It makes sense and dollars to buy T-Mobile US Inc. (TMUS) stock

T-Mobile US Inc. (NASDAQ: TMUS) stock jumped 1.14% on Thursday to $143.12 against a previous-day closing price of $141.50. With 7.17 million shares changed hands, the volume of the stock remained heavier than its average volume of 4.84 million shares. During the session, the Telecom Services company that operates in wider Communication Services sector, reached to the highest price of $144.12 whereas the lowest price it dropped to was $141.17. The 52-week range on TMUS shows that it touched its highest point at $154.38 and its lowest point at $124.92 during that stretch. It currently has a 1-year price target of $176.81. Beta for the stock currently stands at 0.54.

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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 4.25%, but this was up by 3.28% over a month. Three-month performance surged to 11.77% while six-month performance fell -0.90%. The stock gained 3.91% in the past year, while it has gained 2.23% so far this year. A look at the trailing 12-month EPS for TMUS yields 5.29 with Next year EPS estimates of 9.90. For the next quarter, that number is 1.96. This implies an EPS growth rate of -3.80% for this year and 33.98% for next year. EPS is expected to grow by 68.35% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -2.40%.

Float and Shares Shorts:

At present, 1.19 billion TMUS shares are outstanding with a float of 520.80 million shares on hand for trading. On Aug 14, 2023, short shares totaled 23.19 million, which was 1.97% higher than short shares on Jul 13, 2023. In addition to Mr. G. Michael Sievert as the firm’s Pres, CEO & Director, Mr. Neville R. Ray serves as its Pres & Strategic Network Advisor to the CEO.

Institutional Ownership:

Through their ownership of 43.24% of TMUS’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 88.61% of TMUS, in contrast to 25.35% held by mutual funds. Shares owned by individuals account for 16.56%. As the largest shareholder in TMUS with 3.90% of the stake, The Vanguard Group, Inc. holds 45,865,635 shares worth 45,865,635. A second-largest stockholder of TMUS, T. Rowe Price Associates, Inc., holds 36,300,662 shares, controlling over 3.09% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in TMUS, holding 26,930,527 shares or 2.29% stake. With a 1.74% stake in TMUS, the Invesco QQQ Trust is the largest stakeholder. A total of 20,491,271 shares are owned by the mutual fund manager. The Government Pension Fund – Global, which owns about 1.71% of TMUS stock, is the second-largest Mutual Fund holder. It holds 20,072,604 shares valued at 2.77 billion. Vanguard Total Stock Market ETF holds 1.59% of the stake in TMUS, owning 18,681,093 shares worth 2.57 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, 2023, TMUS reported revenue of $19.70B and operating income of $1.19B. The EBITDA in the recently reported quarter was $4.66B and diluted EPS was -$0.09.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TMUS since 0 analysts follow the stock currently. 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 $210.00 and a low target of $148.00, the average target price over the next 12 months is $176.85. Based on these targets, TMUS could surge 46.73% to reach the target high and rise by 3.41% to reach the target low. Reaching the average price target will result in a growth of 23.57% 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.

Summary of Insider Activity:

Insiders traded TMUS stock several times over the past three months with 8 Buys and 3 Sells. In these transactions, 32,823 shares were bought while 24,677 shares were sold. The number of buy transactions has increased to 32 while that of sell transactions has risen to 60 over the past year. The total number of shares bought during that period was 21,050,705 while 21,110,596 shares were sold.

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