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TD Cowen Cuts T-Mobile US (NASDAQ:TMUS) Price Target to $260.00

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Key Points

  • TD Cowen trimmed its price target on T-Mobile US slightly, from $261 to $260, while keeping a buy rating on the stock.
  • The new target still implies about 44.9% upside from the prior close, and Wall Street remains broadly constructive with a consensus rating of Moderate Buy.
  • T-Mobile recently beat earnings estimates with quarterly EPS of $2.99, though revenue came in a bit light; the company also raised its full-year adjusted free cash flow outlook.
  • Five stocks we like better than T-Mobile US.

T-Mobile US (NASDAQ:TMUS - Get Free Report) had its target price reduced by equities researchers at TD Cowen from $261.00 to $260.00 in a research note issued on Friday,Benzinga reports. The firm currently has a "buy" rating on the Wireless communications provider's stock. TD Cowen's price target would indicate a potential upside of 44.94% from the stock's previous close.

TMUS has been the topic of a number of other research reports. Deutsche Bank Aktiengesellschaft decreased their price objective on T-Mobile US from $300.00 to $285.00 and set a "buy" rating on the stock in a report on Thursday, April 30th. Barclays lowered their price target on shares of T-Mobile US from $230.00 to $215.00 and set an "overweight" rating on the stock in a research report on Friday. Moffett Nathanson raised shares of T-Mobile US from a "neutral" rating to a "buy" rating and set a $254.00 price objective for the company in a research note on Wednesday, April 8th. Morgan Stanley lowered their target price on T-Mobile US from $260.00 to $230.00 and set an "overweight" rating on the stock in a report on Tuesday, July 7th. Finally, Royal Bank Of Canada dropped their price target on T-Mobile US from $240.00 to $230.00 and set an "outperform" rating for the company in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, T-Mobile US currently has an average rating of "Moderate Buy" and a consensus price target of $252.88.

View Our Latest Stock Analysis on TMUS

T-Mobile US Price Performance

TMUS stock traded up $8.96 during trading on Friday, hitting $179.38. The stock had a trading volume of 2,441,313 shares, compared to its average volume of 5,863,155. The company has a debt-to-equity ratio of 1.58, a current ratio of 1.09 and a quick ratio of 0.97. T-Mobile US has a twelve month low of $165.66 and a twelve month high of $261.56. The stock has a market capitalization of $194.13 billion, a P/E ratio of 19.08, a PEG ratio of 1.13 and a beta of 0.33. The company's 50-day moving average price is $184.63 and its two-hundred day moving average price is $195.77.

T-Mobile US (NASDAQ:TMUS - Get Free Report) last announced its earnings results on Thursday, July 23rd. The Wireless communications provider reported $2.99 EPS for the quarter, beating analysts' consensus estimates of $2.59 by $0.40. The business had revenue of $22.79 billion during the quarter, compared to analysts' expectations of $22.95 billion. T-Mobile US had a return on equity of 19.47% and a net margin of 11.65%.The business's revenue was up 7.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.84 earnings per share. As a group, research analysts predict that T-Mobile US will post 10.53 EPS for the current fiscal year.

Insider Buying and Selling at T-Mobile US

In other T-Mobile US news, insider Michael J. Katz sold 5,000 shares of the business's stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $195.81, for a total value of $979,050.00. Following the transaction, the insider directly owned 181,930 shares in the company, valued at $35,623,713.30. The trade was a 2.67% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, COO Jon Freier sold 4,799 shares of the stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $190.00, for a total transaction of $911,810.00. Following the completion of the sale, the chief operating officer directly owned 217,168 shares of the company's stock, valued at approximately $41,261,920. This trade represents a 2.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.32% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On T-Mobile US

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Norges Bank acquired a new position in T-Mobile US in the fourth quarter valued at about $1,335,918,000. Price T Rowe Associates Inc. MD raised its stake in shares of T-Mobile US by 30.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 27,795,065 shares of the Wireless communications provider's stock valued at $5,643,511,000 after acquiring an additional 6,516,968 shares during the period. Dodge & Cox raised its stake in shares of T-Mobile US by 65.2% in the 4th quarter. Dodge & Cox now owns 6,185,972 shares of the Wireless communications provider's stock valued at $1,256,000,000 after acquiring an additional 2,442,450 shares during the period. Pacer Advisors Inc. lifted its holdings in shares of T-Mobile US by 1,375.9% in the 1st quarter. Pacer Advisors Inc. now owns 1,755,286 shares of the Wireless communications provider's stock worth $368,663,000 after acquiring an additional 1,636,359 shares during the last quarter. Finally, Viking Global Investors LP boosted its position in shares of T-Mobile US by 81.7% during the 2nd quarter. Viking Global Investors LP now owns 2,845,316 shares of the Wireless communications provider's stock worth $677,925,000 after purchasing an additional 1,279,422 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: T-Mobile delivered stronger-than-expected quarterly profit and raised its full-year adjusted free cash flow forecast, helped by customers moving to higher-priced premium plans and continued growth in postpaid service revenue. Reuters article
  • Positive Sentiment: The company said strong account growth and higher postpaid average revenue per account are supporting industry-leading service revenue growth, which can signal healthier fundamentals ahead. Business Wire article
  • Neutral Sentiment: Wall Street remains broadly constructive overall, with one report saying T-Mobile still carries an average analyst rating of “Moderate Buy.” American Banking News article
  • Negative Sentiment: Several firms cut price targets after the quarter: Wells Fargo lowered its target to $169 and kept an equal-weight rating, Barclays cut to $215, Benchmark reduced to $280, and KeyCorp trimmed to $250. That signals some caution around near-term upside. Analyst target cuts
  • Negative Sentiment: Investors appear focused on the revenue miss and slowing subscriber growth, which overshadowed the earnings beat and contributed to the stock’s pullback after results. Bloomberg article

About T-Mobile US

(Get Free Report)

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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Analyst Recommendations for T-Mobile US (NASDAQ:TMUS)

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