Insiders Are Selling Big on T-Mobile US, Inc. (TMUS)

With 4 sell/buy ratio, T-Mobile US, Inc. (NASDAQ:TMUS) experienced more insider selling than insider buying over the last three months. Could this be a sign for outside investors to start selling as well? TMUS recorded 4 sales on the open market in the last three months. They sold nearly 62,192 shares while purchases amounted to zero shares that period. Looking even further back to 12 months, corporate insiders offloaded 832,969 shares when buyers snapped up 4,231,266 shares. The 12-month’s totals signify about a 0.2-to-1 sell/buy ratio.

Carey David R parted with a total of 2 thousand shares of T-Mobile US, Inc. (TMUS) at average share price of $70.01. This insider trade in the company took place on 11/07/2018. The total for the sales was set at $140.02 thousand. After this transaction, the EVP, Corporate Services account balance stood at 244.6 thousand shares. The stock lost -3.2 percent since that insider sale. On 11/07/2018, Keys Thomas Christopher, Pres. MetroPCS, sold 50 thousand shares at a price per share of $70.23. This removed 3.51 million shares from the insider’s fortune and the stock saw a -3.5 percent retreat in value since the news became public. This transaction left 291.88 thousand shares in the Pres. MetroPCS account.

On 11/06/2018, President & COO Sievert G Michael performed a sale transaction worth $704.06 thousand. This sale at $69.08 each has eliminated 10.19 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -1.9 percent decrease since the transaction was reported. The insider now is left with 436.96 thousand shares remaining in the account. Carey David R, who performs the EVP, Corporate Services job, sold 2 thousand shares for $141.14 thousand. The disposal occurred on 10/01/2018 was priced at $70.57 per share. The share price plunged -3.97 percent since the reporting date. Carey David R now left with a stake of 246.6 thousand TMUS stock worth $16.7 million after the insider selling.

The 12-month median price target for T-Mobile US, Inc. (TMUS) assigned by the analysts stands at $79, which represents a return potential of 16.66 percent when compared to the closing price of the stock of $67.72 on Wednesday, January 09. The lowest price target for the stock is $70 — slightly more than 3.37 percent from TMUS’s current share price. The stock will probably climb 15.58 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $90price as 12-month high target. This represents a whopping 32.9 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 57.44 on daily chart, which may remain a cause for concern. If the price breaks below $66.29 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $68.55 mark may result into a pull-back move towards $69.39 level. The stock is currently hovering around the first support level of $67. Below this, the next support is placed in the zone of $66.29. Till the time, the TMUS stock trades above this level, bulls have nothing to fear.

Shares of T-Mobile US, Inc. (TMUS) are trading at a P/E ratio of 21.12 times earnings reported for the past 12 months. The industry TMUS operates in has an average P/E of 14.19. Its P/E ratio went as low as 24.24X and as high as 650.55 over the 5-year span. Further, it is sporting a 1.3 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.31. 57.2 percent is the gross profit margin for T-Mobile US, Inc. and operating margin sits at 12.4 percent. Along with this, the net profit margin is 11.6 percent.

On 9th of January, T-Mobile US, Inc. (NASDAQ:TMUS) shares ended lower after a volatile session. The shares dropped -0.05 points or -0.07 percent at $67.72 with a heavy trade volume of 4.499 million shares. After opening the session at $68.65, the shares went as high as $68.67 and as low as $67.12, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $55.6 billion and now has 820.36 million shares outstanding. T-Mobile US, Inc. (TMUS) stock has gained 3.09 percent of market value in 21 trading days.

In last reported earnings results, TMUS earned $0.93 per share, better than the $0.85, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $10.8B, better than the $10.7B analysts expected. Earnings are estimated to increase by 55.3 percent this year, 21 percent next year and continue to increase by -3.1 percent annually for the next 5 years. Investors will get their next glimpse of TMUS’s Q4 earnings on February 09. Analysts are forecasting revenue to climb 5.6 percent to $11.4B in the next fiscal quarter, while earnings are seen soaring by nearly 14.75 percent to $0.7 per share. History has shown that shares in T-Mobile US, Inc. have gone up on 15 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings.

TMUS stock has a trailing 3-year beta of 0.35, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.2 a share in the trailing twelve months. The stock’s value has surged 6.46 percent year to date (YTD) against a rise of 4.02 percent in 12 month’s time. The company’s shares still trade -4.54 percent away from its 1-year high of $70.94 and 22.93 percent up from 52-week low of $55.09. The average consensus rating on the company is 1.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.