T-Mobile US (NASDAQ:TMUS) Stock Gets Price Target Trim from TD Cowen

Key Points

• TD Cowen lowered T-Mobile US’s price target from $260 to $258 while maintaining a “buy” rating, implying approximately 74% upside from the reported $148.32 share price.
• Analyst sentiment remains broadly positive: 21 analysts rate the stock a Buy and six a Hold, producing a consensus “Moderate Buy” rating and an average price target of $241.79.
• T-Mobile exceeded quarterly expectations, reporting $3.22 in EPS versus $2.89 expected and $23.58 billion in revenue, up 7.4% year over year. However, moderated postpaid-account growth and a narrowed profit outlook remain potential concerns.

T-Mobile US (NASDAQ:TMUS - Get Free Report) had its price objective dropped by equities researchers at TD Cowen from $260.00 to $258.00 in a research note issued to investors on Thursday, Benzinga reports. The firm presently has a "buy" rating on the Wireless communications provider's stock. TD Cowen's target price would indicate a potential upside of 73.95% from the stock's current price.

Several other analysts have also commented on TMUS. Raymond James Financial raised shares of T-Mobile US from a "market perform" rating to an "outperform" rating and set a $170.00 target price for the company in a research note on Monday, October 12th. Bank of America raised T-Mobile US from a "neutral" rating to a "buy" rating and set a $220.00 price target on the stock in a report on Monday, July 6th. Weiss Ratings reiterated a "hold (c)" rating on shares of T-Mobile US in a research report on Friday, September 11th. Barclays reduced their price objective on T-Mobile US from $215.00 to $200.00 and set an "overweight" rating for the company in a research note on Tuesday, September 29th. Finally, The Goldman Sachs Group decreased their target price on T-Mobile US from $230.00 to $211.00 and set a "buy" rating on the stock in a report on Friday, September 25th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $241.79.

T-Mobile US Price Performance

TMUS stock traded up $0.24 during trading hours on Thursday, hitting $148.32. 3,608,260 shares of the stock traded hands, compared to its average volume of 5,690,916. The stock has a 50-day simple moving average of $168.32 and a 200 day simple moving average of $187.39. The company has a market cap of $159.09 billion, a P/E ratio of 15.52, a P/E/G ratio of 0.91 and a beta of 0.33. T-Mobile US has a one year low of $143.75 and a one year high of $224.75. The company has a current ratio of 0.92, a quick ratio of 0.83 and a debt-to-equity ratio of 1.48.

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

Insider Buying and Selling

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

Institutional Trading of T-Mobile US

Institutional investors have recently added to or reduced their stakes in the business. Main Street Group LTD bought a new stake in T-Mobile US in the first quarter worth approximately $25,000. Paladin Partners LLC bought a new position in shares of T-Mobile US during the 2nd quarter worth approximately $25,000. Dunhill Financial LLC bought a new position in shares of T-Mobile US during the 2nd quarter worth approximately $27,000. Highland Investment Advisors LLC acquired a new stake in shares of T-Mobile US during the 2nd quarter worth approximately $30,000. Finally, Sachetta LLC grew its position in shares of T-Mobile US by 52.9% during the 1st quarter. Sachetta LLC now owns 159 shares of the Wireless communications provider's stock worth $33,000 after buying an additional 55 shares during the period. 42.49% of the stock is currently owned by institutional investors and hedge funds.

More T-Mobile US News

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 reached $23.58 billion, up 7.4% year over year and above estimates. Net income reportedly rose 27% to $3.5 billion. Reuters earnings article
• Positive Sentiment: Customer quality and spending trends were favorable: Strong postpaid account growth, premium-plan adoption, higher average revenue per account and service-revenue growth supported profitability. Management raised its full-year free-cash-flow and EBITDA outlook, improving the investment case. Zacks earnings article
• Positive Sentiment: Analyst support remains strong: Scotiabank raised its price target to $214 and maintained a “sector outperform” rating. KeyCorp lowered its target to $240 but retained an “overweight” rating, leaving both targets well above the current trading level.
• Positive Sentiment: T-Mobile’s customizable T-Mix plans, network-quality recognition and continued 5G and broadband expansion could support customer retention and long-term growth.
• Neutral Sentiment: Leadership transition: Former CEO Mike Sievert is stepping down from T-Mobile’s board and vice-chair role in November. The planned transition appears orderly, but it removes a long-serving executive from board oversight. Board transition article
• Negative Sentiment: Management expects full-year postpaid account additions around the midpoint of its previous range and narrowed its profit forecast, tempering the otherwise strong earnings report.
• Negative Sentiment: The CEO ruled out an MVNO or other SpaceX partnership, while reports that Deutsche Telekom has slowed potential merger discussions add strategic uncertainty and remove possible near-term catalysts. SpaceX partnership article

T-Mobile US Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.