T-Mobile US (NASDAQ:TMUS) Stock Falls 6.9% – Time to Sell?

Shares of T-Mobile US, Inc. (NASDAQ:TMUS) dropped 6.9% during trading on Friday. The company traded as low as $147.88 and last traded at $147.8750. 5,349,472 shares changed hands during trading, a decline of 5% from the average session volume of 5,652,503 shares. The stock had previously closed at $158.79.

Key Stories Impacting T-Mobile US

Here are the key news stories impacting T-Mobile US this week:

• Positive Sentiment: Erste Group Bank modestly raised its fiscal 2027 EPS forecast for T-Mobile to $13.81 from $13.79, indicating slightly improved longer-term earnings expectations.
• Neutral Sentiment: Analysts expect T-Mobile’s third-quarter results to show continued subscriber additions, device-promotion activity and broadband growth. However, rising costs and intense competition could limit profitability. Can Healthy Revenue Growth Boost T-Mobile’s Q3 Earnings?
• Neutral Sentiment: Wall Street estimates for key third-quarter operating metrics provide a benchmark for the October 28 earnings release, with subscriber growth, service revenue and profitability likely to determine the stock’s next move. Ahead of T-Mobile Q3 Earnings
• Negative Sentiment: SpaceX is reportedly seeking access to at least 80,000 U.S. cell sites as it works toward becoming a fourth nationwide wireless carrier. The prospect of a well-funded competitor using satellite connectivity and leased tower capacity raises concerns about pricing pressure, customer losses and higher promotional spending for T-Mobile. T-Mobile Shares Lose Signal as SpaceX Seeks 80,000 Cell Sites
• Negative Sentiment: Citi said established wireless carriers, including T-Mobile, face additional valuation risk from SpaceX’s wireless expansion. SpaceX’s reported spectrum purchases and discussions with tower providers have intensified fears that competition could disrupt the U.S. wireless market. Wireless Stocks Face Valuation Pressure From SpaceX

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. Royal Bank Of Canada dropped their price target on shares of T-Mobile US from $240.00 to $230.00 and set an “outperform” rating on the stock in a research note on Monday, July 20th. Scotiabank decreased their target price on T-Mobile US from $217.00 to $212.00 and set a “sector outperform” rating on the stock in a report on Friday, October 9th. UBS Group lowered their target price on T-Mobile US from $255.00 to $235.00 and set a “buy” rating on the stock in a research report on Friday, July 24th. Wells Fargo & Company reduced their price target on T-Mobile US from $170.00 to $169.00 and set an “equal weight” rating for the company in a research report on Friday, July 24th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of T-Mobile US in a research note on Friday, September 11th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $244.65.

T-Mobile US Trading Down 7.3%

The firm has a market capitalization of $157.94 billion, a P/E ratio of 15.44, a PEG ratio of 0.96 and a beta of 0.33. The company has a quick ratio of 0.83, a current ratio of 0.92 and a debt-to-equity ratio of 1.48. The stock has a fifty day simple moving average of $171.10 and a 200 day simple moving average of $180.85.

T-Mobile US (NASDAQ:TMUS) last released its earnings results on Thursday, July 23rd. The Wireless communications provider reported $2.99 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.59 by $0.40. The firm had revenue of $22.79 billion during the quarter, compared to analysts’ expectations of $22.95 billion. T-Mobile US had a return on equity of 20.16% and a net margin of 11.45%. The firm’s revenue was up 7.9% on a year-over-year basis. During the same quarter last year, the business posted $2.84 earnings per share. As a group, research analysts forecast that T-Mobile US, Inc. will post 11.17 EPS for the current year.

T-Mobile US Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Wednesday, November 25th will be issued a $1.17 dividend. This represents a $4.68 annualized dividend and a dividend yield of 3.2%. This is a boost from T-Mobile US’s previous quarterly dividend of $1.02. The ex-dividend date of this dividend is Wednesday, November 25th. T-Mobile US’s payout ratio is presently 42.72%.

Insiders Place Their Bets

In other T-Mobile US news, CAO Daniel James Drobac sold 772 shares of T-Mobile US stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $178.33, for a total value of $137,670.76. Following the sale, the chief accounting officer directly owned 35,118 shares in the company, valued at approximately $6,262,592.94. The trade was a 2.15% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.32% of the company’s stock.

Institutional Investors Weigh In On T-Mobile US

A number of hedge funds have recently made changes to their positions in the company. Essex Financial Services Inc. boosted its stake in T-Mobile US by 3.5% during the first quarter. Essex Financial Services Inc. now owns 1,551 shares of the Wireless communications provider’s stock valued at $326,000 after buying an additional 53 shares during the last quarter. Sachetta LLC increased its stake in T-Mobile US by 52.9% in the 1st quarter. Sachetta LLC now owns 159 shares of the Wireless communications provider’s stock worth $33,000 after acquiring an additional 55 shares during the last quarter. Legacy Wealth Asset Management LLC raised its holdings in shares of T-Mobile US by 1.2% during the 2nd quarter. Legacy Wealth Asset Management LLC now owns 4,844 shares of the Wireless communications provider’s stock worth $812,000 after acquiring an additional 56 shares in the last quarter. Harbor Investment Advisory LLC raised its holdings in shares of T-Mobile US by 2.6% during the 1st quarter. Harbor Investment Advisory LLC now owns 2,351 shares of the Wireless communications provider’s stock worth $494,000 after acquiring an additional 60 shares in the last quarter. Finally, Heartland Bank & Trust Co raised its holdings in shares of T-Mobile US by 3.5% during the 1st quarter. Heartland Bank & Trust Co now owns 1,841 shares of the Wireless communications provider’s stock worth $387,000 after acquiring an additional 62 shares in the last quarter. 42.49% of the stock is currently owned by hedge funds and other institutional investors.

About T-Mobile US

T-Mobile US, Inc (NASDAQ: TMUS) is a wireless communications company that provides mobile voice, messaging and data services to consumers, businesses and government customers in the United States, Puerto Rico and the U.S. Virgin Islands. Its offerings include postpaid and prepaid wireless plans, connected devices, broadband internet and other communications services.

The company operates a nationwide wireless network, including 5G services, and sells smartphones, tablets, connected devices and related accessories through retail stores, online channels and third-party distributors.