Executives from Deutsche Telekom AG (ETR:DTEGn), the parent company of T-Mobile US, Inc. (NASDAQ:TMUS), have sold a significant number of shares in the U.S. telecommunications company. According to recent filings, transactions totaling approximately $42 million took place, with share prices ranging from $161.87 to $163.40.
The sales were conducted under a pre-arranged 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid accusations of insider trading. The largest transaction involved the sale of 188,570 shares at a weighted average price of $161.87, while the smallest was for 1,100 shares at an average of $162.41. Additional sales of 58,551 and 13,119 shares took place at average prices of $163.08 and $163.40, respectively.
Following these transactions, the executives continue to hold a substantial number of T-Mobile US shares, with post-sale ownership figures in the hundreds of millions. The sales were executed over two consecutive days, with the bulk occurring on March 27, 2024.
Investors often monitor insider sales for signs of executives' confidence in the company's future performance. In this case, the sales represent a planned divestment that had been arranged the previous year. The executives involved have disclaimed beneficial ownership of the reported securities except to the extent of their pecuniary interest.
T-Mobile US, a major player in the radio telephone communications sector, remains a significant investment for Deutsche Telekom (OTC:DTEGY) AG, as indicated by the large stake it continues to maintain even after the reported sales.
InvestingPro Insights
Analyzing the recent insider sales at T-Mobile US, Inc. (NASDAQ:TMUS), investors should consider the company's current financial health and market performance. With a robust market capitalization of $193.72 billion and a trailing twelve-month revenue of $78.56 billion, T-Mobile US demonstrates substantial size and scale within the telecommunications industry. Despite a slight revenue decline of -1.27% in the last twelve months as of Q4 2023, the company has maintained a healthy gross profit margin of 62.57%.
InvestingPro data reveals a Price/Earnings (P/E) ratio of 23.28, with an adjusted P/E ratio of 20.4 for the same period, indicating a valuation that reflects the company's earnings power. The Price to Book (P/B) ratio of 2.99 suggests that the market values the company at nearly three times its book value. Notably, T-Mobile US is trading near its 52-week high, with the price at 96.79% of this peak, reflecting strong investor confidence.
Two noteworthy InvestingPro Tips for T-Mobile US include the company's aggressive share buyback strategy, a sign of management's confidence in the company's value, and the fact that it is a prominent player in the Wireless Telecommunication Services industry. While three analysts have recently revised their earnings expectations downwards for the upcoming period, it's important to note that the company is expected to remain profitable this year and has been profitable over the last twelve months. Investors looking for more comprehensive analysis can find an additional 6 InvestingPro Tips at Investing.com/pro/TMUS. For those interested, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes access to these valuable insights.
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