T-Mobile US (NASDAQ:TMUS) Hits New 1-Year Low - Here's Why

Key Points

• T-Mobile US hit a new 52-week low, with shares falling as low as $173.54 and closing around $172.05, down about 4% on the day. The move came even as the stock had previously closed at $182.68.
• Despite the weak price action, analyst sentiment remains broadly positive. The stock carries a consensus “Moderate Buy” rating with an average price target of $260.27, though some firms recently trimmed targets or downgraded the shares slightly.
• Fundamentals and shareholder returns remain solid: T-Mobile recently beat quarterly EPS and revenue estimates, posted 10.6% year-over-year revenue growth, and declared a quarterly dividend of $1.02 per share, or $4.08 annually.

T-Mobile US, Inc. (NASDAQ:TMUS - Get Free Report) hit a new 52-week low on Monday . The stock traded as low as $173.54 and last traded at $172.0490, with a volume of 1104249 shares trading hands. The stock had previously closed at $182.68.

Analyst Ratings Changes

A number of analysts have commented on TMUS shares. Freedom Capital raised T-Mobile US from a "hold" rating to a "strong-buy" rating in a report on Friday, April 17th. Weiss Ratings cut T-Mobile US from a "hold (c+)" rating to a "hold (c)" rating in a research report on Monday, June 15th. Royal Bank Of Canada decreased their price target on T-Mobile US from $255.00 to $240.00 and set an "outperform" rating for the company in a report on Wednesday, April 29th. Arete Research boosted their price target on shares of T-Mobile US from $295.00 to $300.00 and gave the stock a "buy" rating in a report on Tuesday, May 5th. Finally, Moffett Nathanson raised shares of T-Mobile US from a "neutral" rating to a "buy" rating and set a $254.00 target price on the stock in a research report on Wednesday, April 8th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, T-Mobile US has an average rating of "Moderate Buy" and a consensus price target of $260.27.

T-Mobile US Trading Down 4.0%

The firm's 50-day simple moving average is $188.24 and its 200 day simple moving average is $197.89. The firm has a market cap of $189.80 billion, a P/E ratio of 18.64, a price-to-earnings-growth ratio of 1.06 and a beta of 0.31. The company has a quick ratio of 0.97, a current ratio of 1.09 and a debt-to-equity ratio of 1.58.

T-Mobile US (NASDAQ:TMUS - Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The Wireless communications provider reported $2.27 EPS for the quarter, beating the consensus estimate of $2.01 by $0.26. T-Mobile US had a return on equity of 19.47% and a net margin of 11.65%.The business had revenue of $23.11 billion for the quarter, compared to the consensus estimate of $22.98 billion. During the same quarter in the prior year, the business earned $2.58 earnings per share. T-Mobile US's revenue for the quarter was up 10.6% on a year-over-year basis. As a group, analysts expect that T-Mobile US, Inc. will post 10.65 earnings per share for the current year.

T-Mobile US Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Friday, August 28th will be given a dividend of $1.02 per share. This represents a $4.08 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend is Friday, August 28th. T-Mobile US's dividend payout ratio is currently 43.40%.

Insider Transactions at T-Mobile US

In related news, insider Michael J. Katz sold 5,000 shares of T-Mobile US stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $195.81, for a total value of $979,050.00. Following the completion of the sale, the insider owned 181,930 shares of the company's stock, valued at approximately $35,623,713.30. This trade represents a 2.67% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Andre Almeida acquired 5,097 shares of the stock in a transaction that occurred on Friday, May 1st. The stock was purchased at an average price of $196.18 per share, for a total transaction of $999,929.46. Following the completion of the purchase, the insider directly owned 44,850 shares in the company, valued at $8,798,673. This trade represents a 12.82% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 0.32% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. CYBER HORNET ETFs LLC grew its position in shares of T-Mobile US by 3.8% in the third quarter. CYBER HORNET ETFs LLC now owns 1,319 shares of the Wireless communications provider's stock valued at $316,000 after purchasing an additional 48 shares in the last quarter. Tevis Investment Management grew its holdings in T-Mobile US by 3.0% during the 3rd quarter. Tevis Investment Management now owns 1,688 shares of the Wireless communications provider's stock valued at $404,000 after buying an additional 49 shares in the last quarter. Meeder Asset Management Inc. grew its holdings in T-Mobile US by 16.2% during the 4th quarter. Meeder Asset Management Inc. now owns 351 shares of the Wireless communications provider's stock valued at $71,000 after buying an additional 49 shares in the last quarter. Meiji Yasuda Life Insurance Co increased its position in shares of T-Mobile US by 0.6% during the third quarter. Meiji Yasuda Life Insurance Co now owns 8,094 shares of the Wireless communications provider's stock valued at $1,938,000 after buying an additional 50 shares during the period. Finally, Wellspring Financial Advisors LLC lifted its holdings in shares of T-Mobile US by 4.3% in the fourth quarter. Wellspring Financial Advisors LLC now owns 1,273 shares of the Wireless communications provider's stock worth $259,000 after buying an additional 52 shares in the last quarter. 42.49% of the stock is currently owned by hedge funds and other institutional investors.

T-Mobile US Company Profile

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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