United States Cellular's stock has surged despite losing postpaid device subscriptions, focusing on spectrum sales.

From Nasdaq: 2024-11-14 07:15:00

In 2024, United States Cellular Corporation (NYSE: USM) stock price has surged by almost 53%, despite losing around 96,000 postpaid device subscriptions. The company’s strategy involves selling spectrum assets to major telecom companies like T-Mobile, Verizon, and AT&T, with a pending deal for T-Mobile to acquire all its wireless operations.

Spectrum refers to radio frequencies crucial for wireless data transmission. United States Cellular has been selling its spectrum assets, particularly C-Band spectrum, which offers a middle ground for providing 5G services. The value of C-Band spectrum has dropped by 88% since 2021, potentially impacting the worth of United States Cellular’s remaining assets.

United States Cellular may need to explore other catalysts for growth, as selling more spectrum may not significantly impact its financials. The pending deal with T-Mobile could boost shares if approved, while potential tower asset sales and reduced merger enforcement actions under the Biden Administration could also drive stock prices higher. Analysts are bullish on the stock, with price targets suggesting a 35% upside.



Read more at Nasdaq:: Can United States Cellular Ride Higher on Its Spectrum Strategy?