Benzinga - by Benzinga Insights, Benzinga Staff Writer.
KELVIN WESTBROOK, Board Member at T-Mobile US (NASDAQ:TMUS), reported an insider sell on May 15, according to a new SEC filing.
What Happened: WESTBROOK opted to sell 10,879 shares of T-Mobile US, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The transaction's total worth stands at $1,778,607.
Monitoring the market, T-Mobile US's shares down by 0.0% at $162.68 during Thursday's morning.
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 U.S. T-Mobile now serves 76 million postpaid and 22 million prepaid phone customers, equal to around 30% of the U.S. retail wireless market. The firm entered the fixed-wireless broadband market aggressively in 2021 and now serves nearly 5 million residential and business customers. In addition, T-Mobile provides wholesale services to resellers.
Key Indicators: T-Mobile US's Financial Health Revenue Challenges: T-Mobile US's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -0.19%. This indicates a decrease in top-line earnings. When compared to others in the Communication Services sector, the company excelled with a growth rate higher than the average among peers.
Profitability Metrics: Unlocking Value
- Gross Margin: The company excels with a remarkable gross margin of 63.83%, indicating superior cost efficiency and profitability compared to its industry peers.
- Earnings per Share (EPS): With an EPS below industry norms, T-Mobile US exhibits below-average bottom-line performance with a current EPS of 2.0.
Evaluating Valuation:
- Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 22.13, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
- Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 2.47 as compared to the industry average, the stock might be considered overvalued based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 10.73, the company's market valuation exceeds industry averages.
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Exploring the Significance of Insider Trading Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
Navigating the World of Insider Transaction Codes Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.
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