Director At United States Cellular Buys $121K of Stock

It was revealed in a recent SEC filing that GREGORY JOSEFOWICZ, Director at United States Cellular USM made a noteworthy insider purchase on May 22,.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled that JOSEFOWICZ made a notable purchase of 2,836 shares of United States Cellular, valuing at $121,976.

United States Cellular's shares are actively trading at $43.68, experiencing a down of 0.0% during Thursday's morning session.

About United States Cellular

U.S. Cellular is a regional wireless carrier that serves about 4.5 million customers spread across four major geographic clusters: the Midwest, mid-Atlantic, New England, and the Pacific Northwest. These service territories encompass a total population of about 32 million people. The vast majority of the markets the firm serves are rural or second/third-tier cities, with only the greater Milwaukee and Oklahoma City regions boasting populations greater than 1 million. U.S. Cellular also owns a 5.5% stake in Verizon Wireless' Los Angeles operations and, unlike its wireless carrier peers, owns most of its own towers.

Breaking Down United States Cellular's Financial Performance

Revenue Growth: United States Cellular's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -3.65%. This indicates a decrease in the company's top-line earnings. When compared to others in the Communication Services sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Navigating Financial Profits:

• Gross Margin: With a low gross margin of 58.11%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): With an EPS below industry norms, United States Cellular exhibits below-average bottom-line performance with a current EPS of 0.21.

Debt Management: United States Cellular's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.86.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The P/E ratio of 64.24 is lower than the industry average, implying a discounted valuation for United States Cellular's stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.99, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): United States Cellular's EV/EBITDA ratio stands at 7.68, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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The Importance of Insider Transactions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Understanding Crucial Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of United States Cellular's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.