Telephone and Data Systems Inc. (TDS) deserves deeper analysis

The share price of Telephone and Data Systems Inc. (NYSE:TDS) fell to $7.93 per share on Tuesday from $8.02. While Telephone and Data Systems Inc. has underperformed by -1.12%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, TDS fell by -49.84%, with highs and lows ranging from $17.42 to $6.43, whereas the simple moving average fell by -24.16% in the last 200 days.

On July 17, 2023, Citigroup Downgraded Telephone and Data Systems Inc. (NYSE: TDS) to Neutral.

Analysis of Telephone and Data Systems Inc. (TDS)

A return on investment can be expected regardless of TDS’s performance over the next quarter with the dividend set at $0.74 per share. Further, the quarter-over-quarter decrease in sales is -0.90%, showing a negative trend in the upcoming months.

To gain a thorough understanding of Telephone and Data Systems Inc.’s future performance, several well-rounded types of analysis and research techniques can be used, with equity being among the most crucial. The goal here is to ensure that your current return on equity of -1.20% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 1.30, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.

It is also very valuable to look at average volume as an indicator of volatility for a stock, and TDS is recording an average volume of 2.54M. On a monthly basis, the volatility of the stock is set at 4.64%, whereas on a weekly basis, it is put at 4.20%, with a loss of -4.80% over the past seven days. Furthermore, long-term investors anticipate a median target price of $11.50, showing growth from the present price of $7.93, which can serve as yet another indication of whether TDS is worth investing in or should be passed over.

How Do You Analyze Telephone and Data Systems Inc. Shares?

The number of employees owning shares of the company should also be considered in addition to the fundamentals. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 7.03%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 97.30% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.

Are institutional investors increasing their holdings in TDS shares?

The recent increase in stakes in TDS appears to be a result of several institutional investors and hedge funds increasing their positions. BlackRock Fund Advisors’s position in TDS has decreased by -2.09% in the first quarter. The company now owns 15,341,668 shares of the stock, with a value of $126.26 million, following the sale of -328,023 additional shares during the last quarter. The Vanguard Group, Inc. made another increased to its shares in TDS during the first quarter, upping its stake by 0.75%. During the last quarter, the company dropped down 89,180 additional shares for a total stake of worth $99.18 million, bringing number of shares owned by the company to 12,051,031.

During the first quarter, Dimensional Fund Advisors LP subtracted a -477,541 position in TDS. Invesco Capital Management LLC sold an additional -1.79 million shares in the last quarter, decreasing its holdings by -25.42%, now holding 5.25 million shares worth $43.24 million. At the end of the first quarter, SSgA Funds Management, Inc. decreased its TDS holdings by -75.09% and now holds 4.25 million TDS shares valued at $34.94 million with the lessened -12.8 million shares during the period. TDS shares are owned by institutional investors to the tune of 97.30% at present.