T-Mobile US (NASDAQ:TMUS) Stock Price Down 6.9% – Time to Sell?

T-Mobile US, Inc. (NASDAQ:TMUS)’s share price traded down 6.9% on Friday. The stock traded as low as $147.88 and last traded at $147.8750. 5,349,472 shares were traded during mid-day trading, a decline of 5% from the average daily volume of 5,652,503 shares. The stock had previously closed at $158.79.

Key Headlines Impacting T-Mobile US

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

• Positive Sentiment: Erste Group Bank modestly increased its fiscal 2027 EPS forecast for T-Mobile US to $13.81 from $13.79, signaling slightly improved confidence in the company’s longer-term earnings outlook. Erste Group Bank raises T-Mobile EPS estimate
• Neutral Sentiment: T-Mobile’s third-quarter results are due October 28. Analysts expect subscriber additions, broadband growth and device promotions to support revenue, although higher expenses and aggressive competition could limit profitability. T-Mobile third-quarter earnings preview
• Negative Sentiment: SpaceX is reportedly negotiating with cellular infrastructure providers for thousands of tower locations after acquiring additional mobile spectrum. Its potential launch of a fourth national wireless carrier could increase pricing pressure, customer-acquisition costs and network investment requirements for T-Mobile. Why T-Mobile US stock dropped
• Negative Sentiment: Citigroup reportedly sees further valuation pressure for established wireless carriers, while tower operators could benefit from SpaceX leasing network infrastructure. This relative advantage for tower companies reinforced concerns about T-Mobile’s competitive position. Citi commentary on SpaceX wireless expansion

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on TMUS shares. Royal Bank Of Canada dropped their target price on shares of T-Mobile US from $240.00 to $230.00 and set an “outperform” rating for the company in a report on Monday, July 20th. Sanford C. Bernstein reissued a “neutral” rating on shares of T-Mobile US in a research report on Monday, September 28th. Morgan Stanley lowered their price objective on T-Mobile US from $260.00 to $230.00 and set an “overweight” rating for the company in a research report on Tuesday, July 7th. JPMorgan Chase & Co. cut their price objective on shares of T-Mobile US from $275.00 to $260.00 and set an “overweight” rating on the stock in a report on Monday, September 21st. Finally, Moffett Nathanson raised their target price on shares of T-Mobile US from $242.00 to $246.00 and gave the company a “buy” rating in a research note on Tuesday, September 22nd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $242.21.

T-Mobile US Trading Down 7.7%

The stock has a 50-day simple moving average of $170.37 and a two-hundred day simple moving average of $180.61. The company has a debt-to-equity ratio of 1.48, a quick ratio of 0.83 and a current ratio of 0.92. The firm has a market cap of $157.19 billion, a PE ratio of 15.34, a price-to-earnings-growth ratio of 0.91 and a beta of 0.33.

T-Mobile US (NASDAQ:TMUS) last announced its quarterly earnings results on Thursday, July 23rd. The Wireless communications provider reported $2.99 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.59 by $0.40. T-Mobile US had a net margin of 11.45% and a return on equity of 20.16%. The firm had revenue of $22.79 billion for the quarter, compared to the consensus estimate of $22.95 billion. During the same quarter last year, the firm posted $2.84 EPS. The business’s quarterly revenue was up 7.9% compared to the same quarter last year. As a group, sell-side analysts anticipate that T-Mobile US, Inc. will post 11.17 EPS for the current year.

T-Mobile US Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Wednesday, November 25th will be issued a dividend of $1.17 per share. The ex-dividend date of this dividend is Wednesday, November 25th. This is a positive change from T-Mobile US’s previous quarterly dividend of $1.02. This represents a $4.68 annualized dividend and a dividend yield of 3.2%. T-Mobile US’s dividend payout ratio is presently 42.72%.

Insiders Place Their Bets

In related news, CAO Daniel James Drobac sold 772 shares of the stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $178.33, for a total transaction of $137,670.76. Following the transaction, the chief accounting officer owned 35,118 shares in the company, valued at $6,262,592.94. This represents a 2.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.32% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On T-Mobile US

A number of large investors have recently added to or reduced their stakes in TMUS. BlackRock Inc. bought a new position in shares of T-Mobile US during the 2nd quarter valued at $6,625,275,000. Bank of New York Mellon Corp purchased a new position in shares of T-Mobile US in the 2nd quarter worth $839,194,000. Bank of America Corp DE bought a new stake in shares of T-Mobile US in the second quarter worth $758,977,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of T-Mobile US by 1.1% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,076,380 shares of the Wireless communications provider’s stock worth $683,731,000 after acquiring an additional 43,783 shares during the period. Finally, Amundi increased its position in T-Mobile US by 2.6% during the second quarter. Amundi now owns 3,775,445 shares of the Wireless communications provider’s stock valued at $633,255,000 after acquiring an additional 95,650 shares during the last quarter. Institutional investors own 42.49% of the company’s stock.

T-Mobile US Company Profile

T-Mobile US, Inc (NASDAQ: TMUS) is a wireless communications company that provides mobile voice, messaging and data services to consumers, businesses and government customers in the United States, Puerto Rico and the U.S. Virgin Islands. Its offerings include postpaid and prepaid wireless plans, connected devices, broadband internet and other communications services.

The company operates a nationwide wireless network, including 5G services, and sells smartphones, tablets, connected devices and related accessories through retail stores, online channels and third-party distributors.