MICHAEL SIEVERT Takes Money Off The Table, Sells $9.57M In T-Mobile US Stock

A substantial insider sell was reported on November 18, by MICHAEL SIEVERT, President and CEO at T-Mobile US TMUS, based on the recent SEC filing.

What Happened: SIEVERT's recent move involves selling 40,000 shares of T-Mobile US. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value is $9,568,800.

In the Tuesday's morning session, T-Mobile US's shares are currently trading at $235.09, experiencing a down of 0.82%.

Discovering T-Mobile US: A Closer Look

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.

A Deep Dive into T-Mobile US's Financials

Positive Revenue Trend: Examining T-Mobile US's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.73% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Communication Services sector.

Profitability Metrics: Unlocking Value

• Gross Margin: Achieving a high gross margin of 65.14%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): T-Mobile US's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 2.62.

Debt Management: T-Mobile US's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.81.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 27.03, T-Mobile US's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 3.51 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 12.71, 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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Navigating the Impact of Insider Transactions on Investments

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

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Closer Look at Important 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.

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