SFTBF - Why T-Mobile Stock Could Break $150 This Year
2023-09-13 10:06:30 ET
T-Mobile (NASDAQ: TMUS) stock has consistently butted heads with a $150 share price, but that could change soon.
There's a good reason T-Mobile shares are stuck below $150. As part of its merger agreement with Sprint, Softbank (OTC: SFTB.Y) (OTC: SFTBF) forfeited 48.8 million shares of T-Mobile stock it was entitled to. Softbank will receive those 48.8 million shares back from T-Mobile if the stock price stays above $150 for 45 days (on a volume-weighted average price basis) before Dec. 31, 2025.
It's no surprise, then, that a lot of people are selling shares when they climb above $150. The stock will become diluted (read, less valuable) if T-Mobile has to issue an additional 48.8 million shares to Softbank.
For further details see:
Why T-Mobile Stock Could Break $150 This Year