T-Mobile US (NASDAQ:TMUS) Shares Gap Down – Here’s Why

T-Mobile US, Inc. (NASDAQ:TMUS)’s stock price gapped down before the market opened on Thursday . The stock had previously closed at $190.94, but opened at $175.75. T-Mobile US shares last traded at $180.0180, with a volume of 929,049 shares.

Key Headlines Impacting T-Mobile US

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

• Positive Sentiment: T-Mobile beat second-quarter profit expectations, with adjusted EPS of $2.99, helped by strong service revenue and customers moving to higher-priced premium plans.
• Positive Sentiment: The company raised its full-year free cash flow outlook, which is a key bullish signal for investors because it supports dividends, buybacks, and financial flexibility.
• Positive Sentiment: T-Mobile continued its share repurchase program, including a multibillion-dollar buyback tranche, reinforcing management’s confidence in cash generation.
• Positive Sentiment: Several analysts remain constructive even after trimming price targets, with multiple firms still rating the stock Buy or Overweight.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. Benchmark decreased their target price on shares of T-Mobile US from $295.00 to $280.00 and set a “buy” rating on the stock in a research report on Friday. Weiss Ratings downgraded shares of T-Mobile US from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, June 15th. Morgan Stanley cut their price target on T-Mobile US from $260.00 to $230.00 and set an “overweight” rating for the company in a research note on Tuesday, July 7th. Royal Bank Of Canada reduced their price target on T-Mobile US from $240.00 to $230.00 and set an “outperform” rating on the stock in a research report on Monday, July 20th. Finally, Freedom Capital upgraded T-Mobile US from a “hold” rating to a “strong-buy” rating in a research note on Friday, April 17th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat, T-Mobile US currently has an average rating of “Moderate Buy” and a consensus target price of $252.88.

T-Mobile US Stock Up 5.7%

The stock has a market capitalization of $194.89 billion, a price-to-earnings ratio of 18.86, a price-to-earnings-growth ratio of 1.01 and a beta of 0.33. The company has a quick ratio of 0.97, a current ratio of 0.92 and a debt-to-equity ratio of 1.48. The stock has a 50 day moving average price of $184.53 and a 200 day moving average price of $195.66.

T-Mobile US (NASDAQ:TMUS) last released its quarterly earnings data on Thursday, July 23rd. The Wireless communications provider reported $2.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.59 by $0.40. The company had revenue of $22.79 billion during the quarter, compared to the consensus estimate of $22.95 billion. T-Mobile US had a return on equity of 20.16% and a net margin of 11.45%.The firm’s revenue was up 7.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.84 earnings per share. As a group, analysts forecast that T-Mobile US, Inc. will post 10.53 EPS for the current year.

T-Mobile US Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Friday, August 28th will be given a $1.02 dividend. This represents a $4.08 annualized dividend and a yield of 2.3%. The ex-dividend date is Friday, August 28th. T-Mobile US’s dividend payout ratio is 42.72%.

Insider Activity

In other news, COO Jon Freier sold 4,799 shares of T-Mobile US stock in a transaction 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 transaction, the chief operating officer owned 217,168 shares in the company, valued at approximately $41,261,920. The trade was a 2.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Andre Almeida acquired 5,097 shares of T-Mobile US stock in a transaction that occurred on Friday, May 1st. The stock was acquired at an average cost of $196.18 per share, for a total transaction of $999,929.46. Following the purchase, the insider owned 44,850 shares of the company’s stock, valued at $8,798,673. The trade was a 12.82% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 0.32% of the company’s stock.

Institutional Investors Weigh In On T-Mobile US

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Main Street Group LTD acquired a new position in shares of T-Mobile US in the first quarter worth approximately $25,000. JDM Financial Group LLC increased its position in T-Mobile US by 114.0% during the 4th quarter. JDM Financial Group LLC now owns 122 shares of the Wireless communications provider’s stock valued at $25,000 after purchasing an additional 65 shares during the period. Swiss RE Ltd. acquired a new stake in T-Mobile US during the 4th quarter valued at approximately $29,000. Turning Point Benefit Group Inc. raised its holdings in T-Mobile US by 3,825.0% during the 4th quarter. Turning Point Benefit Group Inc. now owns 157 shares of the Wireless communications provider’s stock worth $32,000 after purchasing an additional 153 shares during the last quarter. Finally, Sachetta LLC raised its holdings in T-Mobile US by 52.9% during the 1st quarter. Sachetta LLC now owns 159 shares of the Wireless communications provider’s stock worth $33,000 after purchasing an additional 55 shares during the last quarter. Institutional investors and hedge funds own 42.49% of the company’s stock.

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.