T-Mobile US (NASDAQ:TMUS) Stock Price Target Lowered at Citigroup

Key Points

• Citigroup lowered T-Mobile US’s price target from $225 to $165 and maintained a “neutral” rating, implying about 11.74% upside from the prior close.
• Despite the downgrade, analyst sentiment remains favorable overall: T-Mobile has a consensus “Moderate Buy” rating and an average price target of $239.29.
• T-Mobile’s latest quarterly results exceeded expectations, with earnings of $3.22 per share versus $2.89 expected and revenue of $23.58 billion, up 7.4% year over year.

T-Mobile US (NASDAQ:TMUS - Get Free Report) had its price objective dropped by equities researchers at Citigroup from $225.00 to $165.00 in a research note issued on Thursday, Benzinga reports. The firm presently has a "neutral" rating on the Wireless communications provider's stock. Citigroup's price target would suggest a potential upside of 11.74% from the stock's previous close.

TMUS has been the subject of several other research reports. Weiss Ratings restated a "hold (c)" rating on shares of T-Mobile US in a report on Friday, September 11th. KeyCorp cut their price target on T-Mobile US from $250.00 to $240.00 and set an "overweight" rating on the stock in a report on Thursday. JPMorgan Chase & Co. cut their price objective on shares of T-Mobile US from $275.00 to $260.00 and set an "overweight" rating on the stock in a research report on Monday, September 21st. UBS Group decreased their price objective on T-Mobile US from $255.00 to $235.00 and set a "buy" rating for the company in a report on Friday, July 24th. Finally, Wolfe Research downgraded shares of T-Mobile US from an "outperform" rating to a "peer perform" rating in a report on Friday, August 14th. One analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $239.29.

T-Mobile US Stock Down 0.3%

Shares of T-Mobile US stock traded down $0.42 during trading on Thursday, reaching $147.66. The stock had a trading volume of 4,668,366 shares, compared to its average volume of 5,694,881. 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 has a 52 week low of $143.75 and a 52 week high of $224.75. The company has a market capitalization of $158.39 billion, a price-to-earnings ratio of 15.50, a P/E/G ratio of 0.91 and a beta of 0.33. The stock has a fifty day moving average price of $168.32 and a two-hundred day moving average price of $187.39.

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

Insiders Place Their Bets

In other news, CAO Daniel James Drobac sold 772 shares of the stock in a transaction dated 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 of the company's stock, valued at approximately $6,262,592.94. This represents a 2.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.32% of the stock is owned by insiders.

Institutional Trading of T-Mobile US

Institutional investors and hedge funds have recently bought and sold shares of the company. Main Street Group LTD purchased a new position in shares of T-Mobile US during the 1st quarter worth approximately $25,000. Paladin Partners LLC acquired a new position in T-Mobile US during the second quarter worth $25,000. Sachetta LLC boosted its position in shares of T-Mobile US by 52.9% during the first 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. Dunhill Financial LLC purchased a new stake in shares of T-Mobile US in the 2nd quarter valued at $27,000. Finally, Cornerstone Planning Group LLC raised its holdings in shares of T-Mobile US by 112.2% in the 1st quarter. Cornerstone Planning Group LLC now owns 174 shares of the Wireless communications provider's stock valued at $34,000 after buying an additional 92 shares during the period. 42.49% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about T-Mobile US

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

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.

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