United States Cellular Recent Insider Activity

On May 22, a substantial insider purchase was made by Esteban Iriarte, Board Member at United States Cellular USM, as per the latest SEC filing.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Iriarte increased their investment in United States Cellular by purchasing 2,836 shares through open-market transactions, signaling confidence in the company's potential. The total transaction value is $121,976.

At Thursday morning, United States Cellular shares are up by 0.62%, trading at $43.95.

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.

Key Indicators: United States Cellular's Financial Health

Decline in Revenue: Over the 3 months period, United States Cellular faced challenges, resulting in a decline of approximately -3.65% in revenue growth as of 31 March, 2024. This signifies a reduction 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.

Insights into Profitability:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 58.11%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): United States Cellular's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.21.

Debt Management: United States Cellular's debt-to-equity ratio is below the industry average at 0.86, reflecting a lower dependency on debt financing and a more conservative financial approach.

Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 64.24 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.99 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering 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: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Uncovering the Importance of Insider Activity

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Understanding Crucial Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals 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.