MARCELO RAUL CLAURE Executes Sell Order: Offloads $2.16M In T-Mobile US Stock

Revealing a significant insider sell on June 12, MARCELO RAUL CLAURE, Board Member at T-Mobile US TMUS, as per the latest SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, CLAURE sold 12,000 shares of T-Mobile US. The total transaction value is $2,162,640.

Tracking the Thursday's morning session, T-Mobile US shares are trading at $174.17, showing a up of 0.22%.

Delving into T-Mobile US's Background

Deutsche Telekom merged its T-Mobile USA unit with prepaid specialist MetroPCS in 2013, and that firm merged with Sprint in 2020, creating the second-largest wireless carrier in the us T-Mobile now serves 77 million postpaid and 21 million prepaid phone customers, equal to around 30% of the us retail wireless market. The firm entered the fixed-wireless broadband market aggressively in 2021 and now serves more than 5 million residential and business customers. In addition, T-Mobile provides wholesale services to resellers.

Financial Insights: T-Mobile US

Revenue Growth: T-Mobile US's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -0.19%. This indicates a decrease in the company's top-line earnings. When compared to others in the Communication Services sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Navigating Financial Profits:

• Gross Margin: With a high gross margin of 63.83%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): T-Mobile US's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 2.0.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.86.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 23.65, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 2.64, T-Mobile US's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 11.21, the company's market valuation exceeds industry averages.

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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Why Pay Attention to Insider Transactions

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Understanding Crucial Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of T-Mobile US's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.