JP Morgan slashes price target on United States Cellular Corporation [USM] – find out why.

United States Cellular Corporation [NYSE: USM] traded at a high on 12/23/22, posting a 4.30 gain after which it closed the day’ session at $20.62. The company report on December 1, 2022 that UScellular announces appointment of two new board members.

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United States Cellular Corporation (NYSE: USM) announced that Douglas W. Chambers and James W. Butman have been appointed to its Board of Directors effective January 1, 2023.  This follows on the previously announced appointment of Xavier D. Williams, CEO of Network Wireless LLC, to the Board effective January 1, 2023, and the continued service on the Board by Deirdre C. Drake, Executive Vice President, Chief People Officer and Head of Communications, following her retirement as an officer of UScellular on January 2, 2023.

Mr. Chambers is currently executive vice president, chief financial officer and treasurer for UScellular. He has more than 25 years of financial experience, and he joined UScellular from TDS, where he most recently served as senior vice president of finance and chief accounting officer. Mr. Chambers is a certified public accountant and a board member of the Southwest Wisconsin Chapter of the American Red Cross. He earned a bachelor’s degree in accounting from the University of Wisconsin-Madison and an MBA from the Kellogg School of Management at Northwestern University in Evanston, Ill.

The results of the trading session contributed to over 287415 shares changing hands. Over the past one week, the price volatility of United States Cellular Corporation stands at 3.37% while the volatility over the past one month is 4.08%.

The market cap for USM stock reached $1.68 billion, with 85.00 million shares outstanding and 14.54 million shares in the current float. Compared to the average trading volume of 241.78K shares, USM reached a trading volume of 287415 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about United States Cellular Corporation [USM]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for USM shares is $33.40 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on USM stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

JP Morgan have made an estimate for United States Cellular Corporation shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on November 08, 2022. The new note on the price target was released on November 07, 2022, representing the official price target for United States Cellular Corporation stock. Previously, the target price had yet another raise to $37, while Morgan Stanley analysts kept a Equal-Weight rating on USM stock.

The Average True Range (ATR) for United States Cellular Corporation is set at 0.80, with the Price to Sales ratio for USM stock in the period of the last 12 months amounting to 0.40. The Price to Book ratio for the last quarter was 0.38. Price to Free Cash Flow for USM in the course of the last twelve months was 15.32 with Quick ratio for the last quarter at 1.30.

How has USM stock performed recently?

United States Cellular Corporation [USM] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.18. With this latest performance, USM shares dropped by -6.44% in over the last four-week period, additionally sinking by -31.61% over the last 6 months – not to mention a drop of -35.72% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for USM stock in for the last two-week period is set at 45.48, with the RSI for the last a single of trading hit 53.68, and the three-weeks RSI is set at 41.89 for United States Cellular Corporation [USM]. The present Moving Average for the last 50 days of trading for this stock 23.66, while it was recorded at 19.94 for the last single week of trading, and 27.84 for the last 200 days.

United States Cellular Corporation [USM]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and United States Cellular Corporation [USM] shares currently have an operating margin of +4.63 and a Gross Margin at +34.86. United States Cellular Corporation’s Net Margin is presently recorded at +3.76.

Return on Equity for this stock inclined to 3.46, with Return on Assets sitting at 1.48.

United States Cellular Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.50.

Earnings analysis for United States Cellular Corporation [USM]

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for USM. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for United States Cellular Corporation go to 10.80%.

Insider trade positions for United States Cellular Corporation [USM]

There are presently around $284 million, or 26.60% of USM stock, in the hands of institutional investors. The top three institutional holders of USM stocks are: DIMENSIONAL FUND ADVISORS LP with ownership of 2,184,908, which is approximately 6.682% of the company’s market cap and around 72.11% of the total institutional ownership; BLACKROCK INC., holding 1,793,470 shares of the stock with an approximate value of $36.98 million in USM stocks shares; and VANGUARD GROUP INC, currently with $31.52 million in USM stock with ownership of nearly 1.256% of the company’s market capitalization.

Positions in United States Cellular Corporation stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 65 institutional holders increased their position in United States Cellular Corporation [NYSE:USM] by around 584,960 shares. Additionally, 71 investors decreased positions by around 970,276 shares, while 25 investors held positions by with 12,197,792 shares. The mentioned changes placed institutional holdings at 13,753,028 shares, according to the latest SEC report filing. USM stock had 19 new institutional investments in for a total of 202,243 shares, while 21 institutional investors sold positions of 154,745 shares during the same period.


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