USM stock: buy or sell?

USM stock price: $35.54 0.11% At close on August 22nd, 2019

Updated on:
August 22nd, 2019

0

United States Cellular stayed steady a neutral 0.11% and closed at $35.54.

United States Cellular Corporation provides wireless telecommunications services in the United States. Its wireless services include postpaid and prepaid service plans with voice, messaging, and data services; and smartphone messaging, data, and Internet services, which allow the customer to access the Web and social network sites, e-mail, text, picture, and video messaging, as well as to utilize GPS navigation, and browse and download various applications.

Should I buy USM stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to define your own trading plan that matches with your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with United States Cellular stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is United States Cellular stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 5 ratings published for USM stock in the last 30 days.

Is USM a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-6Wells Fargo & Con/aMarket Perform
2019-8-6B. Rileyn/aNeutral
2019-8-5JPMorgan Chase & Co.UnderweightNeutral
2019-6-18Morgan StanleyEqual WeightOverweight
2019-5-6Raymond Jamesn/aOutperform

USM stock analysis

Daily outlook

United States Cellular shares stayed stable 0.11% to $35.54 today.

United States Cellular ended today at $35.54 and stayed stable a neutral 0.11%.

USM stock chart (daily)

Weekly outlook

United States Cellular shares stepped up 1.63% this week, ending at $35.54. Early August USM plummed a hair-raising -6.67% in just one week. Early July USM rocketed a superb 5.04% in just one week.

USM stock chart (weekly)

USM stock price history

USM IPO was on May 4th, 1988 at $12.76 per share1. Since then, USM stock grew a 178.50%, with an average of 5.80% per year. If you had invested $1,000 in USM stock in 1988, it would worth $1,785.00 today.

1: Adjusted price after possible price splits or reverse-splits.

USM stock historical price chart

USM stock reached 52-week highs on January at $59.74, and all-time highs 1999-11-29 with a price of 107.86.

USM stock price target is $45.30

Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We have 4 price predictions for USM stock posted in the last 30 days:
USM stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-6Wells Fargo & CoLowers Target$50.00$40.00-20%
2019-8-6B. RileyLowers Target$50.00$42.00-16%
2019-8-5JPMorgan Chase & Co.Upgradesn/a$46.00-
2019-5-6Raymond JamesReiterates$56.00$53.00-5.4%
(in average)$52.00$45.30-13.0%
The price forecast for United States Cellular stock is $45.30, moving in a range between $53.00 and $40.00. In average, analysts' outlook on USM price target is negative, downsizing the forecast by a -13.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, United States Cellular presented its financial report, posting an exceptional growth for the Earnings per Share (EPS) ratio. Experts were expecting $0.14 per share, but United States Cellular posted $0.23.
USM earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.23n/a
2017-Q2-n/a0.17n/a
2017-Q32017-11-080.040.11175.0%
2017-Q42018-02-23-0.080.05n/a
2018-Q12018-05-010.290.4451.7%
2018-Q22018-08-030.190.47147.4%
2018-Q32018-11-020.240.4170.8%
2018-Q42019-02-220.140.2364.3%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, United States Cellular annual turnover gained a slightly good 1.98% to $3,967.00 million dollars from $3,890.00 marked in 2017. In line, its earnings margin (compared to sales) appreciated to 3.78%, that is $150.00 million.

USM annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$3,920 M-$140 M3.6%-
2014$3,893 M-0.70%$-42.81 M-1.1%-130.57%
2015$3,997 M2.67%$241 M6.0%-663.74%
2016$3,939 M-1.45%$48 M1.2%-80.11%
2017$3,890 M-1.24%$12 M0.3%-75.00%
2018$3,967 M1.98%$150 M3.8%1,150.00%

Quarterly financial results

United States Cellular reported $1,051.00 M in sales for 2018-Q4, a 5.00% improvement compared to previous quarter. Reported quarter earnings marked $21.00 M with a profit margin of 2.00%. Profit margin slightly fell a -1.60% compared to previous quarter when profit margin was 3.60%. When comparing revenues to same quarter last year, United States Cellular sales marked a tiny gain and stepped up a 2.24%. Looking back to recent quarterly results, United States Cellular posted 3 negative quarters in a row.
USM quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$936 M-$26 M2.8%-
2017-Q2$963 M2.88%$12 M1.2%-53.85%
2017-Q3$963 M0.00%$-299 M-31.0%-2,591.67%
2017-Q4$1,028 M6.75%$273 M26.6%-191.30%
2018-Q1$942 M-8.37%$45 M4.8%-83.52%
2018-Q2$974 M3.40%$49 M5.0%8.89%
2018-Q3$1,001 M2.77%$36 M3.6%-26.53%
2018-Q4$1,051 M5.00%$21 M2.0%-41.67%

United States Cellular ownership

When you are planning to buy shares of a company, it's always worth to overview its ownership structure.

United States Cellular shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.55% of all shares.

In case of United States Cellular stock, 27.50% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for USM stock account 0.00%, no big difference from last month.

For a better understanding, the following table shows ownership data compared to other related companies:

USMSHENSPOKTTDS
Market cap$1.9 B$1.6 B$231.9 M$230.0 B$2.6 B
Total shares53.4 M49.9 M19.2 M6,500.0 M106.6 M
Float shares15.5 M47.0 M16.1 M7,300.0 M100.2 M
  - Institutional holdings (%)27.5%50.5%87.0%55.4%90.3%
  - Insider holdings (%)0.5%5.4%2.2%0.1%0.8%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

USM summary

Thursday, August 22nd, 2019
Open$35.56
Close$35.54
Day range$35.29 - $36.39
Previous close$35.50
Session gain0.11%
Average true range$1.22
50d mov avg$43.56
100d mov avg$45.16
200d mov avg$49.01
Daily pattern
Weekly pattern

United States Cellular performance

To measure stock performance is always good to benchmark with competitors or related stocks. In the following table, we compare United States Cellular performance to Shenandoah Telecommunications, Spok, AT&T, Telephone and Data Systems, T-Mobile US and Verizon Communications:
Stock3m6m12m
USMUnited States Cel...-22.99%-27.62%-18.73%
SHENShenandoah Teleco...-24.56%-33.42%-13.56%
SPOKSpok-25.19%-13.92%-19.87%
TAT&T11.32%17.19%15.35%
TDSTelephone and Dat...-19.09%-23.51%-17.26%
TMUST-Mobile US0.67%6.27%18.93%
VZVerizon Communica...-3.27%1.85%8.11%

United States Cellular competitors

One check before trading any stock is to review a list of its competitors, in this case for United States Cellular. We selected 6 companies as United States Cellular competitors as they are in the same industry or have similar market objectives.