T-Mobile US (NASDAQ:TMUS) Price Target Cut to $240.00 by Analysts at Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut its price target on T‑Mobile from $255 to $240 but kept an "outperform" rating, implying roughly a 20% upside; MarketBeat's consensus remains slightly higher at a $260.13 target with a "Moderate Buy" rating.
• Q1 results were strong: T‑Mobile reported a double beat (EPS $2.27 vs. $2.06 and revenue $23.11B vs. $22.97B), raised guidance, and is expanding into fiber/business broadband while increasing share buybacks.
• Near-term risks exist as merger-related costs and accelerated depreciation pressured GAAP profit, and insiders sold a large block of shares (694,134 shares worth about $150.8M) over the last 90 days.

T-Mobile US (NASDAQ:TMUS - Get Free Report) had its price target dropped by research analysts at Royal Bank Of Canada from $255.00 to $240.00 in a report released on Wednesday,Benzinga reports. The brokerage currently has an "outperform" rating on the Wireless communications provider's stock. Royal Bank Of Canada's target price would suggest a potential upside of 20.20% from the stock's current price.

A number of other equities research analysts also recently weighed in on TMUS. Wall Street Zen downgraded T-Mobile US from a "hold" rating to a "sell" rating in a report on Saturday, March 14th. UBS Group reiterated a "buy" rating on shares of T-Mobile US in a report on Thursday, February 12th. BNP Paribas Exane lowered their price objective on T-Mobile US from $300.00 to $275.00 and set an "outperform" rating for the company in a research note on Friday, January 16th. Morgan Stanley began coverage on T-Mobile US in a research note on Thursday, April 16th. They set an "overweight" rating and a $260.00 price objective for the company. Finally, Daiwa Securities Group upgraded T-Mobile US from a "neutral" rating to an "outperform" rating and set a $240.00 price objective for the company in a research note on Thursday, February 19th. Two investment analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, T-Mobile US has a consensus rating of "Moderate Buy" and a consensus target price of $260.13.

T-Mobile US Stock Performance

Shares of NASDAQ TMUS traded up $12.94 during trading on Wednesday, reaching $199.66. The stock had a trading volume of 5,455,451 shares, compared to its average volume of 6,288,771. T-Mobile US has a one year low of $181.36 and a one year high of $261.56. The company has a debt-to-equity ratio of 1.45, a quick ratio of 0.90 and a current ratio of 1.00. The stock has a market cap of $220.00 billion, a PE ratio of 20.58, a P/E/G ratio of 1.19 and a beta of 0.43. The firm's 50 day moving average price is $206.82 and its two-hundred day moving average price is $205.52.

T-Mobile US (NASDAQ:TMUS - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The Wireless communications provider reported $2.27 earnings per share for the quarter, beating analysts' consensus estimates of $2.06 by $0.21. T-Mobile US had a return on equity of 19.00% and a net margin of 12.45%.The business had revenue of $23.11 billion during the quarter, compared to the consensus estimate of $22.97 billion. During the same period in the previous year, the business earned $2.58 EPS. The business's quarterly revenue was up 10.6% on a year-over-year basis. On average, research analysts forecast that T-Mobile US will post 10.52 earnings per share for the current fiscal year.

Insider Activity at T-Mobile US

In other T-Mobile US news, Director G Michael Sievert sold 80,000 shares of the business's stock in a transaction on Thursday, February 19th. The stock was sold at an average price of $214.94, for a total transaction of $17,195,200.00. Following the completion of the transaction, the director owned 140,696 shares in the company, valued at approximately $30,241,198.24. The trade was a 36.25% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Raul Marcelo Claure sold 550,000 shares of the business's stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $217.57, for a total value of $119,663,500.00. Following the transaction, the director owned 891,204 shares of the company's stock, valued at $193,899,254.28. This trade represents a 38.16% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 694,134 shares of company stock worth $150,847,799 in the last ninety days. 0.37% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. City Holding Co. boosted its position in T-Mobile US by 48.4% during the 3rd quarter. City Holding Co. now owns 141 shares of the Wireless communications provider's stock worth $34,000 after acquiring an additional 46 shares during the period. New Republic Capital LLC lifted its holdings in shares of T-Mobile US by 4.7% in the third quarter. New Republic Capital LLC now owns 1,073 shares of the Wireless communications provider's stock valued at $257,000 after buying an additional 48 shares during the period. CYBER HORNET ETFs LLC lifted its holdings 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 buying an additional 48 shares during the period. Appleton Partners Inc. MA lifted its holdings in shares of T-Mobile US by 5.3% in the third quarter. Appleton Partners Inc. MA now owns 971 shares of the Wireless communications provider's stock valued at $232,000 after buying an additional 49 shares during the period. Finally, MJP Associates Inc. ADV lifted its holdings in shares of T-Mobile US by 2.7% in the third quarter. MJP Associates Inc. ADV now owns 1,886 shares of the Wireless communications provider's stock valued at $452,000 after buying an additional 49 shares during the period. Institutional investors and hedge funds own 42.49% of the company's stock.

Key Stories Impacting T-Mobile US

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

• Positive Sentiment: Q1 double beat — EPS topped estimates and service revenue grew with healthy postpaid net additions; management raised guidance for account additions and free cash flow, supporting upside to growth and returns. T-Mobile Reports Q1 Double-Beat, Raises Guidance
• Positive Sentiment: Fiber and business broadband expansion — announced two 50/50 fiber JVs to add >1M homes and launched “SuperBroadband” (5G + Starlink backup) to win enterprise customers, expanding addressable market beyond wireless. T-Mobile Unveils Fiber Joint Ventures Targeting Over 1 Million Additional Homes
• Positive Sentiment: Analyst support and AI thesis — Oppenheimer upgraded to Outperform and argues T‑Mobile can use AI for pricing power and cost cuts, a catalyst for higher ARPA and margins over time. Oppenheimer Upgrades T-Mobile to Outperform With a $260 Price Target
• Positive Sentiment: Shareholder returns and buybacks — company expanded 2026 return authorization and delivered sizable Q1 repurchases/dividends, underpinning near‑term support for the stock. T-Mobile shares jump after Q1 results and raised 2026 guidance
• Neutral Sentiment: Satellite service uptake remains low — management flagged limited immediate usage for satellite offerings, tempering near-term revenue expectations from those products. T-Mobile US posts strong Q1 but satellite usage is low
• Neutral Sentiment: Potential regulatory/operational noise — recently proposed robocall legislation could affect outreach/marketing practices for major carriers (including TMUS), a policy risk to monitor. New Bill: Protecting American Consumers from Robocalls Act
• Negative Sentiment: Merger-related costs and profit pressure — Q1 showed operating profit and net income declines due to UScellular merger costs and accelerated depreciation, a near-term drag on GAAP margins. T-Mobile Releases Q1 2026 Earnings: Net Income Down
• Negative Sentiment: Insider selling and mixed analyst moves — heavy insider selling noted and one firm trimmed a price target slightly; watch potential sentiment shifts if buyback pace or guidance disappoints. Scotiabank lowers target to $263

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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