Capital World Investors Trims Stock Position in T-Mobile US, Inc. $TMUS

Key Points

• Capital World Investors reduced its T-Mobile US stake by 46.6% in the fourth quarter, selling 268,404 shares and leaving it with 307,500 shares valued at about $62.4 million.
• Analysts remain generally positive on TMUS, with several firms raising price targets and the stock carrying a Moderate Buy consensus rating and an average target price of $260.48.
• T-Mobile reported strong quarterly results, posting $2.27 EPS versus $2.01 expected and revenue of $23.11 billion, while also declaring a quarterly dividend of $1.02 per share.

Capital World Investors cut its stake in shares of T-Mobile US, Inc. (NASDAQ:TMUS - Free Report) by 46.6% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 307,500 shares of the Wireless communications provider's stock after selling 268,404 shares during the quarter. Capital World Investors' holdings in T-Mobile US were worth $62,435,000 at the end of the most recent reporting period.

Other institutional investors have also modified their holdings of the company. JDM Financial Group LLC increased its position in shares of T-Mobile US by 114.0% during the fourth quarter. JDM Financial Group LLC now owns 122 shares of the Wireless communications provider's stock worth $25,000 after acquiring an additional 65 shares during the period. Turning Point Benefit Group Inc. increased its position in shares of T-Mobile US by 3,825.0% during the fourth quarter. Turning Point Benefit Group Inc. now owns 157 shares of the Wireless communications provider's stock worth $32,000 after acquiring an additional 153 shares during the period. United Community Bank increased its position in shares of T-Mobile US by 78.8% during the fourth quarter. United Community Bank now owns 186 shares of the Wireless communications provider's stock worth $38,000 after acquiring an additional 82 shares during the period. Ares Financial Consulting LLC purchased a new position in shares of T-Mobile US during the fourth quarter worth approximately $38,000. Finally, WHI TRUST Co LLC purchased a new position in shares of T-Mobile US during the fourth quarter worth approximately $41,000. 42.49% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

TMUS has been the topic of a number of recent research reports. TD Cowen increased their price objective on shares of T-Mobile US from $252.00 to $261.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. Arete Research increased their price objective on shares of T-Mobile US from $295.00 to $300.00 and gave the company a "buy" rating in a research note on Tuesday, May 5th. Sanford C. Bernstein reiterated a "neutral" rating on shares of T-Mobile US in a research note on Wednesday, April 22nd. KeyCorp upgraded shares of T-Mobile US from a "sector weight" rating to an "overweight" rating and set a $260.00 price objective on the stock in a research note on Monday, April 13th. Finally, The Goldman Sachs Group reiterated a "buy" rating on shares of T-Mobile US in a research note on Wednesday, April 29th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, T-Mobile US presently has an average rating of "Moderate Buy" and an average target price of $260.48.

Insider Activity at T-Mobile US

In other T-Mobile US news, insider Andre Almeida bought 5,097 shares of the firm's stock in a transaction that occurred on Friday, May 1st. The stock was bought at an average cost of $196.18 per share, for a total transaction of $999,929.46. Following the completion of the transaction, the insider directly owned 44,850 shares of the company's stock, valued at approximately $8,798,673. This trade represents a 12.82% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, 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 transaction of $911,810.00. Following the transaction, the chief operating officer owned 217,168 shares of the company's stock, valued at $41,261,920. This represents a 2.16% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.32% of the stock is currently owned by insiders.

T-Mobile US Price Performance

Shares of TMUS opened at $179.46 on Wednesday. The firm has a market capitalization of $194.21 billion, a PE ratio of 19.09, a price-to-earnings-growth ratio of 1.04 and a beta of 0.31. The company has a debt-to-equity ratio of 1.58, a current ratio of 1.09 and a quick ratio of 0.97. T-Mobile US, Inc. has a 1-year low of $174.02 and a 1-year high of $261.56. The company's fifty day moving average price is $192.36 and its 200-day moving average price is $200.11.

T-Mobile US (NASDAQ:TMUS - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The Wireless communications provider reported $2.27 earnings per share for the quarter, beating analysts' consensus estimates of $2.01 by $0.26. The firm had revenue of $23.11 billion for the quarter, compared to analyst estimates of $22.98 billion. T-Mobile US had a net margin of 11.65% and a return on equity of 19.47%. The business's quarterly revenue was up 10.6% compared to the same quarter last year. During the same period in the previous year, the company earned $2.58 earnings per share. On average, equities research analysts predict that T-Mobile US, Inc. will post 10.65 EPS for the current year.

T-Mobile US Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Friday, May 29th will be given a dividend of $1.02 per share. The ex-dividend date is Friday, May 29th. This represents a $4.08 dividend on an annualized basis and a yield of 2.3%. T-Mobile US's payout ratio is currently 43.40%.

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.

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