HARRY HARCZAK JR's Recent Buy: Acquires $121K In United States Cellular Stock

On May 22, a substantial insider purchase was made by HARRY HARCZAK JR, Director at United States Cellular USM, as per the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that JR purchased 2,836 shares of United States Cellular. The total transaction amounted to $121,976.

The latest update on Thursday morning shows United States Cellular shares down by 0.0%, trading at $43.68.

Unveiling the Story Behind 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.

United States Cellular: A Financial Overview

Revenue Challenges: United States Cellular's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -3.65%. This indicates a decrease in 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.

Interpreting Earnings Metrics:

• Gross Margin: The company shows a low gross margin of 58.11%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): United States Cellular's EPS is below the industry average. The company faced challenges with a current EPS of 0.21. This suggests a potential decline in earnings.

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.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: United States Cellular's P/E ratio of 64.24 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.99 is lower than the industry average, implying a discounted valuation for United States Cellular's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 7.68 reflects market recognition of United States Cellular's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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The Importance of Insider Transactions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Exploring Key Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes 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.