In a series of transactions, executives from Deutsche Telekom AG (ETR:DTEGn), a major shareholder and director in T-Mobile US, Inc. (NASDAQ:TMUS), have sold a significant amount of shares in the telecom giant. According to recent filings, a total of $70,638,726 worth of T-Mobile US shares were sold, with prices ranging from $167.79 to $170.72 per share.
The sales were conducted under a 10b5-1 trading plan, which was adopted on November 29, 2023. This type of trading plan allows company insiders to sell shares over a predetermined period of time, providing an affirmative defense against accusations of trading on non-public, material information.
The transactions took place on May 29 and May 30, 2024, with varying numbers of shares sold at different weighted average prices. On the first day, 76,077 shares were sold at an average price of $167.79, and 132,560 shares at $168.64. The following day, the executives sold 27,894 shares at $169.01, 95,328 shares at $170.17, and another 85,415 shares at $170.72.
These sales have slightly adjusted the executives' total holdings in T-Mobile US, yet they remain significant shareholders with hundreds of millions of shares still under their control. The exact number of shares sold at each price point within the reported ranges is available upon written request from the issuer, any security holder of the issuer, or the staff of the Securities and Exchange Commission.
For Deutsche Telekom (OTC:DTEGY) AG and its subsidiaries, which are wholly-owned and include T-Mobile Global Zwischenholding GmbH, T-Mobile Global Holding GmbH, and Deutsche Telekom Holding B.V., this move represents a notable change in their investment in T-Mobile US. However, the executives have disclaimed beneficial ownership of the reported securities except to the extent of their pecuniary interest.
Investors and market watchers often keep a close eye on insider transactions for hints about a company's financial health and management's confidence in the business's prospects. With T-Mobile US being a key player in the telecommunications sector, these sales by Deutsche Telekom executives are sure to draw attention from stakeholders and industry analysts alike.
InvestingPro Insights
As T-Mobile US, Inc. (NASDAQ:TMUS) navigates through a period of insider sales, the company's financial metrics and market performance remain a focal point for investors. With a robust market capitalization of $198.45 billion, T-Mobile US is a heavyweight in the telecommunications industry. The company's price-to-earnings (P/E) ratio stands at 22.91, reflecting its current valuation relative to its earnings. Adjusting for the last twelve months as of Q1 2024, this ratio becomes even more favorable at 20.66.
One of the key InvestingPro Tips highlights that T-Mobile US's stock is trading at a low P/E ratio relative to near-term earnings growth, which could indicate that the stock is undervalued compared to its growth potential. Additionally, the management's aggressive share buyback program is a sign of confidence in the company's value, potentially offering support to the stock price.
Investors should also note that T-Mobile US has been profitable over the last twelve months, with a reported gross profit of $49.58 billion and an operating income margin of 20.71%. This profitability is further underscored by the fact that analysts predict the company will continue to be profitable this year. Moreover, the stock is trading near its 52-week high, at 99.78% of the peak, which may reflect investor optimism about the company's prospects.
For those looking to delve deeper into T-Mobile US's performance and strategic moves, InvestingPro offers additional insights. There are currently 9 more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/TMUS. Readers interested in a comprehensive analysis can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of data and expert analysis to inform their investment decisions.
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