T-Mobile US (NASDAQ:TMUS) Sets New 1-Year Low - Time to Sell?

Key Points

• T-Mobile US shares fell to a new 52-week low of $146.32, well below their 50-day and 200-day moving averages, amid concerns about increased competition and valuation pressure.
• SpaceX’s potential entry into the national wireless market could intensify pricing pressure, raise customer-acquisition costs and require greater network investment from established carriers such as T-Mobile.
• Despite the selloff, analysts maintain a consensus “Moderate Buy” rating with an average price target of $242.21; upcoming third-quarter results on October 28 and stronger subscriber and broadband growth will be key catalysts.

T-Mobile US, Inc. (NASDAQ:TMUS - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Saturday. The stock traded as low as $146.32 and last traded at $146.54, with a volume of 8,557,891 shares traded. The stock had previously closed at $158.79.

T-Mobile US News Summary

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

• Positive Sentiment: Erste Group Bank modestly increased its fiscal 2027 EPS forecast for T-Mobile US to $13.81 from $13.79, signaling slightly improved confidence in the company’s longer-term earnings outlook. Erste Group Bank raises T-Mobile EPS estimate
• Neutral Sentiment: T-Mobile’s third-quarter results are due October 28. Analysts expect subscriber additions, broadband growth and device promotions to support revenue, although higher expenses and aggressive competition could limit profitability. T-Mobile third-quarter earnings preview
• Negative Sentiment: SpaceX is reportedly negotiating with cellular infrastructure providers for thousands of tower locations after acquiring additional mobile spectrum. Its potential launch of a fourth national wireless carrier could increase pricing pressure, customer-acquisition costs and network investment requirements for T-Mobile. Why T-Mobile US stock dropped
• Negative Sentiment: Citigroup reportedly sees further valuation pressure for established wireless carriers, while tower operators could benefit from SpaceX leasing network infrastructure. This relative advantage for tower companies reinforced concerns about T-Mobile’s competitive position. Citi commentary on SpaceX wireless expansion

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the company. Scotiabank lowered their price objective on T-Mobile US from $217.00 to $212.00 and set a "sector outperform" rating for the company in a research report on Friday, October 9th. Royal Bank Of Canada decreased their target price on T-Mobile US from $240.00 to $230.00 and set an "outperform" rating for the company in a research note on Monday, July 20th. The Goldman Sachs Group decreased their target price on T-Mobile US from $230.00 to $211.00 and set a "buy" rating for the company in a research note on Friday, September 25th. UBS Group lowered their price target 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, Benchmark dropped their price target on shares of T-Mobile US from $295.00 to $280.00 and set a "buy" rating on the stock in a research note on Friday, July 24th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $242.21.

T-Mobile US Stock Performance

The firm's 50-day moving average is $170.37 and its 200 day moving average is $180.61. The stock has a market cap of $157.19 billion, a PE ratio of 15.34, a P/E/G ratio of 0.99 and a beta of 0.33. The company has a debt-to-equity ratio of 1.48, a quick ratio of 0.83 and a current ratio of 0.92.

T-Mobile US (NASDAQ:TMUS - Get Free Report) last posted 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 for the quarter, compared to analyst estimates of $22.95 billion. T-Mobile US had a net margin of 11.45% and a return on equity of 20.16%. T-Mobile US's quarterly revenue was up 7.9% on a year-over-year basis. During the same period in the previous year, the business posted $2.84 earnings per share. As a group, research analysts anticipate that T-Mobile US, Inc. will post 11.17 EPS for the current year.

T-Mobile US Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Wednesday, November 25th will be paid a $1.17 dividend. This represents a $4.68 annualized dividend and a dividend yield of 3.2%. This is a positive change from T-Mobile US's previous quarterly dividend of $1.02. The ex-dividend date is Wednesday, November 25th. T-Mobile US's dividend payout ratio (DPR) is 49.01%.

Insiders Place Their Bets

In other T-Mobile US 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 completion of the transaction, the chief accounting officer directly owned 35,118 shares of the company's stock, valued at approximately $6,262,592.94. This trade represents a 2.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 0.32% of the company's stock.

Institutional Investors Weigh In On T-Mobile US

Several institutional investors have recently modified their holdings of the company. BlackRock Inc. purchased a new stake in shares of T-Mobile US in the 2nd quarter worth about $6,625,275,000. Bank of New York Mellon Corp acquired a new position in T-Mobile US during the second quarter worth about $839,194,000. Bank of America Corp DE acquired a new position in T-Mobile US during the second quarter worth about $758,977,000. Legal & General Group Plc purchased a new stake in shares of T-Mobile US in the second quarter valued at about $583,675,000. Finally, Deutsche Bank AG purchased a new stake in shares of T-Mobile US in the second quarter valued at about $349,928,000. Hedge funds and other institutional investors own 42.49% of the company's stock.

About T-Mobile US

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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