Sprint Stock Buy Or Sell
The outlook for TMUS stock boils down to Sprint merger synergies and expectations for a big share buyback. Another catalyst for T-Mobile US (TMUS) is gaining market share owing to its 5G wireless spectrum advantage vs. AT&T (T) and Verizon Communications (VZ).
sprint stock buy or sell
In mid-March, T-Mobile acquired Mint Mobile, a provider of prepaid wireless services for $1.35 billion in cash and stock. Mint operates a direct-to-consumer, online-only sales platform, which has proven to be extremely popular with Gen Z and Millennial customers, analysts say.
In addition, TMUS stock has come a long way since U.S. regulators blocked AT&T's proposed acquisition of T-Mobile in 2011. A rejuvenated T-Mobile in late 2013 unleashed its "Uncarrier"-branded marketing campaign along with aggressive price discounts.
Also, TMUS stock has an Accumulation/Distribution Rating of D. That rating analyzes price and volume changes in a stock during the prior 13 weeks of trading. The rating, on an A+ to E scale, measures institutional buying and selling in a stock. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
I have now bought and sold Sprint Corporation (S) stock a couple of times since the beginning of 2019 after its merger deal with T-Mobile US, Inc. (TMUS) was first announced. I have taken some nice profits while keeping my risk low by playing with small portions of my portfolio which have paid off nicely both times. As the merger with T-Mobile enters its end game scenarios, I again remain on the sidelines as downside risk for Sprint now becomes exaggerated after the stock's latest pop. I am prepared to take a position in Sprint again, should an opportunity present itself, as these merger deals usually take far longer than most investors would reasonably expect.
It has been a long and winding road since the Sprint/T-Mobile $26.5B merger deal was first announced in June of 2018. I decided to take a small position in Sprint in May of 2019 at $6.74 a share, after the initial deal had cooled off, and Sprint's stock price was at an entry point with some nice potential upside coming in my opinion.
My thoughts came to fruition and I sold my Sprint stock almost exactly two months later in July of 2019 at $7.50 a share for a nice 11.2% gain in two months (67.6 annualized). Taking profits after that pop in the stock turned out to be a great decision as the stock stagnated for a couple of months before taking a prolonged downturn slump as the bearish attitudes towards the deal prevailed over the end of 2019 and into 2020.
After sitting on the sidelines for the bear run, I started to get interested in Sprint stock again sub $6 as I believed then, and still believe, that the merger deal will ultimately go through. I pulled the trigger and bought a small position in Sprint stock again in November of 2019 for $5.89 a share, although I did not write an article on the purchase at that time. I held the stock for about three months this time before selling in early February 2020 after the stock's latest pop for $8.42 a share for a nice 43% gain (171% annualized).
On April 1, 2020, Sprint Corporation completed their merger with T-Mobile US, which effectively made Sprint a subsidiary of T-Mobile until the Sprint brand officially discontinued in the beginning of August. Leadership, background, and stock changes happened immediately, with customer-side changes happening over time. The Sprint brand officially discontinued on August 2, 2020. Billing was already showing the T-Mobile brand, and on this date all retail, customer service, and all other company branding switched to the T-Mobile brand. New rate plans were also introduced as well for all new and existing customers from both companies, though all will be grandfathered into their current plan for at least 3 years should they choose not to switch to a new T-Mobile plan.
Sprint Corporation entered the Canadian market in the early 1990s as a reseller of bulk long-distance telephone lines that it bought from domestic companies. Under Canadian foreign ownership regulations, Sprint could not open its own network. In 1993, Sprint entered into a strategic alliance with Call-Net Enterprises, a Canadian long-distance service, and bought 25 percent of the company. Call-Net's long-distance service was renamed "Sprint Canada", and expanded to include landline and internet services. In 2005, Call-Net and Sprint Canada's 600,000 customers were acquired by Rogers Communications.
In 1999, Sprint began recombining its local telecom, long-distance, wireline, and wireless business units into a new company, in an initiative known internally as "One Sprint". In April 2004, the separately traded wireless tracking stock PCS was absorbed into the New York Stock Exchange FON ticker symbol, Sprint's former ticker symbol (FON stood for "Fiber Optic Network", but was also a homophone of the word "phone"). This was challenged in many lawsuits by Sprint PCS shareholders who felt their stock was devalued because it was trading at the ratio of 1 share of PCS stock for 1/2 share of FON stock. The PCS shareholders claimed a loss of 1.3 billion to 3.4 billion dollars.
On April 19, 2011, Sprint Nextel announced it agreed to pay at least $1 billion to Clearwire so it can operate on the 4G WiMAX network through 2012, and a later agreement, announced in December 2011, specified terms allowing Sprint, its subsidiaries, and wholesale customers to continue having access to the Clearwire 4G WiMAX network through 2015. On July 9, 2013, Sprint Nextel acquired the remaining stock shares it did not already own in Clearwire and its assets.
One other company that's worth noting: . David Einhorn's Greenlight Capital bought more than 55 million shares worth about $254 million. Sprint's stock is up more than 40 percent in the last year and the company recently announced subscriber growth for the first time in three years.
Berkshire Hathaway sold all of its 6 million shares in the last quarter. Reportedly, it bought that stock more than two years ago at an average price that was less than half of what it traded for at the end of 2010.
U.S. Cellular has reached a definitive agreement to sell its Chicago, St. Louis, central Illinois and three other Midwest markets (the "Transaction Markets") to subsidiaries of Sprint Nextel Corporation (NYSE: S) for $480 million. The sale includes PCS spectrum and approximately 585,000 customers, or about 10 percent of U.S. Cellular's total customer base.
Answering these questions in detail is beyond the scope of this article. Suffice to say that our research continues to affirm that relative long-term consistency, not short-term sprints, is what can lead to better retirement readiness outcomes for TDF investors.
The short-term performance race is often decided by how aggressive the glide path is relative to peers. But the TDF with a higher allocation to stocks that leads the pack when stocks are rising is vulnerable to underperforming in a stock market downturn.
Translation: the era of aggressive price competition in wireless is over. Looking forward, we can expect T-Mobile, AT&T, and Verizon to nestle into a cozy triopoly that returns immense profits to their shareholders. T-Mobile is already prepared to deliver on this prospect. On March 11, it predicted to investors that its free cash flow will be flush enough to support a $60 billion stock buyback within five years.
Stock buybacks benefit the investor class, whose members are disproportionately the wealthiest people in America; recent surveys show that the top 10 percent of households own approximately 80 percent of all stocks. In contrast, nearly all households across the income distribution buy wireless services, and low-income households particularly favor prepaid plans, a segment where T-Mobile and Sprint had competed vigorously pre-merger. With its latest proclamations to investors, T-Mobile celebrates the fact that its merger will transfer billions of wealth from average Americans to the rich, further widening the chasm between the haves and have-nots. For this reason and many others, the T-Mobile/Sprint deal will go down as one of the worst merger-enforcement decisions in decades.
Shares of Sprint (S) jumped 110.3% in February, according to data from S&P Global Market Intelligence. The mobile wireless stock skyrocketed after a federal court ruled against an antitrust challenge seeking to block the company's proposed merger with T-Mobile (TMUS 0.53%).
U.S. district court judge Victor Marrero issued a ruling on Feb. 11 that paved the way for T-Mobile to acquire Sprint and prompted substantial gains for each stock. T-Mobile climbed 13.9% in February's trading, and it appears that the merger is on track to be completed in the near future.
Following the victory in court, Sprint and T-Mobile renegotiated the terms of the deal. The new terms saw T-Mobile shareholders get allotment of Sprint shares in the buyout, and the shift and stock gains prompted Bloomberg to raise its estimated value of the acquisition to $37 billion -- up from the deal's previous estimated value of $26.5 billion. Judge Marrero stated that Sprint may have been unable to survive as a stand-alone business if the merger with T-Mobile were prevented.
Despite the sell-off this month, the massive jump for Sprint's valuation following the district court's decision seems to reflect the sentiment that merging with T-Mobile was the best outcome for the company's shareholders. T-Mobile president Mike Sievert has suggested that the acquisition could close by April 1.
CI Worldcom Inc., the nation's second-largest long-distance telephone company, has agreed to acquire the Sprint Corporation in a stock swap valued at $108 billion, people close to the talks said Monday. The boards of both companies approved the merger Monday night.
But it was not until mid-September that discussions between MCI Worldcom and Sprint began to take shape. Sprint has two separately traded stocks: one for its local and long-distance business, the other for its wireless business. MCI Worldcom is offering a little more than one share of its stock for each Sprint share in its local and long-distance business, valued Monday at about $76, or $68.4 billion. MCI Worldcom will also swap shares of its own stock for shares in the wireless company valued at $33.7 billion, offering investors a premium of 0.1547 in MCI Worldcom stock, or $5.4 billion. 041b061a72