Deutsche Telekom exec sells more than $93 million worth of T-Mobile stock

Senior executives at T-Mobile US, Inc. (NASDAQ: ) parent Deutsche Telekom AG (ETR: ) have sold a large amount of T-Mobile stock worth a total of more than $93 million. The series of transactions occurred between April 24 and April 26, with execution prices ranging from $161.40 to $164.38 per share.

The sale was part of a prearranged 10b5-1 trading plan, which allows insiders to sell stock at predetermined times to avoid being accused of insider trading. The plan was approved on November 29, 2023, and details of the sale were disclosed in a recent filing with the Securities and Exchange Commission.

On April 24, the average stock transaction price was US$162.98 and US$163.82, and the trading volume was 60,571 shares and 107,022 shares respectively. Another batch of 22,077 shares was sold that day at an average price of $164.38. On April 25, 24,758 shares continued to be sold at an average price of $162.21; 43,490 shares were sold at an average price of $163.19; the larger transaction involved 121,422 shares at a price of $164.12 per share. The selling spree ended on April 26 with three separate trades: 2,599 shares for $161.40; 50,300 shares for $162.38; and 64,675 shares for $163.33. A final total of 72,096 shares were sold during the period, at an average price of $163.88.

The transactions were reported by multiple entities within the Deutsche Telekom (OTC:) group, including T-Mobile Global Zwischenholding GmbH, Deutsche Telekom Holding BV and T-Mobile Global Holding GmbH. According to SEC filings, each reporting entity is a director and 10% owner of T-Mobile US, Inc.

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Investors often monitor insider sales to gauge executive sentiment about their company's stocks. However, sales under a 10b5-1 plan are scheduled in advance, which may lessen the importance of timing relative to market events or company performance.

Executives reiterated that they held only a pecuniary interest in the shares sold and, beyond that interest, did not claim beneficial ownership of the reported securities. The filing also includes a standard disclaimer that the report should not be considered an admission of beneficial ownership of the underlying securities.

Investment Professional Insights

Since T-Mobile US, Inc. (NASDAQ: TMUS ) saw a significant sale of stock by its parent company's executives, it's worth taking a deeper look at the company's current financial health and market performance. According to the latest data from InvestingPro, T-Mobile's market value is as high as $193.02 billion, reflecting its important position in the telecommunications field.

InvestingPro Tip highlights that T-Mobile is considered a well-known player in the wireless telecommunications services industry, which could provide some context to the size of the deal taking place. Additionally, the company is currently trading close to its 52-week high, with the stock accounting for 97.22% of its high, indicating strong market confidence in its stock.

From a valuation perspective, T-Mobile has a price-to-earnings ratio of 21.99 and a trailing twelve-month adjusted price-to-earnings ratio of 19.9 through the first quarter of 2024. This suggests the stock is trading at a low price-to-earnings ratio relative to recent earnings growth, a metric often used by savvy investors to gauge a stock's attractiveness. Additionally, the company's PEG ratio during the same period was just 0.16, suggesting that T-Mobile's earnings growth may not be fully reflected in its current stock price.

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For investors looking for more in-depth analysis, additional InvestingPro Tips are available to further inform investment decisions. For example, a message stating that management has been actively repurchasing stock could be interpreted as confidence in the company's future performance. On the other hand, it's worth noting that 4 analysts have downgraded earnings for the period ahead, which may warrant further attention.

To gain access to these insights and more, investors can explore further by subscribing to InvestingPro.Use coupon code PRONEWS24 Annual or biennial Pro and Pro+ subscriptions receive an additional 10% discount. T-Mobile US, Inc. also lists 9 additional InvestingPro Tips that can give you a deeper understanding of the company's prospects and stock potential.

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