United States Cellular Corporation (NYSE:USM) operates as a wireless telecommunications service provider in the United States.
Insider selling during the last 30 days
Here is a table of United States Cellular's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Steven Campbell||CFO||May 9||3,570||No||406 shares||89.8%|
|Michael Irizarry||CTO||May 6-7||10,571||No||1 share + 59,769 options||15.0%|
|Harry Harczak||Director||May 5||1,200||No||7,520 shares||13.8%|
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.
|Month||Insider selling / shares||Insider buying / shares|
There have been 65,309 shares sold, and there have been zero shares purchased by insiders since January 2013.
United States Cellular reported the first-quarter financial results on May 2 with the following highlights:
|Net income||$19.5 million|
The three insiders sold their shares after these results.
United States Cellular has declining revenues currently.
United States Cellular expects capital expenditures for 2014 to be approximately $640 million.
|Qtrly Rev Growth (yoy):||-0.14||0.01|
|PEG (5 yr expected):||-14.29||N/A|
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.
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.
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.