T-Mobile US, Inc. (NASDAQ:TMUS) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is moderately bullish: Twenty-one of 28 brokerages rate T-Mobile US a buy, one rates it a strong buy, and six recommend holding. The average 12-month price target is $247.84.
• T-Mobile’s latest quarterly results beat expectations on earnings, with EPS of $2.99 versus the $2.59 consensus estimate, while revenue rose 7.9% year over year to $22.79 billion.
• The quarterly dividend increased to $1.17 per share, or $4.68 annually, representing a 2.8% yield. The stock recently traded at $165.93, near its 52-week low of $160.81.

Shares of T-Mobile US, Inc. (NASDAQ:TMUS - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the twenty-eight brokerages that are currently covering the company, Marketbeat reports. Six research analysts have rated the stock with a hold rating, twenty-one have given a buy rating and one has given a strong buy rating to the company. The average 12-month target price among analysts that have covered the stock in the last year is $247.84.

Several brokerages recently commented on TMUS. JPMorgan Chase & Co. reduced their price target on T-Mobile US from $275.00 to $260.00 and set an "overweight" rating for the company in a research report on Monday, September 21st. Sanford C. Bernstein reaffirmed a "neutral" rating on shares of T-Mobile US in a research report on Monday, September 28th. Wolfe Research reiterated a "peer perform" rating on shares of T-Mobile US in a research note on Friday, August 14th. Wells Fargo & Company cut their price objective on T-Mobile US from $170.00 to $169.00 and set an "equal weight" rating for the company in a report on Friday, July 24th. Finally, KeyCorp decreased their target price on shares of T-Mobile US from $260.00 to $250.00 and set an "overweight" rating for the company in a research note on Friday, July 24th.

Insider Buying and Selling

In other news, CAO Daniel James Drobac sold 772 shares of T-Mobile US 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 completion of the transaction, the chief accounting officer owned 35,118 shares of the company's stock, valued at $6,262,592.94. This trade represents a 2.15% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.32% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On T-Mobile US

Institutional investors and hedge funds have recently modified their holdings of the company. Moody National Bank Trust Division grew its holdings in T-Mobile US by 49.2% during the third quarter. Moody National Bank Trust Division now owns 5,553 shares of the Wireless communications provider's stock worth $906,000 after purchasing an additional 1,832 shares during the period. Legacy Private Trust Co. raised its stake in T-Mobile US by 3.2% in the third quarter. Legacy Private Trust Co. now owns 2,710 shares of the Wireless communications provider's stock valued at $442,000 after buying an additional 85 shares during the period. Rosenberg Matthew Hamilton lifted its position in shares of T-Mobile US by 25.0% in the third quarter. Rosenberg Matthew Hamilton now owns 2,168 shares of the Wireless communications provider's stock valued at $354,000 after buying an additional 433 shares during the last quarter. Baker Tilly Wealth Management LLC boosted its stake in shares of T-Mobile US by 37.7% during the 3rd quarter. Baker Tilly Wealth Management LLC now owns 5,198 shares of the Wireless communications provider's stock worth $848,000 after acquiring an additional 1,423 shares during the period. Finally, Versant Capital Management Inc increased its holdings in shares of T-Mobile US by 5.3% during the 3rd quarter. Versant Capital Management Inc now owns 1,597 shares of the Wireless communications provider's stock worth $260,000 after acquiring an additional 81 shares during the last quarter. 42.49% of the stock is owned by institutional investors.

T-Mobile US Stock Up 0.8%

T-Mobile US stock opened at $165.93 on Wednesday. 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 1-year low of $160.81 and a 1-year high of $231.02. The company has a fifty day simple moving average of $175.82 and a 200 day simple moving average of $185.12. The company has a market cap of $177.99 billion, a P/E ratio of 17.37, a price-to-earnings-growth ratio of 1.04 and a beta of 0.33.

T-Mobile US (NASDAQ:TMUS - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The Wireless communications provider reported $2.99 EPS for the quarter, topping the consensus estimate of $2.59 by $0.40. The firm had revenue of $22.79 billion for the quarter, compared to analysts' expectations of $22.95 billion. T-Mobile US had a net margin of 11.45% and a return on equity of 20.16%. The company's revenue for the quarter was up 7.9% on a year-over-year basis. During the same period in the previous year, the firm posted $2.84 EPS. Research analysts anticipate that T-Mobile US will post 11.02 earnings per share for the current fiscal year.

T-Mobile US Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Wednesday, November 25th will be given a dividend of $1.17 per share. This represents a $4.68 annualized dividend and a yield of 2.8%. This is an increase from T-Mobile US's previous quarterly dividend of $1.02. The ex-dividend date of this dividend is Wednesday, November 25th. T-Mobile US's payout ratio is currently 42.72%.

T-Mobile US Company Profile

T-Mobile US, Inc is a wireless communications company that provides mobile voice, messaging, and data services to consumers, businesses, and government customers in the United States. Its offerings include wireless plans, smartphones, connected devices, accessories, and related services, supported by a nationwide cellular network.

The company also provides fixed wireless broadband and other internet services for households, as well as wireless connectivity, networking, and communications solutions for businesses and public-sector organizations.

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