Sprint Corp (NYSE:S) Shares Pop 4.5% After Leaked Documents Suggest Elimination of 2-Year Contracts

Share

Sprint Corp (NYSE:S) shares are up big in afternoon trading today. This comes on the heels of Android Central publishing a document from a claimed anonymous internal tipster with the company.

The alleged Sprint Corp (NYSE:S) document reads:
2-year Pricing Ending
Lease and Easy Pay are our main offers

Effective today, subsidy agreements can only be offered on a reactive basis to select customers. Customers who are activating a new account will not have the option to purchase phones or MBB via subsidy (2-year) agreement. Tablets are still able to be purchased via subsidy. Upgrades and Add-a-lines can still be purchased via subsidy on a reactive basis only.

Easy Pay and Leasing offer your customer the best value and most flexibility. It is important you are asking qualifying questions and explaining why Lease/Easy Pay is the best option for your customer’s individual needs!

To coincide with this change, the 2 year activation types listed in RQ will be modified to include “2 year” in the name. For example, NEW will now appear as 2 YEAR NEW, TABLET UPGRADE will now appear as 2 YEAR TABLET UPGRADE, etc. This will not affect the sales process in any way.

Sprint now apparently will join the likes of T-Mobile and Verizon who have already made the switch away from 2-year contracts, and AT&T who will be doing the same starting today.

The stock is up 4.48% or $0.15 following the news, hitting $3.5 per share. About 6.18M shares traded hands. S has declined 24.89% since June 4, 2015 and is downtrending. It has underperformed the S&P500 by 19.03%.

From a total of 13 analysts covering Sprint Nextel Corporation (NYSE:S) stock, 3 rate it a “Buy”, 1 a “Sell”, and 9 a “Hold”. This means that 23% of the ratings are positive. The highest target price is $32 while the lowest target price is $3. The mean of all analyst targets is $4.18 which is 19.43% above today’s ($3.5) stock price. Sprint Nextel Corporation was the topic of 22 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on November 23 with a “Sector Perform” rating. Vetr upgraded shares to a”Strong-Buy” rating and a $5.17 target share price in their report from a September 21. Keefe Bruyette & Woods downgraded S stock in a recent report from October 21 to a “Mkt Perform” rating. Zacks upgraded the rating on August 9. Zacks has a “Hold” rating and a $3.75 price target on shares. Finally, DA Davidson initiated the stock with a “Neutral” rating in a report they issued on an October 1.

The institutional sentiment increased to 0.88 in Q2 2015. It’s up 0.18, from 0.7 in 2015Q2. The ratio increased, as 48 funds sold all their Sprint Corp shares they owned while 75 reduced their positions. 34 funds bought stakes while 74 increased their total positions. Institutions now own 508.83 million shares which is 15.12% less than the previous share count of 599.46 million in 2015Q2.

Mig Capital Llc holds 5.23% of its total portfolio in Sprint Corp, equating to 5.65 million shares. Litespeed Management L.L.C. owns 9.44 million shares representing 4.47% of their total US portfolio. Moreover, Nevsky Capital Llp has 3.44% of their total portfolio invested in the company, equating to 5.20 million shares. The Hong Kong-based Parametrica Management Ltd has a total of 3.01% of their portfolio invested in the stock. Hoertkorn Richard Charles, a California-based fund reported 742,615 shares owned.

Since February 27, 2015, the stock had 11 buys, and 1 sale for a total of $713.68 million in net activity. Softbank Group Corp bought 14.53 million shares worth $60.60M. Jones Jaime sold 38,879 shares worth $183,548. Wunsch Charles R sold 121,411 shares worth $573,093. Euteneuer Joseph J bought 3,600 shares worth $18,180. The insider Hallock Jeffrey D sold 54,792 shares worth $288,819.

Sprint Corporation is a holding company. The company has a market cap of $13.28 billion. The Company, along with its subsidiaries is a wireless communications firm offering a range of wireless and wireline communications services and products. It currently has negative earnings. The Firm operates in two divisions: Wireless and Wireline.

COMMENTS: