In a remarkable display of market confidence, shares of Telephone and Data Systems Inc (NYSE:TDS) have surged to a 52-week high, reaching a peak of $34.8 USD. According to InvestingPro data, analysts see further upside potential, with price targets ranging from $40 to $51. This milestone underscores a period of significant growth for the telecommunications company, which has seen its stock value climb by an impressive 94.38% over the past year, with an even more remarkable 88.69% gain year-to-date. Investors have rallied behind TDS, buoyed by the company's strategic initiatives and strong performance in a competitive industry. The 52-week high represents not just a momentary peak but also the culmination of a year-long upward trend that has firmly established TDS as a standout performer in the market. With a healthy current ratio of 1.59, the company maintains strong liquidity to support its operations. Discover more valuable insights about TDS and 1,400+ other stocks with an InvestingPro subscription, including exclusive ProTips and comprehensive financial analysis.
In other recent news, Telephone and Data Systems, Inc. (TDS) has unveiled several key developments. The company has appointed Napoleon B. Rutledge Jr., an experienced financial expert, to its Board of Directors and Audit Committee. This move is expected to enhance TDS's governance and oversight capabilities. Rutledge's appointment is effective from December 1, 2024.
In financial updates, TDS US Cellular, a TDS subsidiary, reported a 3% improvement in adjusted EBITDA for the third quarter of 2024, despite a decrease in service revenues due to a shrinking subscriber base. The company is also in the midst of a sale of wireless operations and spectrum to T-Mobile, projected to conclude by mid-2025.
Furthermore, TDS US Cellular has adjusted its guidance for service revenues and adjusted EBITDA for 2024. The company recorded a $136 million impairment loss on millimeter wave licenses, but expects substantial proceeds from the sale of spectrum licenses, anticipated to exceed their book value. In addition, TDS US Cellular is expanding its fiber network, aiming for 1.2 million marketable fiber addresses, and preparing for the launch of an MVNO with a national 5G partner. These recent developments signify a period of strategic transactions and growth for the company.
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