Executives at Deutsche Telekom AG (ETR:DTEGn), a major shareholder in T-Mobile US, Inc. (NASDAQ:TMUS), have sold a significant amount of shares in the telecommunications company. The transactions, which took place between June 5 and June 7, resulted in the sale of T-Mobile US shares totaling over $122 million.
The sales were conducted at varying prices, with the range for the shares sold on June 5 being between $178.32 and $179.29. The following day, shares were sold at prices ranging from $179.40 to $182.40. On the final day of the reported transactions, the shares were sold at prices between $179.39 and $180.66. These price ranges represent the weighted average prices for the shares sold on each respective day.
The largest transactions included the sale of 175,127 shares at an average price of $179.7818, and another substantial sale of 204,844 shares at an average price of $179.9465. Other notable sales were 169,214 shares at $179.8315 and 47,077 shares at $180.757. Smaller batches of shares were also sold, including lots of 54,00; 39,392; 14,439; and 4,559 shares at average prices ranging from $178.9857 to $182.5113.
Deutsche Telekom (OTC:DTEGY) AG, through its various holdings including T-Mobile Global Holding GmbH, T-Mobile Global Zwischenholding GmbH, and Deutsche Telekom Holding B.V., is a significant investor in T-Mobile US, with each entity being a director and ten percent owner of the company. The transactions were carried out in accordance with a 10b5-1 trading plan, which was adopted on November 29, 2023. These plans allow company insiders to sell shares over a predetermined period of time, reducing the potential for accusations of insider trading.
The reporting executives have indicated that they may be considered directors by deputization of T-Mobile US, Inc. due to their roles in Deutsche Telekom AG and its subsidiaries. However, they have disclaimed beneficial ownership of the reported securities except to the extent of their pecuniary interest.
The sales were disclosed in a Form 4 filing with the Securities and Exchange Commission, with Christoph Appel signing as attorney-in-fact for the executives. The Form 4 provides transparency into the trading activities of company insiders, offering investors and the market valuable information about executive stock transactions.
In other recent news, T-Mobile US, Inc. has been making strategic moves in the telecommunications industry. The company announced the acquisition of a significant portion of UScellular's wireless operations for $4.4 billion. This deal, which includes both cash and debt components, is expected to enhance T-Mobile's network reach, particularly in rural areas, and improve service and coverage. Scotiabank and Benchmark, both maintaining their respective price targets, view this acquisition optimistically, citing T-Mobile's history of successful integrations and the potential for network expansion and service improvement.
In addition to the UScellular deal, T-Mobile USA, a direct wholly-owned subsidiary of T-Mobile US, Inc., has issued €2 billion in aggregate principal amount of senior notes. The proceeds from this sale are intended for general corporate purposes, which may include share repurchases, potential dividends, and the refinancing of existing debt. These recent developments reflect T-Mobile's active pursuit of growth and consolidation within the telecommunications sector.
InvestingPro Insights
Following the recent insider sales at T-Mobile US, Inc. (NASDAQ:TMUS), market participants may find the current InvestingPro Data and InvestingPro Tips insightful for assessing the company's stock position. With a robust market capitalization of $211.57 billion, T-Mobile US stands as a formidable entity in the telecommunications sector. The company's P/E ratio is currently at 24.24, which adjusts to a slightly lower 21.53 when considering the last twelve months as of Q1 2024. This adjustment indicates a valuation that is potentially more attractive relative to near-term earnings growth.
Investors tracking performance metrics will note that T-Mobile US has a PEG ratio for the last twelve months as of Q1 2024 at an exceptionally low 0.17, suggesting that the company's earnings growth may not be fully reflected in its stock price. Additionally, the company's stock is trading near its 52-week high, with the price at 98.45% of this peak, reflecting a strong year-to-date price total return of 13.03%.
An InvestingPro Tip highlights that T-Mobile US has been actively engaging in share buybacks, a sign that management is confident in the company's value and future prospects. Moreover, the company is recognized as a prominent player in the Wireless Telecommunication Services industry, which could be a reassuring factor for investors considering the broader industry landscape.
For those interested in further analysis and additional InvestingPro Tips, such as the stock's low price volatility and the analysts' profitability predictions for this year, T-Mobile US has a total of 10 additional tips available on InvestingPro. These insights can be accessed by visiting https://www.investing.com/pro/TMUS. To get an even deeper understanding of T-Mobile US's financial health and stock potential, readers can use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.