T-Mobile US (NASDAQ:TMUS) Sets New 12-Month Low Following Analyst Downgrade

Key Points

• T-Mobile US shares fell 8.7% to a new 52-week low after Scotiabank cut its price target from $217 to $212, despite maintaining a sector outperform rating.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $247.64; institutional investors own 42.49% of the stock.
• T-Mobile reported quarterly EPS of $2.99, ahead of the $2.59 estimate, and increased its quarterly dividend to $1.17 per share, equivalent to a 3.0% yield.

T-Mobile US, Inc. (NASDAQ:TMUS - Get Free Report)'s stock price hit a new 52-week low on Friday after Scotiabank lowered their price target on the stock from $217.00 to $212.00. Scotiabank currently has a sector outperform rating on the stock. T-Mobile US traded as low as $158.60 and last traded at $154.7610, with a volume of 194674 shares traded. The stock had previously closed at $171.31.

TMUS has been the topic of several other research reports. KeyCorp dropped their target price 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, July 24th. Sanford C. Bernstein reissued a "neutral" rating on shares of T-Mobile US in a report on Monday, September 28th. Weiss Ratings restated a "hold (c)" rating on shares of T-Mobile US in a research note on Friday, September 11th. Wolfe Research reaffirmed a "peer perform" rating on shares of T-Mobile US in a report on Friday, August 14th. Finally, Morgan Stanley reduced their price objective on T-Mobile US from $260.00 to $230.00 and set an "overweight" rating for the company in a research report on Tuesday, July 7th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $247.64.

Insider Activity at T-Mobile US

In other news, CAO Daniel James Drobac sold 772 shares of the firm's stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $178.33, for a total value of $137,670.76. Following 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.32% of the stock is owned by company insiders.

Hedge Funds Weigh In On T-Mobile US

Several large investors have recently added to or reduced their stakes in TMUS. Legacy Wealth Asset Management LLC bought a new stake in shares of T-Mobile US during the 3rd quarter valued at $759,000. Stableford Capital II LLC boosted its holdings in T-Mobile US by 2.5% in the 3rd quarter. Stableford Capital II LLC now owns 10,724 shares of the Wireless communications provider's stock worth $1,749,000 after buying an additional 257 shares during the period. GAMMA Investing LLC increased its stake in T-Mobile US by 0.5% in the 3rd quarter. GAMMA Investing LLC now owns 12,108 shares of the Wireless communications provider's stock worth $1,975,000 after buying an additional 66 shares in the last quarter. Davis Capital Management increased its stake in T-Mobile US by 80.9% in the 3rd quarter. Davis Capital Management now owns 3,350 shares of the Wireless communications provider's stock worth $546,000 after buying an additional 1,498 shares in the last quarter. Finally, Farther Finance Advisors LLC raised its holdings in T-Mobile US by 27.3% during the third quarter. Farther Finance Advisors LLC now owns 24,469 shares of the Wireless communications provider's stock valued at $3,990,000 after acquiring an additional 5,250 shares during the period. Hedge funds and other institutional investors own 42.49% of the company's stock.

T-Mobile US Trading Down 8.7%

The stock has a fifty day simple moving average of $175.51 and a 200 day simple moving average of $184.59. The firm has a market capitalization of $167.73 billion, a P/E ratio of 16.35, a PEG ratio of 1.05 and a beta of 0.33. The company has a quick ratio of 0.83, a current ratio of 0.92 and a debt-to-equity ratio of 1.48.

T-Mobile US (NASDAQ:TMUS - Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The Wireless communications provider reported $2.99 earnings per share for the quarter, topping analysts' consensus estimates of $2.59 by $0.40. The firm had revenue of $22.79 billion during the quarter, compared to analyst estimates of $22.95 billion. T-Mobile US had a return on equity of 20.16% and a net margin of 11.45%.The business's quarterly revenue was up 7.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.84 earnings per share. As a group, research analysts forecast that T-Mobile US, Inc. will post 11.09 EPS for the current year.

T-Mobile US Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Wednesday, November 25th will be given a dividend of $1.17 per share. This is a positive change from T-Mobile US's previous quarterly dividend of $1.02. This represents a $4.68 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date is Wednesday, November 25th. T-Mobile US's dividend payout ratio (DPR) is currently 49.01%.

About T-Mobile US

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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