T-Mobile US Inc. (NASDAQ: TMUS) stock jumped 0.06% on Friday to $143.79 against a previous-day closing price of $143.70. With 2.64 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.51 million shares. During the session, the Telecom Services company that operates in wider Communication Services sector, reached to the highest price of $144.97 whereas the lowest price it dropped to was $143.34. The 52-week range on TMUS shows that it touched its highest point at $145.39 and its lowest point at $101.51 during that stretch. It currently has a 1-year price target of $171.16. Beta for the stock currently stands at 0.48.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TMUS was up-trending over the past week, with a rise of 1.47%, but this was up by 4.96% over a month. Three-month performance surged to 8.63% while six-month performance rose 31.22%. The stock gained 1.10% in the past year, while it has gained 23.98% so far this year. A look at the trailing 12-month EPS for TMUS yields 1.37 with Next year EPS estimates of 6.40. For the next quarter, that number is 0.76. This implies an EPS growth rate of 1.40% for this year and 179.83% for next year. EPS is expected to grow by 59.04% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 7.40%.
Float and Shares Shorts:
At present, 1.25 billion TMUS shares are outstanding with a float of 599.54 million shares on hand for trading. On Jul 14, 2022, short shares totaled 14.97 million, which was 1.19% higher than short shares on Jun 14, 2022. In addition to Mr. G. Michael Sievert as the firm’s Pres, CEO & Director, Mr. Peter Osvaldik serves as its Exec. VP & CFO.
Through their ownership of 42.19% of TMUS’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 83.15% of TMUS, in contrast to 23.86% held by mutual funds. Shares owned by individuals account for 18.31%. As the largest shareholder in TMUS with 3.57% of the stake, The Vanguard Group, Inc. holds 44,748,321 shares worth 44,748,321. A second-largest stockholder of TMUS, BlackRock Fund Advisors, holds 27,163,658 shares, controlling over 2.17% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in TMUS, holding 24,754,443 shares or 1.98% stake. With a 1.86% stake in TMUS, the Government Pension Fund – Global is the largest stakeholder. A total of 23,312,735 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 1.48% of TMUS stock, is the second-largest Mutual Fund holder. It holds 18,485,029 shares valued at 2.49 billion. Invesco QQQ Trust holds 1.45% of the stake in TMUS, owning 18,157,127 shares worth 2.44 billion.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, TMUS reported revenue of $19.70B and operating income of $1.19B. Over the past year, revenue came in at $80.23B while operating income stood at $5.16B. It generated -$108.00M net income for the quarter, which came to $1.72B over the last twelve months. The EBITDA in the recently reported quarter was $4.66B and diluted EPS was -$0.09. EBITDA for the full year was $20.65B.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TMUS since 32 analysts follow the stock currently. There are 28 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With TMUS analysts setting a high price target of $230.00 and a low target of $128.00, the average target price over the next 12 months is $174.85. Based on these targets, TMUS could surge 59.96% to reach the target high and fall by -10.98% to reach the target low. Reaching the average price target will result in a growth of 21.6% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. TMUS will report FY 2022 earnings on 02/09/2023. Analysts have provided yearly estimates in a range of $2.92 being high and $1.48 being low. For TMUS, this leads to a yearly average estimate of $2.26. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. T-Mobile US Inc. surprised analysts by -$0.31 when it reported -$0.09 EPS against a consensus estimate of $0.22. The surprise factor in the prior quarter was $0.13. Based on analyst estimates, the high estimate for the next quarter is $0.91 and the low estimate is $0.50. The average estimate for the next quarter is thus $0.74.
Summary of Insider Activity:
Insiders traded TMUS stock several times over the past three months with 6 Buys and 4 Sells. In these transactions, 11,382 shares were bought while 42,825 shares were sold. The number of buy transactions has increased to 30 while that of sell transactions has risen to 42 over the past year. The total number of shares bought during that period was 88,319,983 while 46,115,884 shares were sold.