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Deutsche Telekom executives sell over $93 million in T-Mobile shares

Published 04/27/2024, 08:28 AM
© Reuters

Executives from Deutsche Telekom AG (ETR:DTEGn), the parent company of T-Mobile US, Inc. (NASDAQ:TMUS), have sold a significant amount of T-Mobile shares, totaling over $93 million. The series of transactions, which took place between April 24 and April 26, were executed at varying prices ranging from $161.40 to $164.38 per share.

The sales are part of a prearranged 10b5-1 trading plan, a mechanism that allows insiders to sell shares at predetermined times to avoid accusations of insider trading. This plan had been adopted on November 29, 2023, and details of the sales were disclosed in a recent filing with the Securities and Exchange Commission.

On April 24, shares were sold at average prices of $162.98 and $163.82, with the transactions amounting to 60,571 and 107,022 shares respectively. Another batch of 22,077 shares was sold at an average price of $164.38 on the same day. On April 25, sales continued with 24,758 shares at an average price of $162.21, 43,490 shares at $163.19, and a larger transaction involving 121,422 shares at $164.12 each. The selling spree concluded on April 26 with three separate transactions: 2,599 shares at $161.40, 50,300 shares at $162.38, and 64,675 shares at $163.33. The final sale of the period was 72,096 shares at an average price of $163.88.

The transactions were reported by various entities within the Deutsche Telekom (OTC:DTEGY) group, including T-Mobile Global Zwischenholding GmbH, Deutsche Telekom Holding B.V., and T-Mobile Global Holding GmbH. Each reporting entity is a director and a ten percent owner of T-Mobile US, Inc., according to the SEC filing.

Investors often monitor insider sales for insights into executive sentiment regarding their company's stock. However, sales under a 10b5-1 plan are scheduled in advance, which can diminish the significance of timing in relation to market events or company performance.

The executives have reaffirmed that they only hold a pecuniary interest in the shares sold and do not claim beneficial ownership of the reported securities beyond this interest. The filings also include a standard disclaimer that the reporting should not be considered an admission of beneficial ownership of the securities in question.

InvestingPro Insights

As T-Mobile US, Inc. (NASDAQ:TMUS) sees a flurry of share sales by executives of its parent company, it's essential to delve into the company's current financial health and market performance. According to the latest data from InvestingPro, T-Mobile's market capitalization stands at a robust $193.02 billion, reflecting its significant presence in the telecommunications sector.

An InvestingPro Tip highlights that T-Mobile is regarded as a prominent player in the Wireless Telecommunication Services industry, which could provide some context to the scale of the transactions taking place. Additionally, the company is trading near its 52-week high, with a price percentage of 97.22% of the high, signaling strong market confidence in its stock.

From a valuation perspective, T-Mobile's P/E ratio is currently at 21.99, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at 19.9. This indicates that the stock is trading at a low P/E ratio relative to near-term earnings growth, a metric that savvy investors often use to gauge the attractiveness of a stock. Moreover, the company's PEG ratio over the same period is at a mere 0.16, suggesting that T-Mobile's earnings growth might not be fully reflected in its current share price.

For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, which could further inform investment decisions. For instance, one tip notes that management has been aggressively buying back shares, a sign that could be interpreted as confidence in the company's future performance. On the flip side, it's also worth noting that 4 analysts have revised their earnings downwards for the upcoming period, which may warrant a closer look.

To access these insights and more, investors can explore further with a subscription to InvestingPro. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 9 additional InvestingPro Tips listed for T-Mobile US, Inc. that could provide a richer understanding of the company's outlook and stock potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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