T-Mobile US (NASDAQ:TMUS) Sets New 12-Month Low - Time to Sell?

Key Points

• T-Mobile US shares fell to a new 52-week low of $160.81, trading below both their 50-day and 200-day moving averages.
• Despite the decline, analysts maintain a consensus “Moderate Buy” rating with an average price target of $248.88, although several firms recently lowered their targets.
• The company reported better-than-expected quarterly EPS of $2.99 and 7.9% year-over-year revenue growth, while raising its quarterly dividend to $1.17 per share, or a 2.9% yield.

T-Mobile US, Inc. (NASDAQ:TMUS - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Friday. The company traded as low as $160.81 and last traded at $162.92, with a volume of 182049 shares trading hands. The stock had previously closed at $161.73.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the company. Weiss Ratings reissued a "hold (c)" rating on shares of T-Mobile US in a research note on Friday, September 11th. JPMorgan Chase & Co. reduced their price objective on shares of T-Mobile US from $275.00 to $260.00 and set an "overweight" rating for the company in a research note on Monday, September 21st. The Goldman Sachs Group decreased their target price on shares of T-Mobile US from $230.00 to $211.00 and set a "buy" rating for the company in a report on Friday, September 25th. Wolfe Research reiterated a "peer perform" rating on shares of T-Mobile US in a research note on Friday, August 14th. Finally, Wells Fargo & Company cut their price target on shares of T-Mobile US from $170.00 to $169.00 and set an "equal weight" rating on the stock in a report on Friday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, T-Mobile US presently has a consensus rating of "Moderate Buy" and an average target price of $248.88.

T-Mobile US Stock Performance

The company has a quick ratio of 0.83, a current ratio of 0.92 and a debt-to-equity ratio of 1.48. The stock has a market capitalization of $174.52 billion, a P/E ratio of 17.04, a P/E/G ratio of 1.03 and a beta of 0.33. The business has a fifty day moving average price of $176.73 and a 200-day moving average price of $186.11.

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 EPS for the quarter, topping the consensus estimate of $2.59 by $0.40. T-Mobile US had a return on equity of 20.16% and a net margin of 11.45%.The company had revenue of $22.79 billion during the quarter, compared to the consensus estimate of $22.95 billion. During the same period last year, the company earned $2.84 EPS. T-Mobile US's revenue for the quarter was up 7.9% on a year-over-year basis. On average, sell-side analysts expect that T-Mobile US, Inc. will post 11.02 EPS for the current year.

T-Mobile US Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Wednesday, November 25th will be issued a dividend of $1.17 per share. This represents a $4.68 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend is Wednesday, November 25th. This is a boost from T-Mobile US's previous quarterly dividend of $1.02. T-Mobile US's payout ratio is 42.72%.

Insider Activity at T-Mobile US

In other news, CAO Daniel James Drobac sold 772 shares of T-Mobile US stock in a transaction that occurred on 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 sale, the chief accounting officer directly owned 35,118 shares in the company, valued at $6,262,592.94. The trade was a 2.15% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.32% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On T-Mobile US

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new position in shares of T-Mobile US during the 2nd quarter valued at $6,625,275,000. State Street Corp grew its holdings in shares of T-Mobile US by 4.3% in the fourth quarter. State Street Corp now owns 25,281,709 shares of the Wireless communications provider's stock worth $5,133,198,000 after acquiring an additional 1,047,624 shares during the period. Capital International Investors increased its position in T-Mobile US by 8.2% during the fourth quarter. Capital International Investors now owns 14,847,697 shares of the Wireless communications provider's stock valued at $3,014,754,000 after acquiring an additional 1,121,409 shares during the last quarter. Invesco Ltd. increased its position in T-Mobile US by 10.5% during the fourth quarter. Invesco Ltd. now owns 8,730,485 shares of the Wireless communications provider's stock valued at $1,772,638,000 after acquiring an additional 827,381 shares during the last quarter. Finally, Franklin Resources Inc. lifted its holdings in T-Mobile US by 3.6% in the fourth quarter. Franklin Resources Inc. now owns 6,395,890 shares of the Wireless communications provider's stock valued at $1,298,622,000 after acquiring an additional 222,603 shares during the period. Hedge funds and other institutional investors own 42.49% of the company's stock.

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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