United States Cellular (NYSE:USM) Shares Gap Down Following Weak Earnings

Shares of United States Cellular Co. (NYSE:USM - Get Free Report) gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $68.85, but opened at $65.20. United States Cellular shares last traded at $65.15, with a volume of 65,089 shares changing hands.

The Wireless communications provider reported $0.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.37 by ($0.16). The company had revenue of $891.00 million during the quarter, compared to analyst estimates of $924.90 million. United States Cellular had a negative net margin of 0.79% and a positive return on equity of 1.55%.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the stock. Raymond James reissued an "outperform" rating and set a $78.00 price target (down from $83.00) on shares of United States Cellular in a report on Monday. JPMorgan Chase & Co. raised their target price on United States Cellular from $86.00 to $88.00 and gave the company an "overweight" rating in a research report on Monday, February 24th. Finally, StockNews.com raised United States Cellular from a "sell" rating to a "hold" rating in a report on Friday, February 21st.

Institutional Trading of United States Cellular

Institutional investors have recently modified their holdings of the stock. Barclays PLC increased its stake in United States Cellular by 10.8% during the 3rd quarter. Barclays PLC now owns 24,636 shares of the Wireless communications provider's stock worth $1,345,000 after buying an additional 2,405 shares in the last quarter. JPMorgan Chase & Co. raised its stake in United States Cellular by 34.3% in the 3rd quarter. JPMorgan Chase & Co. now owns 52,688 shares of the Wireless communications provider's stock valued at $2,879,000 after purchasing an additional 13,467 shares during the last quarter. SG Americas Securities LLC lifted its holdings in United States Cellular by 262.8% in the 4th quarter. SG Americas Securities LLC now owns 17,275 shares of the Wireless communications provider's stock valued at $1,083,000 after purchasing an additional 12,513 shares in the last quarter. Mariner Investment Group LLC acquired a new stake in United States Cellular during the 4th quarter worth $1,944,000. Finally, R Squared Ltd purchased a new stake in shares of United States Cellular during the fourth quarter worth $38,000. Institutional investors and hedge funds own 18.03% of the company's stock.

United States Cellular Price Performance

The stock's 50-day moving average price is $66.19 and its 200 day moving average price is $64.16. The company has a quick ratio of 1.39, a current ratio of 1.57 and a debt-to-equity ratio of 0.63. The firm has a market capitalization of $5.39 billion, a price-to-earnings ratio of -176.13 and a beta of 0.39.

About United States Cellular

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.