T-Mobile plans to hike stock buybacks by $3.6 billion this year to push its valuation higher
The carrier also filed notices warning of further layoffs.
T-Mobile works to increase the value of the company. | Image by PhoneArena
As you might have heard, T-Mobile is in talks with its majority stockholder, Deutsche Telekom, to combine in what would be the largest public merger in history based on valuation. The transaction would result in the formation of a holding company that would bid for shares of both telecom firms.
A T-Mobile-Deutsche Telekom combination would be the most valuable telecom company in the world
The newly formed company would be the most valuable telecom outfit in the world, surpassing China Mobile and its current $235 billion valuation. But getting such a complex deal through regulators like the FCC and the DOJ is going to be tough.
Wall Street did not like what it heard about the rumored combination, and on the first full trading day following the initial reports, shares of both companies fell sharply. T-Mobile's stock dropped $6.47 on Wednesday to close at $188.82 before rallying to close at $194.07 on Thursday, up $5.15 on the day. But selling returned today as the shares have tumbled $5.50 and are trading currently at $188.57.
T-Mobile insiders have been dumping the stock at an average price nearly 12% higher than the current price
Over the last six months, T-Mobile insiders have filed 39 transactions with the SEC involving T-Mobile shares, and 38 were stock sales with only one purchase. We've gone over some of these transactions in detail and also pointed out that some of these trades were done for tax or estate planning. The average selling price was $214.39, 11.7% higher than the current stock price.
T-Mobile subscribers, what are your feelings toward the carrier right now?
Looking to get investors to start buying the stock again, T-Mobile hiked 2026 shareholder return program authorization by $3.6 billion to a total of $18.2 billion, a 24.7% increase. The carrier will attempt to hit that target by buying back some of its own shares and paying out its cash dividend of $1.02 per share during each quarter.
T-Mobile targets a 2026 shareholder return nearly 25% higher than last year
T-Mobile will fund this program using available cash, proceeds from debt and other borrowing. The timing and the amount of the share buybacks will depend on variables such as market conditions, Board decisions, and company performance.
Last month, T-Mobile paid out a quarterly dividend of $1.02 and is scheduled to make its second-quarter $1.02 payout on June 11. Last year T-Mobile paid an 88 cent per share dividend for the first three quarters of the year before raising it to $1.02 for the fourth quarter.
Raising the dividend and increasing the number of shares being repurchased typically has a bullish effect on a stock, pushing it higher. Besides being the subject of a possible merger with Deutsche Telekom, T-Mobile is also in the midst of converting into a digital Mobile Network Operator (MNO)
T-Mobile lays off more employees
As a digital MNO, T-Mobile will still own its own network, spectrum, cell towers, and more. The difference is that instead of placing orders for phones, accessories, lines, and other items through a commissioned rep, the customer enters the order through the T-Life app. Even tasks like paying the invoice each month is handled via the app.
This allows T-Mobile to eliminate reps and close stores. As a result, the company will pay less commission and have lower lease costs allowing a greater percentage of company revenue to flow right to the bottom line.
Letter confirms that T-Mobile has filed a new WARN notice about layoffs coming to Tennessee in June. | Image by State of Tennessee
The carrier has been laying off employees, and after cutting 393 jobs in the state of Washington, where the carrier's headquarters can be found, we told you about even more pink slips handed out by the company. Today, fresh reports indicate that WARN filings made by T-Mobile this month reveal that layoffs are coming to the carrier in Tennessee, Texas, and Colorado starting in June.
In the United States, WARN stands for the Worker Adjustment and Retraining Notification Act. This Act forces companies with 100 or more employees to give workers at least 60 days notice before starting mass layoffs or closing factories.
In the latest round of layoffs, the largest city impacted will be Chattanooga, Tennessee, where 200 permanent layoffs will take place at T-Mobile's facility on Customer Delight Drive, starting June 8, 2026.
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