systems Inc. [TDS] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -13.29. With this latest performance, TDS shares dropped by -11.38% in over the last four-week period, additionally plugging by 5.83% over the last 6 months – not to mention a rise of 3.81% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for TDS stock in for the last two-week period is set at 27.60, with the RSI for the last a single of trading hit 21.82, and the three-weeks RSI is set at 31.80 for Telephone and Data Systems Inc. [TDS]. The present Moving Average for the last 50 days of trading for this stock 23.74, while it was recorded at 22.23 for the last single week of trading, and 21.33 for the last 200 days.

Telephone and Data Systems Inc. [TDS]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Telephone and Data Systems Inc. [TDS] shares currently have an operating margin of +5.67 and a Gross Margin at +37.80. Telephone and Data Systems Inc.’s Net Margin is presently recorded at +4.33.

Return on Total Capital for TDS is now 3.13, given the latest momentum, and Return on Invested Capital for the company is 2.65. Return on Equity for this stock inclined to 4.78, with Return on Assets sitting at 1.94. When it comes to the capital structure of this company, Telephone and Data Systems Inc. [TDS] has a Total Debt to Total Equity ratio set at 93.63. Additionally, TDS Total Debt to Total Capital is recorded at 48.36, with Total Debt to Total Assets ending up at 35.91. Long-Term Debt to Equity for the company is recorded at 90.84, with the Long-Term Debt to Total Capital now at 46.91.

Reflecting on the efficiency of the workforce at the company, Telephone and Data Systems Inc. [TDS] managed to generate an average of $24,565 per employee. Receivables Turnover for the company is 4.25 with a Total Asset Turnover recorded at a value of 0.45.Telephone and Data Systems Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.60 and a Current Ratio set at 2.70.

An analysis of insider ownership at Telephone and Data Systems Inc. [TDS]

There are presently around $1,882 million, or 90.30% of TDS stock, in the hands of institutional investors. The top three institutional holders of TDS stocks are: BLACKROCK INC. with ownership of 11,688,608, which is approximately -10.601% of the company’s market cap and around 0.60% of the total institutional ownership; STATE STREET CORP, holding 10,218,029 shares of the stock with an approximate value of $206.0 million in TDS stocks shares; and VANGUARD GROUP INC, currently with $187.15 million in TDS stock with ownership of nearly -5.65% of the company’s market capitalization.

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Positions in Telephone and Data Systems Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 121 institutional holders increased their position in Telephone and Data Systems Inc. [NYSE:TDS] by around 12,714,258 shares. Additionally, 140 investors decreased positions by around 10,553,161 shares, while 25 investors held positions by with 70,072,534 shares. The mentioned changes placed institutional holdings at 93,339,953 shares, according to the latest SEC report filing. TDS stock had 39 new institutional investments in for a total of 3,826,894 shares, while 41 institutional investors sold positions of 1,470,892 shares during the same period.

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