T-Mobile US (NASDAQ:TMUS) Shares Gap Up After Better-Than-Expected Earnings

T-Mobile US, Inc. (NASDAQ:TMUS)’s share price gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $221.14, but opened at $238.00. T-Mobile US shares last traded at $240.07, with a volume of 1,815,254 shares changing hands.

The Wireless communications provider reported $2.57 EPS for the quarter, beating the consensus estimate of $2.15 by $0.42. T-Mobile US had a net margin of 12.96% and a return on equity of 16.35%.

T-Mobile US Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, March 13th. Stockholders of record on Friday, February 28th will be given a $0.88 dividend. The ex-dividend date is Friday, February 28th. This represents a $3.52 annualized dividend and a dividend yield of 1.50%. T-Mobile US’s dividend payout ratio (DPR) is 40.14%.

Analysts Set New Price Targets

Several analysts have recently issued reports on TMUS shares. UBS Group lifted their target price on shares of T-Mobile US from $210.00 to $255.00 and gave the company a “buy” rating in a research report on Thursday, October 24th. The Goldman Sachs Group lifted their target price on shares of T-Mobile US from $220.00 to $250.00 and gave the stock a “buy” rating in a research note on Thursday, October 24th. BNP Paribas raised shares of T-Mobile US to a “strong-buy” rating in a research note on Friday, October 25th. Benchmark reissued a “buy” rating and issued a $255.00 price target on shares of T-Mobile US in a research note on Tuesday. Finally, TD Cowen lifted their price objective on shares of T-Mobile US from $216.00 to $250.00 and gave the company a “buy” rating in a report on Thursday, October 24th. Seven analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat, T-Mobile US presently has an average rating of “Moderate Buy” and an average target price of $245.74.

Insider Activity

In related news, Director Raul Marcelo Claure sold 110,000 shares of the company’s stock in a transaction on Monday, November 4th. The shares were sold at an average price of $224.30, for a total value of $24,673,000.00. Following the completion of the sale, the director now owns 1,441,204 shares in the company, valued at $323,262,057.20. This represents a 7.09 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Andre Almeida purchased 3,808 shares of T-Mobile US stock in a transaction that occurred on Monday, December 9th. The stock was acquired at an average price of $235.72 per share, with a total value of $897,621.76. Following the transaction, the director now owns 3,808 shares in the company, valued at $897,621.76. The trade was a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last quarter, insiders sold 144,200 shares of company stock worth $32,736,303. Corporate insiders own 0.67% of the company’s stock.

Hedge Funds Weigh In On T-Mobile US

A number of large investors have recently bought and sold shares of TMUS. Susquehanna Fundamental Investments LLC acquired a new stake in T-Mobile US in the 2nd quarter valued at about $863,000. Quarry LP grew its stake in T-Mobile US by 12.5% in the 2nd quarter. Quarry LP now owns 748 shares of the Wireless communications provider’s stock valued at $132,000 after acquiring an additional 83 shares during the last quarter. EP Wealth Advisors LLC grew its stake in T-Mobile US by 13.9% in the 2nd quarter. EP Wealth Advisors LLC now owns 5,906 shares of the Wireless communications provider’s stock valued at $1,040,000 after acquiring an additional 721 shares during the last quarter. Truist Financial Corp boosted its stake in shares of T-Mobile US by 28.1% during the 2nd quarter. Truist Financial Corp now owns 484,891 shares of the Wireless communications provider’s stock worth $85,428,000 after purchasing an additional 106,489 shares during the last quarter. Finally, Advisory Alpha LLC boosted its stake in shares of T-Mobile US by 5.9% during the 2nd quarter. Advisory Alpha LLC now owns 1,419 shares of the Wireless communications provider’s stock worth $250,000 after purchasing an additional 79 shares during the last quarter. Hedge funds and other institutional investors own 42.49% of the company’s stock.

T-Mobile US Price Performance

The company has a market capitalization of $272.89 billion, a price-to-earnings ratio of 26.81, a PEG ratio of 1.08 and a beta of 0.56. The company’s 50 day simple moving average is $226.37 and its 200-day simple moving average is $212.66. The company has a current ratio of 1.08, a quick ratio of 0.99 and a debt-to-equity ratio of 1.23.

About T-Mobile US

T-Mobile US, Inc, together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to customers in the postpaid, prepaid, and wholesale and other services. It also provides wireless devices, including smartphones, wearables, tablets, home broadband routers, and other mobile communication devices, as well as wireless devices and accessories; financing through equipment installment plans; reinsurance for device insurance policies and extended warranty contracts; leasing through JUMP! On Demand; and High Speed Internet services.