Benchmark Cuts T-Mobile US (NASDAQ:TMUS) Price Target to $280.00

Key Points

• Benchmark lowered its price target on T-Mobile US from $295 to $280, while keeping a buy rating. The new target still implies meaningful upside from the prior close.
• T-Mobile recently reported strong quarterly earnings, with adjusted EPS of $2.99 beating estimates, though revenue came in slightly below expectations. The company also posted 7.9% year-over-year revenue growth and raised its free cash flow outlook.
• Despite the positive fundamentals, the stock was trading down sharply, and analyst sentiment remains mixed but constructive overall. MarketBeat says the consensus rating is Moderate Buy with an average price target of $253.56.

T-Mobile US (NASDAQ:TMUS - Get Free Report) had its price objective cut by equities research analysts at Benchmark from $295.00 to $280.00 in a report released on Friday,Benzinga reports. The brokerage presently has a "buy" rating on the Wireless communications provider's stock. Benchmark's price objective would suggest a potential upside of 64.30% from the stock's previous close.

A number of other brokerages also recently commented on TMUS. DZ Bank reaffirmed a "buy" rating on shares of T-Mobile US in a research report on Wednesday, May 6th. KeyCorp dropped their price objective on shares of T-Mobile US from $260.00 to $250.00 and set an "overweight" rating on the stock in a report on Friday. Moffett Nathanson upgraded T-Mobile US from a "neutral" rating to a "buy" rating and set a $254.00 target price for the company in a research note on Wednesday, April 8th. UBS Group dropped their price objective on shares of T-Mobile US from $300.00 to $255.00 and set a "buy" rating for the company in a research note on Monday, June 22nd. Finally, Deutsche Bank Aktiengesellschaft decreased their target price on shares of T-Mobile US from $300.00 to $285.00 and set a "buy" rating on the stock in a research report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $253.56.

T-Mobile US Trading Down 10.7%

Shares of NASDAQ:TMUS opened at $170.42 on Friday. 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 capitalization of $184.43 billion, a price-to-earnings ratio of 18.13, a PEG ratio of 1.13 and a beta of 0.33. T-Mobile US has a 1-year low of $165.66 and a 1-year high of $261.56. The company has a 50 day moving average price of $184.63 and a 200 day moving average price of $195.77.

T-Mobile US (NASDAQ:TMUS - Get Free Report) last announced its quarterly earnings data on Thursday, July 23rd. The Wireless communications provider reported $2.99 EPS for the quarter, beating analysts' consensus estimates of $2.59 by $0.40. The company had revenue of $22.79 billion during the quarter, compared to the consensus estimate of $22.95 billion. T-Mobile US had a return on equity of 19.47% and a net margin of 11.65%.The company's quarterly revenue was up 7.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.84 EPS. On average, research analysts anticipate that T-Mobile US will post 10.53 EPS for the current fiscal year.

Insider Buying and Selling at T-Mobile US

In other news, COO Jon Freier sold 4,799 shares of the business's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $190.00, for a total value of $911,810.00. Following the sale, the chief operating officer owned 217,168 shares in the company, valued at approximately $41,261,920. The trade was a 2.16% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Andre Almeida bought 5,097 shares of the stock in a transaction dated Friday, May 1st. The stock was purchased at an average cost of $196.18 per share, for a total transaction of $999,929.46. Following the acquisition, the insider owned 44,850 shares in the company, valued at $8,798,673. The trade was a 12.82% increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 0.32% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. CYBER HORNET ETFs LLC raised its stake in shares of T-Mobile US by 3.8% in the 3rd quarter. CYBER HORNET ETFs LLC now owns 1,319 shares of the Wireless communications provider's stock valued at $316,000 after purchasing an additional 48 shares during the period. Meeder Asset Management Inc. increased its holdings in T-Mobile US by 16.2% during the fourth quarter. Meeder Asset Management Inc. now owns 351 shares of the Wireless communications provider's stock worth $71,000 after buying an additional 49 shares during the last quarter. Wellspring Financial Advisors LLC raised its holdings in shares of T-Mobile US by 4.3% in the 4th quarter. Wellspring Financial Advisors LLC now owns 1,273 shares of the Wireless communications provider's stock valued at $259,000 after purchasing an additional 52 shares during the period. Tcfg Wealth Management LLC raised its stake in T-Mobile US by 5.6% in the third quarter. Tcfg Wealth Management LLC now owns 999 shares of the Wireless communications provider's stock valued at $239,000 after buying an additional 53 shares during the period. Finally, Essex Financial Services Inc. lifted its holdings in T-Mobile US by 3.5% during the 1st quarter. Essex Financial Services Inc. now owns 1,551 shares of the Wireless communications provider's stock valued at $326,000 after purchasing an additional 53 shares during the last quarter. Institutional investors own 42.49% of the company's stock.

Key Stories Impacting T-Mobile US

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

• Positive Sentiment: T-Mobile beat second-quarter profit expectations, with adjusted EPS above estimates, and raised its full-year adjusted free cash flow forecast as more customers migrated to premium plans. Reuters article
• Positive Sentiment: Service revenue and postpaid growth remained strong, with the company highlighting continued account growth, higher postpaid ARPA, and industry-leading service revenue growth. Business Wire article
• Positive Sentiment: Several analysts reiterated a favorable view, with average coverage now pointing to a “Moderate Buy” rating for T-Mobile US. Analyst rating article
• Neutral Sentiment: The company’s revenue came in slightly below Wall Street expectations, and that modest miss appears to be overshadowing the otherwise strong earnings report. Barron’s article
• Negative Sentiment: Stock declines were tied to investor concern that subscriber gains are slowing, which could signal tougher growth ahead despite the improved guidance. Bloomberg article

About T-Mobile US

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.

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.