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

T-Mobile US, Inc. (NASDAQ:TMUS) shares gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. 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 traded.

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

T-Mobile US Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 13th. Stockholders of record on Friday, February 28th will be given a dividend of $0.88 per share. This represents a $3.52 dividend on an annualized basis and a dividend yield of 1.46%. The ex-dividend date of this dividend is Friday, February 28th. T-Mobile US’s payout ratio is presently 40.14%.

Analysts Set New Price Targets

Several analysts have weighed in on TMUS shares. Tigress Financial boosted their target price on shares of T-Mobile US from $235.00 to $280.00 and gave the stock a “buy” rating in a research report on Monday, December 2nd. Raymond James cut T-Mobile US from an “outperform” rating to a “market perform” rating in a research note on Friday, October 25th. Scotiabank lifted their price objective on T-Mobile US from $236.00 to $237.00 and gave the company a “sector perform” rating in a research note on Thursday, October 24th. Citigroup raised their target price on T-Mobile US from $210.00 to $254.00 and gave the stock a “buy” rating in a report on Monday, October 21st. Finally, BNP Paribas raised T-Mobile US to a “strong-buy” rating in a report on Friday, October 25th. Seven investment analysts have rated the stock with a hold rating, thirteen have issued a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $245.74.

Insider Transactions at T-Mobile US

In related news, Director Raul Marcelo Claure sold 110,000 shares of the stock in a transaction on Monday, November 4th. The stock was sold at an average price of $224.30, for a total value of $24,673,000.00. Following the transaction, the director now owns 1,441,204 shares of the company’s stock, valued at $323,262,057.20. This represents a 7.09 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO G Michael Sievert sold 20,000 shares of the firm’s stock in a transaction on Monday, November 11th. The shares were sold at an average price of $237.73, for a total value of $4,754,600.00. Following the completion of the sale, the chief executive officer now owns 378,124 shares in the company, valued at approximately $89,891,418.52. This represents a 5.02 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 144,200 shares of company stock worth $32,736,303. 0.67% of the stock is currently owned by insiders.

Institutional Investors Weigh In On T-Mobile US

Hedge funds and other institutional investors have recently made changes to their positions in the business. FMR LLC grew its position in shares of T-Mobile US by 13.4% in the 3rd quarter. FMR LLC now owns 12,893,770 shares of the Wireless communications provider’s stock valued at $2,660,758,000 after buying an additional 1,522,394 shares during the last quarter. Barclays PLC boosted its position in shares of T-Mobile US by 38.3% in the 3rd quarter. Barclays PLC now owns 3,165,153 shares of the Wireless communications provider’s stock valued at $653,160,000 after purchasing an additional 876,182 shares during the period. Wellington Management Group LLP grew its stake in T-Mobile US by 4.0% during the 3rd quarter. Wellington Management Group LLP now owns 15,524,529 shares of the Wireless communications provider’s stock worth $3,203,642,000 after buying an additional 602,786 shares during the last quarter. Franklin Resources Inc. lifted its stake in T-Mobile US by 9.9% in the third quarter. Franklin Resources Inc. now owns 6,553,703 shares of the Wireless communications provider’s stock valued at $1,448,426,000 after buying an additional 590,711 shares during the last quarter. Finally, Nordea Investment Management AB grew its position in shares of T-Mobile US by 36.9% during the fourth quarter. Nordea Investment Management AB now owns 1,473,540 shares of the Wireless communications provider’s stock worth $324,960,000 after acquiring an additional 397,345 shares during the last quarter. Institutional investors and hedge funds own 42.49% of the company’s stock.

T-Mobile US Stock Up 8.9 %

The firm has a market capitalization of $279.57 billion, a price-to-earnings ratio of 27.39, a PEG ratio of 1.08 and a beta of 0.56. The business’s fifty day moving average price is $226.37 and its 200 day moving average price 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.

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 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.