T-Mobile US (NASDAQ:TMUS) Stock Gets Price Target Reduction from JPMorgan Chase & Co.

Key Points

• JPMorgan cut T-Mobile US’s price target from $260 to $235 while maintaining an “overweight” rating, implying roughly 59.6% upside from the prior close.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus and average price target of $238.25 despite several firms trimming targets.
• T-Mobile shares fell 0.5% to $147.29, even as the company’s latest results beat expectations with quarterly EPS of $3.22 versus $2.89 expected and revenue of $23.58 billion.

T-Mobile US (NASDAQ:TMUS - Get Free Report) had its price target decreased by investment analysts at JPMorgan Chase & Co. from $260.00 to $235.00 in a research note issued on Thursday, Benzinga reports. The firm currently has an "overweight" rating on the Wireless communications provider's stock. JPMorgan Chase & Co.'s target price points to a potential upside of 59.55% from the company's previous close.

Several other analysts have also weighed in on TMUS. TD Cowen decreased their price target on T-Mobile US from $260.00 to $258.00 and set a "buy" rating on the stock in a report on Thursday. Scotiabank lifted their price objective on shares of T-Mobile US from $212.00 to $214.00 and gave the stock a "sector outperform" rating in a research note on Thursday. Benchmark dropped their price objective on shares of T-Mobile US from $295.00 to $280.00 and set a "buy" rating for the company in a research note on Friday, July 24th. KeyCorp cut their price objective on shares of T-Mobile US from $250.00 to $240.00 and set an "overweight" rating on the stock in a research report on Thursday. Finally, Moffett Nathanson raised their target price on shares of T-Mobile US from $242.00 to $246.00 and gave the stock a "buy" rating in a report on Tuesday, September 22nd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $238.25.

T-Mobile US Trading Down 0.5%

TMUS traded down $0.79 on Thursday, hitting $147.29. The company had a trading volume of 7,191,076 shares, compared to its average volume of 5,708,900. The business's fifty day simple moving average is $168.32 and its 200 day simple moving average is $187.39. The company has a quick ratio of 0.83, a current ratio of 0.92 and a debt-to-equity ratio of 1.48. T-Mobile US has a 12-month low of $143.75 and a 12-month high of $224.75. The company has a market cap of $157.99 billion, a PE ratio of 15.42, a PEG ratio of 0.91 and a beta of 0.33.

T-Mobile US (NASDAQ:TMUS - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The Wireless communications provider reported $3.22 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.89 by $0.33. The business had revenue of $23.58 billion for the quarter, compared to the consensus estimate of $23.15 billion. T-Mobile US had a return on equity of 20.16% and a net margin of 11.45%. The company's quarterly revenue was up 7.4% compared to the same quarter last year. During the same period in the prior year, the business posted $2.41 earnings per share. Equities research analysts expect that T-Mobile US will post 11.17 EPS for the current year.

Insider Buying and Selling

In other news, CAO Daniel James Drobac sold 772 shares of the firm's stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $178.33, for a total transaction of $137,670.76. Following the transaction, the chief accounting officer directly owned 35,118 shares of the company's stock, valued at approximately $6,262,592.94. This trade represents a 2.15% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.32% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On T-Mobile US

A number of institutional investors and hedge funds have recently bought and sold shares of the company. BlackRock Inc. bought a new position in shares of T-Mobile US in the 2nd quarter worth $6,625,275,000. Bank of New York Mellon Corp bought a new position in T-Mobile US in the second quarter worth about $839,194,000. Bank of America Corp DE purchased a new stake in shares of T-Mobile US during the second quarter valued at about $758,977,000. Legal & General Group Plc purchased a new stake in shares of T-Mobile US during the second quarter valued at about $583,675,000. Finally, Deutsche Bank AG bought a new stake in shares of T-Mobile US in the 2nd quarter valued at about $349,928,000. 42.49% of the stock is owned by institutional investors.

T-Mobile US News Summary

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

• Positive Sentiment: Q3 results exceeded expectations: T-Mobile reported adjusted earnings of $3.22 per share versus the $2.89 consensus, while revenue rose 7.4% year over year to $23.58 billion, above the $23.15 billion estimate. Net income increased 27% to approximately $3.5 billion, helped by postpaid account growth, premium-plan adoption and higher average revenue per account. T-Mobile raises annual free cash flow forecast as premium plans gain traction
• Positive Sentiment: Raised outlook: Management increased its full-year free-cash-flow and EBITDA/profit expectations as premium plans and customer spending remained strong. The company also highlighted broadband expansion, AI opportunities and its customizable T-Mix plans as potential growth drivers. T-Mobile Q3 Earnings Call Highlights Growth and Higher Outlook
• Positive Sentiment: Analysts remain bullish: Scotiabank raised its price target to $214 with a “sector outperform” rating. TD Cowen maintained a “buy” rating despite trimming its target to $258, and KeyCorp kept an “overweight” rating with a $240 target. These targets imply substantial potential upside from current levels.
• Neutral Sentiment: Board transition: Former CEO Mike Sievert is leaving T-Mobile’s board and vice-chair role, a planned transition that removes a prominent executive from governance but does not represent an operational change to the current CEO’s role. Mike Sievert steps down from T-Mobile US board
• Negative Sentiment: Growth and strategic concerns remain: The company placed postpaid net-account additions near the midpoint of its existing forecast and narrowed parts of its annual profit outlook. The CEO also rejected an MVNO partnership with SpaceX, leaving investors focused on the possibility that SpaceX could develop a competing terrestrial network. Reports that Deutsche Telekom slowed potential merger discussions add further uncertainty. T-Mobile US CEO quashes SpaceX MVNO talk

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.

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