Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Teresa Taylor, Board Member at T-Mobile US (NASDAQ:TMUS), reported an insider sell on February 7, according to a new SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday outlined that Taylor executed a sale of 12,022 shares of T-Mobile US with a total value of $1,945,159.
During Thursday's morning session, T-Mobile US shares down by 0.14%, currently priced at $161.56.
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.
T-Mobile US's Economic Impact: An Analysis Revenue Growth: T-Mobile US's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 1.01%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Communication Services sector.
Holistic Profitability Examination:
- Gross Margin: The company issues a cost efficiency warning with a low gross margin of 58.98%, indicating potential difficulties in maintaining profitability compared to its 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 1.74.
In-Depth Valuation Examination:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 23.34 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 2.47, 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): With an impressive EV/EBITDA ratio of 11.05, T-Mobile US demonstrates exemplary market valuation, surpassing industry averages.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Uncovering the Importance of Insider Activity While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per 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.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
Important Transaction Codes Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies 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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.