T-Mobile Stock (TMUS) Plunges After SoftBank's $4.8B Share Sale: Report

T-Mobile Us Inc TMUS shares are trading lower during Tuesday’s session, falling over 4.25% to approximately $221.17, following a report that Japanese conglomerate SoftBank Group has raised $4.8 billion through a sale of T-Mobile shares.

What To Know: The move by SoftBank is causing significant pressure on TMUS shares, as it represents a large block of shares entering the market at a discount.

According to a Reuters report, SoftBank offloaded 21.5 million T-Mobile shares at $224 each. This price point reflects a discount of approximately 3% compared to T-Mobile’s closing price of $230.99 on Monday.

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Such a substantial share sale, particularly at a reduced price, typically creates selling pressure on a stock. Investors often view large insider sales as a potential signal of reduced confidence from a major shareholder or simply an increase in supply of shares, which can depress the market price.

The proceeds from the sale are reportedly earmarked for SoftBank’s aggressive investments in artificial intelligence initiatives.

Price Action: According to data from Benzinga Pro, TMUS shares are lower on heavy volume midday Tuesday. The current trading session’s volume of 6.207 million shares dwarfs the average trading volume over the past 100 days of 4.428 million shares.

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How To Buy TMUS Stock

By now you're likely curious about how to participate in the market for T-Mobile US – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of T-Mobile US, which is trading at $221.17 as of publishing time, $100 would buy you 0.45 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

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