United States Cellular (NYSE:USM) Reaches New 12-Month High After Better-Than-Expected Earnings

Key Points

• United States Cellular Corporation reached a new 52-week high of $78.29, with significant trading volume of 127,287 shares, marking an increase from its previous close of $74.25.
• Analysts from Raymond James Financial and JPMorgan Chase & Co. have updated their ratings and price targets, with Raymond James maintaining an "outperform" rating and raising its price target to $84.00.
• Institutional investors are showing increased interest, with Universal Beteiligungs and Creative Planning notably boosting their stakes by 9.5% and 21.7% respectively during the second quarter.

Shares of United States Cellular Corporation (NYSE:USM - Get Free Report) reached a new 52-week high on Monday following a stronger than expected earnings report. The company traded as high as $77.58 and last traded at $78.29, with a volume of 127287 shares changing hands. The stock had previously closed at $74.25.

The Wireless communications provider reported $0.36 earnings per share for the quarter, topping the consensus estimate of $0.33 by $0.03. United States Cellular had a negative net margin of 0.68% and a positive return on equity of 1.68%. The company had revenue of $916.00 million during the quarter, compared to analyst estimates of $907.73 million.

United States Cellular Increases Dividend

The firm also recently declared a special dividend, which will be paid on Tuesday, August 19th. Stockholders of record on Monday, August 11th will be issued a $23.00 dividend. This is a boost from United States Cellular's previous special dividend of $0.06. The ex-dividend date of this dividend is Wednesday, August 20th.

Analysts Set New Price Targets

USM has been the subject of several research reports. JPMorgan Chase & Co. lifted their price target on shares of United States Cellular from $85.00 to $87.00 and gave the company an "overweight" rating in a report on Tuesday. Raymond James Financial reaffirmed an "outperform" rating and issued a $84.00 price target (up from $78.00) on shares of United States Cellular in a report on Friday, July 25th.

Institutional Trading of United States Cellular

A number of hedge funds and other institutional investors have recently made changes to their positions in USM. JPMorgan Chase & Co. raised its position in shares of United States Cellular by 78.0% during the 4th quarter. JPMorgan Chase & Co. now owns 93,781 shares of the Wireless communications provider's stock worth $5,882,000 after buying an additional 41,093 shares in the last quarter. Geode Capital Management LLC lifted its stake in United States Cellular by 1.8% during the fourth quarter. Geode Capital Management LLC now owns 169,238 shares of the Wireless communications provider's stock valued at $10,620,000 after purchasing an additional 3,057 shares during the last quarter. Renaissance Technologies LLC lifted its stake in United States Cellular by 4.6% during the fourth quarter. Renaissance Technologies LLC now owns 68,197 shares of the Wireless communications provider's stock valued at $4,277,000 after purchasing an additional 2,997 shares during the last quarter. Raymond James Financial Inc. bought a new stake in United States Cellular during the fourth quarter worth approximately $1,036,000. Finally, Barclays PLC grew its position in United States Cellular by 97.0% in the fourth quarter. Barclays PLC now owns 48,539 shares of the Wireless communications provider's stock worth $3,044,000 after buying an additional 23,903 shares during the last quarter. 18.03% of the stock is currently owned by institutional investors.

United States Cellular Stock Performance

The company has a quick ratio of 1.48, a current ratio of 1.70 and a debt-to-equity ratio of 0.62. The stock has a market cap of $6.62 billion, a price-to-earnings ratio of -259.59 and a beta of 0.38. The company's 50-day simple moving average is $67.87 and its 200-day simple moving average is $65.95.

United States Cellular Company Profile

United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides wireless devices, such as handsets, tablets, mobile hotspots, home phones, and routers, as well as wireless essentials, including cases, screen protectors, chargers, and memory cards; and consumer electronics comprising audio, home automation, and networking products.