NESTOR CANO Takes Money Off The Table, Sells $1.68M In T-Mobile US Stock

Disclosed on August 21, NESTOR CANO, EVP at T-Mobile US TMUS, executed a substantial insider sell as per the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday outlined that CANO executed a sale of 8,500 shares of T-Mobile US with a total value of $1,676,285.

As of Thursday morning, T-Mobile US shares are up by 0.2%, currently priced at $195.85.

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.

T-Mobile US's Financial Performance

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 3.0% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Communication Services sector.

Key Profitability Indicators:

• Gross Margin: The company sets a benchmark with a high gross margin of 65.85%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): T-Mobile US's EPS is below the industry average. The company faced challenges with a current EPS of 2.5. This suggests a potential decline in earnings.

Debt Management: With a below-average debt-to-equity ratio of 1.82, T-Mobile US adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: T-Mobile US's P/E ratio of 24.49 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 2.93, 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): T-Mobile US's EV/EBITDA ratio stands at 11.62, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

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 Insider Transactions Are Key in Investment Decisions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

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.

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