United States Cellular (NYSE:USM) Shares Gap Up - Should You Buy?

Key Points

• United States Cellular Corporation's shares gapped up from a previous close of $71.50 to an opening price of $76.00, and last traded at $76.66 with a trading volume of 177,047 shares.
• Several analysts have revised their price targets, with Raymond James setting a target of $78.00 (down from $83.00) and JPMorgan lowering theirs from $88.00 to $85.00.
• The company reported a loss in its latest quarterly earnings, with an EPS of $0.21, missing estimates, and a revenue of $891 million, below analyst expectations of $924.90 million.
• Institutional investors control 18.03% of United States Cellular's stock, with significant acquisitions made by firms like Lazard Asset Management and Harbor Capital Advisors.

United States Cellular Corporation (NYSE:USM - Get Free Report) shares gapped up before the market opened on Friday . The stock had previously closed at $71.50, but opened at $76.00. United States Cellular shares last traded at $76.66, with a volume of 177,047 shares.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. Raymond James Financial reissued an "outperform" rating and issued a $78.00 price objective (down from $83.00) on shares of United States Cellular in a report on Monday, May 5th. JPMorgan Chase & Co. decreased their price objective on United States Cellular from $88.00 to $85.00 and set an "overweight" rating for the company in a report on Wednesday, May 28th.

United States Cellular Trading Up 3.4%

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 company has a fifty day moving average of $63.81 and a two-hundred day moving average of $64.61. The stock has a market capitalization of $6.28 billion, a price-to-earnings ratio of -160.65 and a beta of 0.35.

United States Cellular (NYSE:USM - Get Free Report) last issued its quarterly earnings results on Friday, May 2nd. The Wireless communications provider reported $0.21 earnings per share for the quarter, missing the consensus estimate of $0.37 by ($0.16). United States Cellular had a positive return on equity of 1.36% and a negative net margin of 1.05%. The company had revenue of $891.00 million for the quarter, compared to analyst estimates of $924.90 million. On average, research analysts expect that United States Cellular Corporation will post 0.57 EPS for the current year.

Institutional Investors Weigh In On United States Cellular

A number of hedge funds and other institutional investors have recently bought and sold shares of USM. Quarry LP acquired a new stake in United States Cellular in the first quarter valued at $55,000. Lazard Asset Management LLC lifted its holdings in United States Cellular by 1,837.5% in the fourth quarter. Lazard Asset Management LLC now owns 930 shares of the Wireless communications provider's stock valued at $58,000 after acquiring an additional 882 shares during the period. BNP Paribas Financial Markets lifted its holdings in United States Cellular by 37.6% in the fourth quarter. BNP Paribas Financial Markets now owns 1,657 shares of the Wireless communications provider's stock valued at $104,000 after acquiring an additional 453 shares during the period. Harbor Capital Advisors Inc. acquired a new stake in United States Cellular in the first quarter valued at $176,000. Finally, Mirae Asset Global Investments Co. Ltd. acquired a new stake in United States Cellular in the first quarter valued at $195,000. Institutional investors and hedge funds own 18.03% of the company's stock.

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.

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