T-Mobile Us (TMUS) Downgraded by Zacks Investment Research

Zacks Investment Research downgraded shares of T-Mobile Us (NASDAQ:TMUS) from a strong-buy rating to a hold rating in a research report sent to investors on Thursday morning.

According to Zacks, “T-Mobile has received shareholder approval for its combination with Sprint. This is a step forward in creating the New T-Mobile through which the company will bring robust competition to the 5G era. The New T-Mobile would have about 127 million customers and a strong closing balance sheet. The company has also collaborated with Ericsson and Nokia to accelerate the deployment of a nationwide 5G network. T-Mobile's network expansion strategy continues to be superior to its rivals to outstrip competition. The stock has outperformed the industry in the past year on an average. However, a highly competitive and saturated U.S. wireless market remains a major headwind. Intensifying competition could limit the company's ability to attract and retain customers and may adversely affect its operating results. T-Mobile launched several low-priced service plans, which has enhanced its revenues but not significantly improved the bottom line.”

A number of other research firms also recently issued reports on TMUS. BidaskClub raised shares of T-Mobile Us from a hold rating to a buy rating in a research report on Friday, September 28th. KeyCorp set a $76.00 target price on shares of T-Mobile Us and gave the stock a buy rating in a research report on Thursday, September 13th. Raymond James reissued a strong-buy rating and set a $85.00 target price on shares of T-Mobile Us in a research report on Wednesday, December 19th. Nomura increased their target price on shares of T-Mobile Us from $68.00 to $72.00 and gave the stock a neutral rating in a research report on Wednesday, October 31st. Finally, Moffett Nathanson reissued a buy rating on shares of T-Mobile Us in a research report on Wednesday, October 31st. One analyst has rated the stock with a sell rating, three have assigned a hold rating, thirteen have given a buy rating and one has given a strong buy rating to the stock. T-Mobile Us currently has a consensus rating of Buy and an average price target of $74.62.

TMUS opened at $69.00 on Thursday. The company has a market cap of $57.45 billion, a P/E ratio of 30.13, a price-to-earnings-growth ratio of 2.86 and a beta of 0.42. T-Mobile Us has a 1 year low of $55.09 and a 1 year high of $70.94. The company has a debt-to-equity ratio of 1.20, a current ratio of 0.85 and a quick ratio of 0.74.

T-Mobile Us (NASDAQ:TMUS) last posted its earnings results on Tuesday, October 30th. The Wireless communications provider reported $0.93 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.85 by $0.08. The firm had revenue of $10.84 billion during the quarter, compared to the consensus estimate of $10.73 billion. T-Mobile Us had a net margin of 11.63% and a return on equity of 11.44%. The company’s revenue was up 8.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.63 EPS. On average, analysts expect that T-Mobile Us will post 3.33 earnings per share for the current year.

In other T-Mobile Us news, COO G Michael Sievert sold 10,192 shares of the stock in a transaction that occurred on Tuesday, November 6th. The shares were sold at an average price of $69.08, for a total value of $704,063.36. Following the completion of the sale, the chief operating officer now owns 442,046 shares of the company’s stock, valued at $30,536,537.68. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP David R. Carey sold 2,000 shares of the stock in a transaction that occurred on Wednesday, November 7th. The shares were sold at an average price of $70.01, for a total transaction of $140,020.00. Following the completion of the sale, the executive vice president now directly owns 202,851 shares of the company’s stock, valued at approximately $14,201,598.51. The disclosure for this sale can be found here. Insiders sold 62,192 shares of company stock valued at $4,355,583 in the last ninety days. 0.37% of the stock is owned by corporate insiders.

A number of large investors have recently modified their holdings of TMUS. Sheets Smith Wealth Management grew its position in shares of T-Mobile Us by 14.9% during the fourth quarter. Sheets Smith Wealth Management now owns 27,031 shares of the Wireless communications provider’s stock worth $1,719,000 after buying an additional 3,503 shares in the last quarter. New England Research & Management Inc. acquired a new stake in shares of T-Mobile Us during the fourth quarter worth approximately $719,000. First Hawaiian Bank grew its position in shares of T-Mobile Us by 92.9% during the fourth quarter. First Hawaiian Bank now owns 26,929 shares of the Wireless communications provider’s stock worth $1,713,000 after buying an additional 12,966 shares in the last quarter. State of Alaska Department of Revenue grew its position in shares of T-Mobile Us by 14.2% during the fourth quarter. State of Alaska Department of Revenue now owns 70,550 shares of the Wireless communications provider’s stock worth $4,485,000 after buying an additional 8,776 shares in the last quarter. Finally, Cerebellum GP LLC grew its position in shares of T-Mobile Us by 54.5% during the fourth quarter. Cerebellum GP LLC now owns 4,140 shares of the Wireless communications provider’s stock worth $263,000 after buying an additional 1,461 shares in the last quarter. 32.83% of the stock is owned by institutional investors.

T-Mobile Us Company Profile

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 72.6 million customers in the postpaid, prepaid, and wholesale markets. It also provides wireless devices, including smartphones, tablets, and other mobile communication devices, as well as accessories that are manufactured by various suppliers.

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