United States Cellular's 15min chart shows Bollinger Bands expanding downward, bearish Marubozu.

Wednesday, Jun 4, 2025 10:52 am ET1min read

According to the 15-minute chart for United States Cellular, the Bollinger Bands are currently expanding downward, indicating a bearish Marubozu pattern as of June 4, 2023 at 10:45. This suggests that sellers are currently driving the market trend, exerting control over the market, and implying that bearish momentum is likely to persist.

JP Morgan analyst Sebastiano Petti has maintained an Overweight rating on United States Cellular (USM) while adjusting the price forecast from $88 to $85. The analyst anticipates significant capital returns for shareholders, estimating up to $28-$30 per share in special dividends by mid-2026 [1].

The primary catalyst for this optimism is the anticipated acquisition of US Cellular's wireless operations by T-Mobile. JP Morgan expects the deal to finalize by July 1, 2025, aligning with a mid-2025 close. The analyst projects that the T-Mobile deal alone could contribute $9-$11 per share in dividends, with additional payouts from spectrum sales to AT&T ($10 per share) and Verizon ($9 per share) [1].

Petti also noted that USM is focusing on cost optimization and expects industry-wide competition to impact its 2025 financials. Despite this, he raised the 2025 service revenue estimate to $2.95 billion due to higher postpaid ARPU, projected to grow 1.2% year-over-year to $52.44. However, the analyst lowered the 2025 EBITDA estimate by 3% to $970 million, resulting in margins of 26.4% [1].

USM shares are currently trading at $62.80, down 0.76% from the previous close [1]. The 15-minute chart for USM as of June 4, 2025, at 10:45, shows Bollinger Bands expanding downward, indicating a bearish Marubozu pattern. This suggests that sellers are currently driving the market trend, exerting control over the market, and implying that bearish momentum is likely to persist [2].

References:
[1] https://www.benzinga.com/analyst-ratings/price-target/25/05/45655396/us-cellular-deal-could-unlock-major-payouts-jpmorgan-expects-t-mobile-acquisition-to-finalize-by-july
[2] (Provided writing topic)

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