T-Mobile US (NASDAQ:TMUS) Reaches New 12-Month Low – Here’s Why

Shares of T-Mobile US, Inc. (NASDAQ:TMUS) reached a new 52-week low on Monday . The stock traded as low as $173.54 and last traded at $172.0490, with a volume of 1104249 shares. The stock had previously closed at $182.68.

T-Mobile US News Roundup

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

• Positive Sentiment: One bullish article argues T-Mobile remains an attractive long-term value play, citing strong quarterly operating trends, 6% year-over-year postpaid account growth, 3.9% ARPA growth, and a roughly 10% adjusted free cash flow yield. The piece also says the US Cellular acquisition should add spectrum, customers, and towers, which could strengthen T-Mobile’s competitive position. Article Title
• Neutral Sentiment: T-Mobile was also mentioned in coverage calling it a “strong value stock” and in brokerage commentary showing a “Moderate Buy” consensus, which supports the longer-term investment case but is unlikely to be a major near-term catalyst. Article Title
• Negative Sentiment: Recent selling has been driven by worries that SpaceX/Starlink could enter the mobile market and intensify competition for major wireless carriers, including T-Mobile. Investors are also digesting reports that T-Mobile is changing legacy plans, which could raise bills for some customers and create churn or backlash. Article Title
• Negative Sentiment: Another headwind is that T-Mobile was removed from the Russell Top 50 Index and Russell 1000 Dynamic Index, which may have added technical selling pressure and reinforced the negative tone around the stock. Article Title

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on TMUS shares. Royal Bank Of Canada lowered their price objective on T-Mobile US from $255.00 to $240.00 and set an “outperform” rating on the stock in a research note on Wednesday, April 29th. Morgan Stanley initiated coverage on shares of T-Mobile US in a research note on Thursday, April 16th. They issued an “overweight” rating and a $260.00 target price for the company. Scotiabank lowered their price target on shares of T-Mobile US from $266.00 to $263.00 and set a “sector outperform” rating on the stock in a research report on Wednesday, April 29th. UBS Group dropped their price target on shares of T-Mobile US from $300.00 to $255.00 and set a “buy” rating on the stock in a research note on Monday, June 22nd. Finally, Deutsche Bank Aktiengesellschaft cut their price objective on shares of T-Mobile US from $300.00 to $285.00 and set a “buy” rating for the company in a report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $260.27.

T-Mobile US Trading Down 3.6%

The company has a debt-to-equity ratio of 1.58, a quick ratio of 0.97 and a current ratio of 1.09. The stock has a market cap of $181.52 billion, a P/E ratio of 17.84, a P/E/G ratio of 1.01 and a beta of 0.31. The stock has a 50-day moving average price of $187.18 and a 200-day moving average price of $197.50.

T-Mobile US (NASDAQ:TMUS) last posted its quarterly earnings data on Tuesday, April 28th. The Wireless communications provider reported $2.27 earnings per share for the quarter, topping the consensus estimate of $2.01 by $0.26. T-Mobile US had a net margin of 11.65% and a return on equity of 19.47%. The company had revenue of $23.11 billion for the quarter, compared to analysts’ expectations of $22.98 billion. During the same period in the prior year, the business earned $2.58 earnings per share. T-Mobile US’s revenue for the quarter was up 10.6% compared to the same quarter last year. On average, equities research analysts expect that T-Mobile US, Inc. will post 10.65 EPS for the current year.

T-Mobile US Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Friday, August 28th will be given a $1.02 dividend. The ex-dividend date is Friday, August 28th. This represents a $4.08 annualized dividend and a yield of 2.4%. T-Mobile US’s payout ratio is 43.40%.

Insider Activity at T-Mobile US

In other T-Mobile US news, insider Michael J. Katz sold 5,000 shares of the firm’s stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $195.81, for a total transaction of $979,050.00. Following the sale, the insider owned 181,930 shares in the company, valued at $35,623,713.30. This trade represents a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Andre Almeida purchased 5,097 shares of the company’s stock in a transaction on Friday, May 1st. The shares were purchased at an average cost of $196.18 per share, with a total value of $999,929.46. Following the purchase, the insider owned 44,850 shares of the company’s stock, valued at approximately $8,798,673. The trade was a 12.82% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.32% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of TMUS. Sapient Capital LLC purchased a new position in shares of T-Mobile US during the first quarter worth approximately $337,000. Western Wealth Management LLC boosted its stake in shares of T-Mobile US by 269.5% in the 1st quarter. Western Wealth Management LLC now owns 4,519 shares of the Wireless communications provider’s stock valued at $949,000 after purchasing an additional 3,296 shares in the last quarter. Pacer Advisors Inc. boosted its stake in shares of T-Mobile US by 1,375.9% in the 1st quarter. Pacer Advisors Inc. now owns 1,755,286 shares of the Wireless communications provider’s stock valued at $368,663,000 after purchasing an additional 1,636,359 shares in the last quarter. First National Bank of Mount Dora Trust Investment Services grew its holdings in shares of T-Mobile US by 34.8% during the 1st quarter. First National Bank of Mount Dora Trust Investment Services now owns 59,958 shares of the Wireless communications provider’s stock valued at $12,593,000 after purchasing an additional 15,495 shares during the last quarter. Finally, Pine Valley Investments Ltd Liability Co grew its holdings in shares of T-Mobile US by 4.2% during the 1st quarter. Pine Valley Investments Ltd Liability Co now owns 6,249 shares of the Wireless communications provider’s stock valued at $1,313,000 after purchasing an additional 254 shares during the last quarter. 42.49% of the stock is currently owned by institutional investors.

T-Mobile US Company Profile

T-Mobile US is a national wireless carrier that provides mobile voice, messaging and data services to consumers, businesses and wholesale customers across the United States, Puerto Rico and the U.S. Virgin Islands. The company operates a nationwide mobile network and offers device sales, equipment financing and support services through retail stores, online channels and distribution partners. T-Mobile positions its products around bundled service plans, device offerings and value-added features for both individual and enterprise customers.

Product offerings include postpaid and prepaid wireless plans under the T-Mobile and Metro by T-Mobile brands, as well as connectivity solutions for small and large businesses.