United States Cellular (NYSE:USM) Sets New 1-Year Low on Disappointing Earnings

Posted by on May 6th, 2023

United States Cellular Co. (NYSE:USM – Get Rating) shares reached a new 52-week low on Friday following a dissappointing earnings announcement. The stock traded as low as $14.80 and last traded at $15.01, with a volume of 142246 shares traded. The stock had previously closed at $20.03.

The Wireless communications provider reported $0.15 EPS for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.03). The firm had revenue of $986.00 million during the quarter, compared to analyst estimates of $1.02 billion. United States Cellular had a net margin of 0.72% and a return on equity of 0.65%. The business’s quarterly revenue was down 2.4% compared to the same quarter last year. During the same period in the prior year, the company earned $0.57 earnings per share.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on USM shares. Morgan Stanley reduced their target price on United States Cellular from $37.00 to $24.00 and set an “equal weight” rating on the stock in a report on Tuesday, February 7th. Wells Fargo & Company lowered United States Cellular from an “overweight” rating to an “underweight” rating and reduced their target price for the stock from $33.00 to $20.00 in a report on Tuesday, January 10th. Finally, StockNews.com raised United States Cellular from a “sell” rating to a “hold” rating in a report on Friday, March 24th. One analyst has rated the stock with a sell rating and four have given a hold rating to the company’s stock. According to MarketBeat, United States Cellular currently has an average rating of “Hold” and an average price target of $22.67.

Insider Buying and Selling

In related news, EVP Michael Irizarry sold 18,826 shares of the company’s stock in a transaction on Monday, April 10th. The stock was sold at an average price of $22.15, for a total transaction of $416,995.90. Following the completion of the sale, the executive vice president now directly owns 18,825 shares in the company, valued at approximately $416,973.75. The sale was disclosed in a filing with the SEC, which is available through this link. 0.23% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On United States Cellular

Several large investors have recently bought and sold shares of USM. Millennium Management LLC raised its position in United States Cellular by 345.6% in the second quarter. Millennium Management LLC now owns 299,551 shares of the Wireless communications provider’s stock valued at $8,675,000 after purchasing an additional 232,322 shares during the last quarter. Dimensional Fund Advisors LP raised its position in shares of United States Cellular by 6.7% during the third quarter. Dimensional Fund Advisors LP now owns 2,184,908 shares of the Wireless communications provider’s stock worth $56,874,000 after acquiring an additional 136,859 shares during the last quarter. Edmond DE Rothschild Holding S.A. raised its position in shares of United States Cellular by 36.1% during the fourth quarter. Edmond DE Rothschild Holding S.A. now owns 490,000 shares of the Wireless communications provider’s stock worth $10,216,000 after acquiring an additional 130,000 shares during the last quarter. Gamco Investors INC. ET AL raised its position in shares of United States Cellular by 5.5% during the fourth quarter. Gamco Investors INC. ET AL now owns 1,207,766 shares of the Wireless communications provider’s stock worth $25,182,000 after acquiring an additional 62,846 shares during the last quarter. Finally, AQR Capital Management LLC raised its position in shares of United States Cellular by 181.3% during the fourth quarter. AQR Capital Management LLC now owns 89,798 shares of the Wireless communications provider’s stock worth $1,872,000 after acquiring an additional 57,877 shares during the last quarter. 15.89% of the stock is currently owned by institutional investors.

United States Cellular Stock Down 13.9 %

The company has a debt-to-equity ratio of 0.70, a current ratio of 1.44 and a quick ratio of 1.22. The company has a market capitalization of $1.46 billion, a P/E ratio of 50.71 and a beta of 0.66. The stock has a 50-day moving average price of $21.35 and a 200-day moving average price of $22.52.

About United States Cellular

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United States Cellular Corp. engages in the provision of wireless telecommunication services. Its products include smartphones, tablets, vehicle routers, and accessories. It offers Internet plans, prepaid and postpaid plans, and roaming services. The company was founded by Leroy T. Carlson in 1983 and is headquartered in Chicago, IL.

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