On November 12, a recent SEC filing unveiled that NESTOR CANO, EVP at T-Mobile US TMUS made an insider sell.

What Happened: CANO opted to sell 11,100 shares of T-Mobile US, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction’s total worth stands at $2,561,308.

As of Wednesday morning, T-Mobile US shares are down by 0.09%, currently priced at $238.79.

Get to Know T-Mobile US Better

Deutsche Telekom merged its T-Mobile USA unit with prepaid specialist MetroPCS in 2013, and that firm merged with Sprint in 2020, creating the second-largest wireless carrier in the US. T-Mobile now serves 77 million postpaid and 21 million prepaid phone customers, equal to around 30% of the US retail wireless market. The firm entered the fixed-wireless broadband market aggressively in 2021 and now serves more than 5 million residential and business customers. In addition, T-Mobile provides wholesale services to resellers.

Breaking Down T-Mobile US’s Financial Performance

Revenue Growth: T-Mobile US’s remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 4.73%. This signifies a substantial increase in the company’s top-line earnings. When compared to others in the Communication Services sector, the company excelled with a growth rate higher than the average among peers.

Navigating Financial Profits:

• Gross Margin: The company excels with a remarkable gross margin of 65.14%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): T-Mobile US’s EPS reflects a decline, falling below the industry average with a current EPS of 2.62.

Debt Management: With a below-average debt-to-equity ratio of 1.81, T-Mobile US adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: T-Mobile US’s current Price to Earnings (P/E) ratio of 27.25 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 3.54 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 12.78, the company’s market valuation exceeds industry averages.

Market Capitalization: Surpassing industry standards, the company’s market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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The Importance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor’s decision-making process.

In the realm of legality, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

A Closer Look at Important Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of T-Mobile US’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.