Millicom (TIGO) Shares Soar 0.54% to 52-Week High on Strong EBITDA Growth

Millicom International Cellular (TIGO) shares rose to their highest level since October 2021 today, with an intraday gain of 0.54%.

The strategy of buying TIGO shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 4.5% annualized gain. However, the strategy underperformed the market, as the S&P 500 delivered a higher annualized return of 7.2% over the same period. The Sharpe ratio stood at 0.7, indicating a reasonable risk-adjusted return. The strategy's beta of 1.1 suggests it was slightly more volatile than the market. Overall, while the strategy provided a decent return, it was marginally beaten by the market and had moderate volatility.

Millicom's stock price has been influenced by several key factors recently. Despite a revenue shortfall, the company reported a 0.6% increase in adjusted EBITDA to $636 million, reflecting a 6.9% organic growth. This strong financial performance has contributed to the stock reaching its 52-week high.

Additionally, the potential merger between Tigo Colombia and Movistar Colombia, which is being acquired by Millicom's local operator TigoUne, could lead to increased market concentration. This development may affect Millicom's competitive position and subsequently impact its stock price. Investors are closely monitoring these developments as they could have significant implications for the company's future performance.