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Summary

  • 3 insiders sold United States Cellular stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • All 3 of these insiders decreased their holdings by more than 10%.

United States Cellular Corporation (NYSE:USM) operates as a wireless telecommunications service provider in the United States.

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Insider selling during the last 30 days

Here is a table of United States Cellular's insider activity during the last 30 days.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Steven CampbellCFOMay 93,570No406 shares89.8%
Michael IrizarryCTOMay 6-710,571No1 share + 59,769 options15.0%
Harry HarczakDirectorMay 51,200No7,520 shares13.8%

There have been 15,341 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of United States Cellular's insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
May 201415,3410
April 20141,2740
March 201400
February 201400
January 201400
December 201300
November 20131,2000
October 201300
September 201300
August 201346,3940
July 201300
June 201300
May 201300
April 20131,1000
March 201300
February 201300
January 201300

There have been 65,309 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

United States Cellular reported the first-quarter financial results on May 2 with the following highlights:

Revenue$925.8 million
Net income$19.5 million
Cash$438.6 million
Debt$878.1 million

The three insiders sold their shares after these results.

United States Cellular has declining revenues currently.

Outlook

United States Cellular expects capital expenditures for 2014 to be approximately $640 million.

Competition

United States Cellular's competitors include Sprint Corporation (NYSE:S). Here is a table comparing these two companies.

CompanyUSMS
Market Cap:3.50B34.79B
Employees:6,70025,000
Qtrly Rev Growth (yoy):-0.140.01
Revenue:3.76B35.58B
Gross Margin:0.530.44
EBITDA:354.50M5.68B
Operating Margin:-0.070.01
Net Income:154.61M-2.52B
EPS:1.82-0.73
P/E:22.87N/A
PEG (5 yr expected):-14.29N/A
P/S:0.940.97

United States Cellular is trading at a similar P/S ratio to Sprint. In Sprint, there have been 474,806 shares sold, and there have been zero shares purchased by insiders this year. Only United States Cellular has seen intensive insider selling during the last 30 days.

Conclusion

There have been three different insiders selling United States Cellular, and there have not been any insiders buying United States Cellular during the last 30 days. All three of these insiders decreased their holdings by more than 10%. United States Cellular has an insider ownership of 74.88%.

United States Cellular has a $31 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $31 price target. I would place a stop loss at $49, which is the five-year high. The two main reasons for the proposed short entry are a bearish Point & Figure chart, and the intensive insider-selling activity.

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Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in USM over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Source: United States Cellular: 3 Different Insiders Have Sold Shares This Month