Sprint (S, $7.21) and T-Mobile (TMUS, $77.40) merger may be off the table over antitrust issues
Shares of Sprint plunged sharply on Monday and were even interrupted for a brief period following conflicting messages from regulators regarding the company’s projected merger with T-Mobile.
Initially, the companies committed to helping the mobile broadband in rural America expand faster and hence the recommended approval came by the Federal Communications Commission of the $26.5 billion merger. Following the news, Sprint’s shares jumped about 27% and T-Mobile’s shares popped almost 7%.
But soon after, the said companies received discouraging messages from the Department of Justice (DoJ) over antitrust issues that could potentially threaten the merger. The DoJ has a different statutory mandate that may not resolve antitrust concerns regarding the deal.
Following this news, Sprint shares were halted for a brief period but resumed trading nearly 12% up. However, it was still short of its 27% gain at its high point Monday. The stock ended the day up 18.8%. Shares of T-Mobile were up 3.9% by Monday’s market close.
The reason behind the merger for both the companies was to compete with rivals AT&T (T) and Verizon (VZ), and help roll out next-generation wireless service, 5G. But some politicians and public-interest groups have raised pricing and antitrust concerns about the deal. Previously, the Obama administration has also thwarted the merger on grounds of negative competition.
S's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for S turned positive on January 03, 2025. Looking at past instances where S's MACD turned positive, the stock continued to rise in of 35 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on January 22, 2025. You may want to consider a long position or call options on S as a result. In of 74 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where S advanced for three days, in of 220 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 169 cases where S Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for S moved out of overbought territory on January 29, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 20 similar instances where the indicator moved out of overbought territory. In of the 20 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 8 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where S declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
S broke above its upper Bollinger Band on January 28, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. S’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. S’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.474) is normal, around the industry mean (31.656). P/E Ratio (0.000) is within average values for comparable stocks, (160.113). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.763). Dividend Yield (0.000) settles around the average of (0.085) among similar stocks. P/S Ratio (10.929) is also within normal values, averaging (59.296).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a provider of wireless and wired telecommunications services
Industry PackagedSoftware