In a series of transactions, an insider of T-Mobile US, Inc. (NASDAQ:TMUS) has sold a significant amount of company stock, totaling over $61 million. The sales occurred over two days, with prices ranging between $162.11 and $164.14 per share.
The transactions were disclosed in a recent SEC filing, which indicated that the sales were executed in accordance with a pre-arranged trading plan. This plan, known as a 10b5-1 trading plan, was adopted on November 29, 2023, allowing company insiders to sell shares at predetermined times to avoid any accusations of trading on non-public information.
On the first day of the reported transactions, the insider sold 164,108 shares at an average price of $162.24, with individual sales prices varying from $161.82 to $163.81. Additionally, another batch of 14,035 shares was sold at an average price of $163.20, with prices ranging from $162.82 to $163.81. The last transaction of the day involved 11,527 shares, which were sold at an average price of $164.14, with a range from $163.82 to $164.73.
The following day saw the insider selling 184,134 shares at an average price of $162.11, within a price range of $161.61 to $162.60. A smaller transaction of 5,536 shares was also executed at an average price of $162.70, with prices ranging from $162.61 to $162.79.
Investors often monitor insider transactions as they can provide insights into how executives and directors view the company's stock value and future prospects. However, it is important to note that there are various reasons why insiders may sell stock, and such transactions do not always reflect their outlook on the company's performance.
T-Mobile US, Inc. is a major player in the telecommunications industry, providing wireless services to customers across the United States. Insider transactions are routinely filed with the SEC and are publicly available for investors to review.
InvestingPro Insights
T-Mobile US, Inc. (NASDAQ:TMUS) has been under the investor's microscope following significant insider stock sales. As the telecommunications giant navigates the market, there are several key metrics and insights from InvestingPro that can provide a deeper understanding of its current financial health and future prospects.
The recent transactions by an insider, totaling over $61 million, come at a time when T-Mobile is trading near its 52-week high, with its price at 96.18% of this peak. This could indicate a strategic move by the insider to capitalize on the stock's strong performance. Moreover, the company's stock generally trades with low price volatility, which might offer some reassurance to investors concerned about market fluctuations.
From a valuation standpoint, T-Mobile's adjusted P/E ratio for the last twelve months as of Q1 2024 stands at 19.42, which is considered low relative to its near-term earnings growth. This could suggest that the stock is undervalued and may be attractive to value investors. Additionally, its PEG ratio during the same period is notably low at 0.15, hinting at potentially robust earnings growth relative to its share price.
With a market capitalization of $190.8 billion, T-Mobile is a heavyweight in the Wireless Telecommunication Services industry, and its financial performance backs this up. The company has been profitable over the last twelve months, and analysts predict it will remain profitable this year. This is complemented by a solid gross profit margin of 63.15% for the last twelve months as of Q1 2024.
For investors seeking further insights, there are additional InvestingPro Tips available, which include details on management's share buyback activities and analyst earnings revisions. These tips can be accessed through InvestingPro's platform at https://www.investing.com/pro/TMUS. Moreover, using the coupon code PRONEWS24, investors can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a wealth of data and analysis to inform their investment decisions. There are a total of 10 additional InvestingPro Tips for T-Mobile US, Inc. that can provide further context and guidance.
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