Why Is Telephone And Data Systems Stock Surging Today?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 03 2024
0mins
Source: Benzinga
- Telephone and Data Systems, Inc. Deal: TDS announced the sale of its subsidiaries OneNeck IT Solutions and OneNeck Data Center Holdings to US Signal Company.
- Acquisition Details: US Signal, owned by Igneo Infrastructure Partners, will acquire all operations of OneNeck, including data centers, cloud hosting, and solutions provider services.
- Strategic Capital Allocation: TDS aims to prioritize assets for competitiveness, with the sale providing capital to support TDS Telecom's fiber program for broadband connectivity.
- Transaction Timeline: The deal is set to close in the third quarter of 2024, subject to customary closing conditions.
- Investor Opportunities: Investors can access TDS shares through SPDR S&P Telecom ETF XTL and Invesco S&P SmallCap Utilities & Communication Services ETF PSCU.
Analyst Views on TDS
Wall Street analysts forecast TDS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TDS is 51.00 USD with a low forecast of 51.00 USD and a high forecast of 51.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 44.850
Low
51.00
Averages
51.00
High
51.00
Current: 44.850
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.
