TMUS Traipses Higher After Top- and Bottom-Line Beats

The mobile phone firm said its growing subscribers and expanding its 5G network

Deputy Editor
May 5, 2021 at 10:08 AM
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T-Mobile Us Inc (NASDAQ:TMUS) is coming off its first-quarter earnings report, posting profits of 74 cents per share on revenue of $19.8 billion, topping analyst expectations. The company said it continued to add subscribers and expand its 5G network, sending the stock up 2% to trade at $131. 

The stock has received no less than four price-target hikes, the highest coming from Deutsche Bank to $188 from $185. The brokerage bunch was already bullish on TMUS coming into today, with a 12-month consensus price target of $162.21 -- a 26.3% premium to last night's close -- and 13 of the 15 analysts in coverage calling T-Mobile stock a "buy" or better. 

Option traders have also been overwhelmingly optimistic. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), TMUS sports a 50-day call/put volume ratio of 4.05, which stands higher than all other readings from the past year. Plus, the security's Schaeffer's put/call open interest ratio (SOIR) of 0.25 stands in the extremely low 4th percentile of its annual range, meaning short-term option traders have rarely been more call-biased. 

The stock has made a valiant effort to separate itself from it's early pandemic trough, adding over 45% in the last 12 months. The security lost some of its momentum near the $135 mark -- briefly toppling the level in early January to hit an all-time high of $135.54, though this surge has since subsided. Most of this winter pullback,however, was captured by the equity's 200-day moving average. 

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