United States Cellular Insider Trades SendAa Signal

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

What Happened: CARLSON made a significant move by purchasing 2,836 shares of United States Cellular as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $121,976.

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

Get to Know United States Cellular Better

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'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. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Communication Services sector.

Interpreting Earnings Metrics:

• 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): United States Cellular's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.21.

Debt Management: United States Cellular's debt-to-equity ratio is below the industry average. With a ratio of 0.86, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 64.24 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.99, which is lower than the industry average. This suggests a possible undervaluation based on 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 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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Exploring the Significance of Insider Trading

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

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

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

A Deep Dive into Insider 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.