The stock of United States Cellular Corporation (NYSE: USM) has increased by 27.67 when compared to last closing price of 35.99. Despite this, the company has experienced a 23.32% gain in its stock price over the last five trading sessions. Reuters reported 2024-05-09 that T-Mobile and Verizon Communications are in talks to buy parts of United States Cellular in separate transactions, the Wall Street Journal reported on Thursday.
Is It Worth Investing in United States Cellular Corporation (NYSE: USM) Right Now?
The price-to-earnings ratio for United States Cellular Corporation (NYSE: USM) is above average at 66.67x. The 36-month beta value for USM is also noteworthy at 0.41. There are mixed opinions on the stock, with 1 analysts rating it as a “buy,” 1 rating it as “overweight,” 5 rating it as “hold,” and 0 rating it as “sell.”
The public float for USM is 13.93M, and at present, short sellers hold a 8.75% of that float. The average trading volume of USM on May 10, 2024 was 238.37K shares.
USM’s Market Performance
USM stock saw an increase of 23.32% in the past week, with a monthly gain of 30.02% and a quarterly increase of 10.19%. The volatility ratio for the week is 13.42%, and the volatility levels for the last 30 days are 5.55% for United States Cellular Corporation (USM). The simple moving average for the past 20 days is 28.90% for USM’s stock, with a 17.37% simple moving average for the past 200 days.
Analysts’ Opinion of USM
Many brokerage firms have already submitted their reports for USM stocks, with Wells Fargo repeating the rating for USM by listing it as a “Equal Weight.” The predicted price for USM in the upcoming period, according to Wells Fargo is $38 based on the research report published on August 09, 2023 of the previous year 2023.
JP Morgan, on the other hand, stated in their research note that they expect to see USM reach a price target of $52. The rating they have provided for USM stocks is “Overweight” according to the report published on August 08th, 2023.
Wells Fargo gave a rating of “Underweight” to USM, setting the target price at $20 in the report published on January 10th of the previous year.
USM Trading at 29.11% from the 50-Day Moving Average
After a stumble in the market that brought USM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -5.20% of loss for the given period.
Volatility was left at 5.55%, however, over the last 30 days, the volatility rate increased by 13.42%, as shares surge +28.75% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +35.31% upper at present.
During the last 5 trading sessions, USM rose by +23.32%, which changed the moving average for the period of 200-days by +146.12% in comparison to the 20-day moving average, which settled at $36.16. In addition, United States Cellular Corporation saw 10.62% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for USM
Current profitability levels for the company are sitting at:
- 0.04 for the present operating margin
- 0.51 for the gross margin
The net margin for United States Cellular Corporation stands at 0.02. The total capital return value is set at 0.02. Equity return is now at value 1.30, with 0.55 for asset returns.
Based on United States Cellular Corporation (USM), the company’s capital structure generated 0.41 points at debt to capital in total, while cash flow to debt ratio is standing at 0.32. The debt to equity ratio resting at 0.68. The interest coverage ratio of the stock is 1.58.
Currently, EBITDA for the company is 978.0 million with net debt to EBITDA at 3.91. When we switch over and look at the enterprise to sales, we see a ratio of 1.99. The receivables turnover for the company is 4.15for trailing twelve months and the total asset turnover is 0.36. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.67.
Conclusion
In summary, United States Cellular Corporation (USM) has had a better performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
