Price performance of Sprint
Earlier in this series, we looked into some aspects of Sprint’s (S) value proposition among major US wireless players. We saw that Sprint’s forward EV/EBITDA (or enterprise value to earnings before interest, tax, depreciation, and amortization) multiple was the lowest among these players as of March 28, 2016. Meanwhile, T-Mobile (TMUS) had a lower figure in this metric than the integrated players, AT&T (T) and Verizon (VZ). Now we will look at select market-based views and metrics for Sprint.
Let’s start with the price performance of Sprint’s stock. The price movements of Sprint during the one-month and three-month periods were in the negative territory as of March 28, 2016.
In the past three-month period, the price has fallen by ~15.3%. The price fell ~5.2% in the past month as of March 28, 2016.
Wall Street’s view on Sprint
Now let’s look at analysts’ perspective on Sprint as of March 28, 2016. ~70% of the total analysts covering the stock gave it a “hold” while ~23.3% gave it a sell. The remaining ~6.7% of these analyst recommendations were “buy.”
In addition, the average target price for Sprint from Wall Street’s analysts was ~$3.54 as of March 28, 2016. The closing price of the telecom company was $3.26 as of the same date. For diversified exposure to telecom players in the US, you may consider investing in the SPDR S&P 500 ETF (SPY).
The ETF held a total of ~2.4% in US telecom players at the end of December 2015.