Diameter Capital Fully Exits TDS Stock Position
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 43 minutes ago
0mins
Source: Fool
- Exit Transaction: Diameter Capital Partners LP disclosed in a filing with the SEC that it sold 1,067,297 shares of Telephone and Data Systems (TDS), reducing its stake from 4% to 0%, indicating a loss of confidence in the stock's future performance.
- Portfolio Dynamics: This transaction marks the complete exit of Diameter's fifth-largest holding, previously valued at $43.4 million, reflecting the fund's cautious stance as it adjusts its $1.1 billion portfolio amid changing market conditions.
- Market Performance Comparison: Over the past year, TDS shares returned 17.6%, significantly lagging behind the S&P 500 and Nasdaq Composite's returns of 30.4% and 41.5%, respectively, suggesting a weakening competitive position that may impact investor sentiment.
- Financial Performance Review: TDS's recent Q1 earnings report showed a 7% year-over-year revenue increase to $309.5 million, with a profit of $146.6 million, reversing a $5.9 million loss from the previous year; however, market expectations for future growth remain cautious.
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Analyst Views on TDS
Wall Street analysts forecast TDS stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 41.200
Low
51.00
Averages
51.00
High
51.00
Current: 41.200
Low
51.00
Averages
51.00
High
51.00
About TDS
Telephone and Data Systems, Inc. is a diversified telecommunications company. The Company provides broadband, video and voice through its TDS Telecom. The Company’s segment includes Array, TDS Telecom, and Other. Its Array business connects America through digital infrastructure by leasing tower space to tenants and providing ancillary services. It also holds non-controlling interests in primarily wireless operating companies and holds certain wireless spectrum licenses. Its TDS Telecom business provides residential Internet, video, mobile, and voice services primarily through monthly subscription arrangements. Its Other business segment includes its wholly owned subsidiary Suttle-Straus, Inc. The Company, through its subsidiary TDS Telecommunications LLC, delivers high-speed Internet, television entertainment, and phone services to a mix of small to mid-sized urban, suburban and rural communities throughout the United States.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Diameter Capital Fully Exits TDS Stock Position
- Exit Transaction: Diameter Capital Partners LP disclosed in a filing with the SEC that it sold 1,067,297 shares of Telephone and Data Systems (TDS), reducing its stake from 4% to 0%, indicating a loss of confidence in the stock's future performance.
- Portfolio Dynamics: This transaction marks the complete exit of Diameter's fifth-largest holding, previously valued at $43.4 million, reflecting the fund's cautious stance as it adjusts its $1.1 billion portfolio amid changing market conditions.
- Market Performance Comparison: Over the past year, TDS shares returned 17.6%, significantly lagging behind the S&P 500 and Nasdaq Composite's returns of 30.4% and 41.5%, respectively, suggesting a weakening competitive position that may impact investor sentiment.
- Financial Performance Review: TDS's recent Q1 earnings report showed a 7% year-over-year revenue increase to $309.5 million, with a profit of $146.6 million, reversing a $5.9 million loss from the previous year; however, market expectations for future growth remain cautious.
See More
Diameter Capital Fully Exits TDS Stock Position
- Exit Transaction: Diameter Capital Partners LP reported on May 15 that it sold 1,067,297 shares of Telephone and Data Systems (TDS), completely exiting its position, which previously represented 4% of its assets under management.
- Significant Position Change: This transaction marks the exit of Diameter Capital's fifth-largest holding, involving shares valued at $43.4 million, indicating a diminishing confidence in TDS's prospects.
- Underperformance in Market: Although TDS's stock returned 17.6% over the past year, it significantly lagged behind the S&P 500 and Nasdaq Composite's returns of 30.4% and 41.5%, respectively, reflecting market concerns about its future growth.
- Financial Performance Review: TDS's recent Q1 earnings report showed a 7% year-over-year revenue increase to $309.5 million, with profits from continuing operations turning around from a $5.9 million loss last year to $146.6 million, yet the market remains cautious about its future performance.
See More
TDS Declares Quarterly Dividend of $0.04 per Share
- Quarterly Dividend Announcement: Telephone and Data Systems (TDS) has declared a quarterly dividend of $0.04 per share, consistent with previous distributions, indicating the company's stable cash flow and commitment to shareholder returns.
- Dividend Yield: The forward yield of 0.39% reflects the company's attractiveness in the current market environment, potentially appealing to investors seeking stable income.
- Payment Schedule: The dividend is payable on June 30, with a record date of June 16 and an ex-dividend date also set for June 16, ensuring shareholders receive timely returns.
- Future Growth Targets: TDS aims to add 200,000 to 250,000 new fiber addresses by 2026 while proposing to acquire the remaining Array shares, demonstrating the company's proactive strategy in expanding its network infrastructure.
See More
Telephone and Data Systems Declares Q2 2026 Dividends
- Dividend Declaration: The board of Telephone and Data Systems has declared dividends for Q2 2026 on its Common Shares, Series A Common Shares, Series UU Preferred Shares, and Series VV Preferred Shares, reflecting the company's ongoing profitability and commitment to shareholder returns.
- Ticker Information: The ticker for Common Shares is 'TDS', for Series UU depositary shares is 'TDSPrU', and for Series VV depositary shares is 'TDSPrV', providing investors with clear investment options and transparency.
- Company Background: Founded in 1969, Telephone and Data Systems focuses on providing broadband services and wireless infrastructure through its subsidiaries, TDS Telecom and Array Digital Infrastructure, Inc., showcasing its solid position in the telecommunications industry.
- Investor Information: The company offers comprehensive financial information, including earnings releases, quarterly and annual filings, and shareholder information, further enhancing investor confidence in the company's financial health.
See More
Dan Loeb's Third Point Portfolio Adjustments
- Portfolio Expansion: Third Point made significant additions in Q1, initiating positions in tech and semiconductor firms like ASML, Lam Research, and KLA, reflecting a strong commitment to the AI trade and enhancing its competitive edge in the rapidly evolving tech landscape.
- Emerging Investments: The hedge fund also disclosed new stakes in the VanEck Semiconductor ETF and aircraft parts supplier TransDigm Group, indicating confidence in the semiconductor sector, particularly amid rising AI-driven market demand.
- Bitcoin Mining Positioning: Third Point increased its investment in Hut 8, a Miami-based energy infrastructure and bitcoin mining company, whose shares have more than doubled in 2026, highlighting investor interest in AI-related power demand and data center infrastructure opportunities.
- Position Adjustments: While Third Point reduced its stake in Taiwan Semiconductor by 35%, Amazon remains its largest equity holding, demonstrating confidence in the company's long-term growth potential despite a 10% reduction during the quarter.
See More
Telephone and Data Systems and Array to Hold Shareholder Meetings
- Shareholder Meeting Schedule: Array will hold its Annual Meeting of Shareholders on May 19, 2026, at 8:30 a.m. Central Time, while TDS is set for May 21, 2026, at 9:00 a.m. Central Time, aimed at enhancing communication and transparency with shareholders.
- Live Webcast Format: Both meetings will be webcast live, allowing investors to listen in via their respective investor pages, ensuring shareholders can participate in real-time and receive the latest updates.
- Registration Recommendation: Shareholders are advised to register at least 15 minutes before the meetings to download and install any necessary multimedia streaming software, thereby ensuring a smooth participation experience.
- Company Background Information: TDS provides broadband, video, voice, and wireless services, while Array owns 4,452 cell towers supporting 5G deployment across the U.S., showcasing the strong collaboration between the two companies in the wireless communications infrastructure sector.
See More
Diameter Capital Fully Exits TDS Stock Position
- Exit Transaction: Diameter Capital Partners LP disclosed in a filing with the SEC that it sold 1,067,297 shares of Telephone and Data Systems (TDS), reducing its stake from 4% to 0%, indicating a loss of confidence in the stock's future performance.
- Portfolio Dynamics: This transaction marks the complete exit of Diameter's fifth-largest holding, previously valued at $43.4 million, reflecting the fund's cautious stance as it adjusts its $1.1 billion portfolio amid changing market conditions.
- Market Performance Comparison: Over the past year, TDS shares returned 17.6%, significantly lagging behind the S&P 500 and Nasdaq Composite's returns of 30.4% and 41.5%, respectively, suggesting a weakening competitive position that may impact investor sentiment.
- Financial Performance Review: TDS's recent Q1 earnings report showed a 7% year-over-year revenue increase to $309.5 million, with a profit of $146.6 million, reversing a $5.9 million loss from the previous year; however, market expectations for future growth remain cautious.
See More
Diameter Capital Fully Exits TDS Stock Position
- Exit Transaction: Diameter Capital Partners LP reported on May 15 that it sold 1,067,297 shares of Telephone and Data Systems (TDS), completely exiting its position, which previously represented 4% of its assets under management.
- Significant Position Change: This transaction marks the exit of Diameter Capital's fifth-largest holding, involving shares valued at $43.4 million, indicating a diminishing confidence in TDS's prospects.
- Underperformance in Market: Although TDS's stock returned 17.6% over the past year, it significantly lagged behind the S&P 500 and Nasdaq Composite's returns of 30.4% and 41.5%, respectively, reflecting market concerns about its future growth.
- Financial Performance Review: TDS's recent Q1 earnings report showed a 7% year-over-year revenue increase to $309.5 million, with profits from continuing operations turning around from a $5.9 million loss last year to $146.6 million, yet the market remains cautious about its future performance.
See More
TDS Declares Quarterly Dividend of $0.04 per Share
- Quarterly Dividend Announcement: Telephone and Data Systems (TDS) has declared a quarterly dividend of $0.04 per share, consistent with previous distributions, indicating the company's stable cash flow and commitment to shareholder returns.
- Dividend Yield: The forward yield of 0.39% reflects the company's attractiveness in the current market environment, potentially appealing to investors seeking stable income.
- Payment Schedule: The dividend is payable on June 30, with a record date of June 16 and an ex-dividend date also set for June 16, ensuring shareholders receive timely returns.
- Future Growth Targets: TDS aims to add 200,000 to 250,000 new fiber addresses by 2026 while proposing to acquire the remaining Array shares, demonstrating the company's proactive strategy in expanding its network infrastructure.
See More
Telephone and Data Systems Declares Q2 2026 Dividends
- Dividend Declaration: The board of Telephone and Data Systems has declared dividends for Q2 2026 on its Common Shares, Series A Common Shares, Series UU Preferred Shares, and Series VV Preferred Shares, reflecting the company's ongoing profitability and commitment to shareholder returns.
- Ticker Information: The ticker for Common Shares is 'TDS', for Series UU depositary shares is 'TDSPrU', and for Series VV depositary shares is 'TDSPrV', providing investors with clear investment options and transparency.
- Company Background: Founded in 1969, Telephone and Data Systems focuses on providing broadband services and wireless infrastructure through its subsidiaries, TDS Telecom and Array Digital Infrastructure, Inc., showcasing its solid position in the telecommunications industry.
- Investor Information: The company offers comprehensive financial information, including earnings releases, quarterly and annual filings, and shareholder information, further enhancing investor confidence in the company's financial health.
See More
Dan Loeb's Third Point Portfolio Adjustments
- Portfolio Expansion: Third Point made significant additions in Q1, initiating positions in tech and semiconductor firms like ASML, Lam Research, and KLA, reflecting a strong commitment to the AI trade and enhancing its competitive edge in the rapidly evolving tech landscape.
- Emerging Investments: The hedge fund also disclosed new stakes in the VanEck Semiconductor ETF and aircraft parts supplier TransDigm Group, indicating confidence in the semiconductor sector, particularly amid rising AI-driven market demand.
- Bitcoin Mining Positioning: Third Point increased its investment in Hut 8, a Miami-based energy infrastructure and bitcoin mining company, whose shares have more than doubled in 2026, highlighting investor interest in AI-related power demand and data center infrastructure opportunities.
- Position Adjustments: While Third Point reduced its stake in Taiwan Semiconductor by 35%, Amazon remains its largest equity holding, demonstrating confidence in the company's long-term growth potential despite a 10% reduction during the quarter.
See More
Telephone and Data Systems and Array to Hold Shareholder Meetings
- Shareholder Meeting Schedule: Array will hold its Annual Meeting of Shareholders on May 19, 2026, at 8:30 a.m. Central Time, while TDS is set for May 21, 2026, at 9:00 a.m. Central Time, aimed at enhancing communication and transparency with shareholders.
- Live Webcast Format: Both meetings will be webcast live, allowing investors to listen in via their respective investor pages, ensuring shareholders can participate in real-time and receive the latest updates.
- Registration Recommendation: Shareholders are advised to register at least 15 minutes before the meetings to download and install any necessary multimedia streaming software, thereby ensuring a smooth participation experience.
- Company Background Information: TDS provides broadband, video, voice, and wireless services, while Array owns 4,452 cell towers supporting 5G deployment across the U.S., showcasing the strong collaboration between the two companies in the wireless communications infrastructure sector.
See More
