T-Mobile Stock Price Analysis: Eliminating the Biggest Factor Holding Its Stock Price Down

T-Mobile’s stock price has been a topic of interest for investors, especially after the company completed its merger with Sprint in 2020. One of the significant factors that held T-Mobile’s stock price down was the agreement that Softbank would receive 48.8 million shares back if T-Mobile’s stock price stayed above $150 for 45 days on a volume-weighted average price basis before December 31, 2025. However, in December 2023, T-Mobile’s shares surpassed the $150 mark, triggering the contract, and T-Mobile issued 48.8 million shares worth about $7.6 billion to Softbank.

Despite this dilution event, T-Mobile’s stock price is expected to perform well in 2024. The company has a massive capital return program, with plans to return $60 billion to shareholders from September 2022 through 2025. The board authorized a $14 billion share repurchase program in the fall of 2022 and added another $15.25 billion in authorization in 2023. T-Mobile has already bought back 104.3 million shares for $14.8 billion through October 2022, and it is expected to offset the 48.8 million shares it just issued to Softbank within a matter of months.

In addition to the share repurchase program, T-Mobile’s strong performance in the 5G market is another factor that could contribute to its stock price growth in 2024. The company is investing heavily in its network infrastructure, which is expected to drive demand for its services and attract more customers.

Overall, T-Mobile’s stock price is expected to rebound in 2024, as the dilution event has been addressed, and the company’s capital return program and strong 5G performance are expected to drive growth. Investors should keep an eye on T-Mobile’s share repurchase program and its progress in the 5G market to determine the potential for further stock price growth.