MetroPCS (NYSE:PCS) Stock Tumbles after Reuters Reports Sprint Nextel (S) Unlikely to Maker Counteroffer – PCS, TDS, VZ, SHEN

Shares of MetroPCS Communications Inc (NYSE:PCS), which decided to merge with T-Mobile USA Inc in October, plunged around 8.2% in early trading session after Reuters posted that Sprint Nextel Corporation (NYSE:S) is not likely to make a counteroffer.

Shares of the Richardson, Texas-based MetroPCS traded around $9.89 at 7:47 AM in premarket trading session after ending at $10.77 in New York on Tuesday. The company’s stock had surged 24% current year through Dec 3.

Sprint Nextel making an offer for MetroPCS would complicate the ongoing regulatory review of a separate agreement with Japan’s Softbank Corp, as reported by Reuters, which mentioned people with knowledge about the matter.

Shifting reader’s focus to broader market, let us consider market performance of other stocks that significantly affect same sector. Telephone & Data Systems, Inc. (NYSE:TDS) fell -0.66% to settle at $22.62, Verizon Communications Inc. (NYSE:VZ) moved down -0.98% to end at $43.67 while Shenandoah Telecommunications Company (NASDAQ:SHEN) jumped +3.32% to finish at $14.01 on Tuesday.

MetroPCS Communications Inc (NYSE:PCS) last session’s volume of 17.62 million shares was surprisingly higher than its average volume of 7.82 million shares. The stock after opening at $10.02 hit high price of $10.12 and then closed at $9.96 by scoring -7.52%.

The liquidity measure in recent quarter results of the company was recorded 4.06 as current ratio and on the other side the debt to equity ratio was 1.43 and long-term debt to equity ratio remained at 1.42. The Company had total cash of $2.57 billion at hand and a book value per share as $9.15 in the most recent quarter.

The stock’s price volatility was 3.25% for a week and 3.28% for a month as well as price volatility’s Average True Range for 14 days was 0.38 and its beta remained at 0.87.

PCS generated revenue of $5.06 billion in the previous twelve months and earned $552.51 million. The Company showed a positive 10.99% in the net profit margin as well as in its operating margin which remained at 18.15%. Company’s annual sales growth for the past five years was 25.66%.

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