Prospera Financial Services Inc. has enhanced its investment in T-Mobile US, Inc. (NASDAQ: TMUS) by 8.4% during the second quarter of the fiscal year. This increase was disclosed in the company’s latest 13F filing with the Securities and Exchange Commission (SEC). Following the purchase of an additional 1,776 shares, Prospera now holds a total of 22,946 shares, valued at approximately $5,468,000.
Several other institutional investors have also adjusted their positions in T-Mobile US recently. Notably, Nuveen LLC established a significant new stake in the company during the first quarter, investing $618,248,000. Assenagon Asset Management S.A. increased its holdings by an impressive 518.8% during the second quarter, now owning 1,383,922 shares valued at around $329,733,000 after purchasing an additional 1,160,275 shares. Other notable investors include the Canada Pension Plan Investment Board, which raised its stake by 14.3%, and Goldman Sachs Group Inc., which boosted its holdings by 25.4% in the same period.
As of now, institutional investors and hedge funds collectively own 42.49% of T-Mobile US shares. In related news, Telekom Ag Deutsche, a director at the company, sold 69,840 shares on August 14, 2023, for a total of $17,520,760.80. Following this transaction, the director retains ownership of approximately 636,271,724 shares, valued at about $159.62 billion.
Recent Financial Performance
T-Mobile US reported its quarterly earnings on October 23, 2023, revealing an earnings per share (EPS) of $2.41, surpassing analyst expectations of $2.40 by $0.01. The company generated revenue of $21.96 billion, exceeding forecasts of $21.61 billion. This marks an 8.9% increase in revenue compared to the same quarter last year. The previous year’s EPS stood at $2.61.
Analysts project that T-Mobile US will achieve an EPS of $10.37 for the current fiscal year.
Dividend Increase and Analyst Ratings
In addition to its earnings report, T-Mobile US announced a quarterly dividend of $1.02, set to be paid on December 11, 2023, to shareholders recorded as of November 26, 2023. This new dividend reflects an annualized yield of 2.0% and signifies an increase from the previous quarterly dividend of $0.88. The company’s dividend payout ratio stands at 39.23%.
Recent analyst ratings reflect a positive outlook for T-Mobile US. BNP Paribas Exane raised its price target from $290.00 to $305.00, assigning an “outperform” rating. Moffett Nathanson increased their target from $210.00 to $230.00 with a “neutral” rating. Additionally, HSBC upgraded T-Mobile from “hold” to “buy,” setting a price target of $285.00.
Overall, T-Mobile US stock has received three “Strong Buy” ratings, seventeen “Buy” ratings, ten “Hold” ratings, and two “Sell” ratings. The average rating currently stands at “Moderate Buy” with a consensus price target of $266.63.
T-Mobile US, Inc., together with its subsidiaries, provides comprehensive mobile communications services throughout the United States, Puerto Rico, and the United States Virgin Islands. The company offers a variety of services, including voice, messaging, and data, as well as wireless devices and accessories.
