T-Mobile US (NASDAQ:TMUS) Share Price Crosses Above 50-Day Moving Average - Here's Why

Key Points

• T-Mobile shares rose 4.1% and moved above their 50-day moving average, reaching an intraday high of $169.26 and last trading at $168.71.
• The company beat quarterly earnings and revenue expectations, reporting EPS of $3.22 versus $2.89 expected and revenue of $23.58 billion, up 7.4% year over year.
• T-Mobile raised its quarterly dividend from $1.02 to $1.17 per share. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $238.25.

T-Mobile US, Inc. (NASDAQ:TMUS - Get Free Report) crossed above its fifty day moving average during trading on Monday. The stock has a fifty day moving average of $164.71 and traded as high as $169.26. T-Mobile US shares last traded at $168.71, with a volume of 7,257,438 shares changing hands.

Analyst Upgrades and Downgrades

TMUS has been the subject of a number of recent research reports. TD Cowen decreased their price objective on T-Mobile US from $260.00 to $258.00 and set a "buy" rating for the company in a report on Thursday, October 29th. Citigroup lowered their target price on T-Mobile US from $225.00 to $165.00 and set a "neutral" rating for the company in a report on Thursday, October 29th. Sanford C. Bernstein reiterated a "neutral" rating on shares of T-Mobile US in a report on Monday, September 28th. Wells Fargo & Company dropped their price target on T-Mobile US from $170.00 to $169.00 and set an "equal weight" rating on the stock in a research note on Friday, July 24th. Finally, The Goldman Sachs Group cut their price target on T-Mobile US from $230.00 to $211.00 and set a "buy" rating on the stock in a report on Friday, September 25th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat, T-Mobile US presently has a consensus rating of "Moderate Buy" and an average price target of $238.25.

T-Mobile US Stock Up 4.1%

The stock has a market cap of $178.71 billion, a price-to-earnings ratio of 16.28, a price-to-earnings-growth ratio of 0.92 and a beta of 0.40. The firm's fifty day moving average price is $164.71 and its two-hundred day moving average price is $186.11. The company has a debt-to-equity ratio of 1.45, a current ratio of 0.91 and a quick ratio of 0.78.

T-Mobile US (NASDAQ:TMUS - Get Free Report) last issued its earnings results on Wednesday, October 28th. The Wireless communications provider reported $3.22 EPS for the quarter, beating the consensus estimate of $2.89 by $0.33. T-Mobile US had a return on equity of 21.47% and a net margin of 12.05%. The company had revenue of $23.58 billion during the quarter, compared to the consensus estimate of $23.15 billion. During the same period last year, the business posted $2.41 EPS. The firm's revenue for the quarter was up 7.4% compared to the same quarter last year. Sell-side analysts forecast that T-Mobile US, Inc. will post 11.44 earnings per share for the current fiscal year.

T-Mobile US Increases Dividend

The company also recently disclosed 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 is a positive change from T-Mobile US's previous quarterly dividend of $1.02. This represents a $4.68 annualized dividend and a dividend yield of 2.8%. The ex-dividend date is Wednesday, November 25th. T-Mobile US's dividend payout ratio is presently 39.38%.

Insider Activity at T-Mobile US

In other news, CAO Daniel James Drobac sold 772 shares of the company's stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $178.33, for a total transaction of $137,670.76. Following the transaction, the chief accounting officer directly owned 35,118 shares of the company's stock, valued at $6,262,592.94. This represents a 2.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.32% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in TMUS. BlackRock Inc. acquired a new position in T-Mobile US during the 2nd quarter valued at about $6,625,275,000. Bank of New York Mellon Corp bought a new stake in T-Mobile US during the 2nd quarter worth approximately $839,194,000. Bank of America Corp DE purchased a new stake in shares of T-Mobile US in the second quarter worth approximately $758,977,000. Legal & General Group Plc purchased a new stake in shares of T-Mobile US in the second quarter worth approximately $583,675,000. Finally, Deutsche Bank AG bought a new stake in T-Mobile US during the second quarter worth $349,928,000. 42.49% of the stock is currently owned by institutional investors and hedge funds.

About T-Mobile US

T-Mobile US, Inc is a wireless communications provider serving consumers, businesses and government customers in the United States. Its services include wireless voice, messaging and data, as well as broadband internet delivered over its wireless network.

The company offers service under the T-Mobile and Metro by T-Mobile brands. Its products and services include mobile plans, smartphones and other connected devices, home internet, and solutions for business customers.

T-Mobile traces its roots to VoiceStream Wireless, which Deutsche Telekom acquired in 2001.

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