AT&T (NYSE:T) Shares Down 1% - Should You Sell?

Key Points

• AT&T shares fell about 1% on Wednesday and traded near $20.49, with volume surging well above normal. The stock has also recently hit a new 52-week low, reflecting cautious trader sentiment.
• Despite the weak share performance, AT&T is getting some support from positive business updates, including expansion of its Build-A-Plan offering to make it easier to bundle wireless and home internet services. Analysts also continue to say the stock may be undervalued, citing fiber strength and long-term fundamentals.
• AT&T’s latest quarter showed solid earnings and revenue beats, and the company reaffirmed FY2026 EPS guidance of 2.25-2.35. It also declared a quarterly dividend of $0.2775 per share, implying a 5.4% yield.

Shares of AT&T Inc. (NYSE:T - Get Free Report) traded down 1% during trading on Wednesday . The stock traded as low as $20.29 and last traded at $20.49. Approximately 129,410,537 shares were traded during mid-day trading, an increase of 180% from the average session volume of 46,246,594 shares. The stock had previously closed at $20.70.

Key Headlines Impacting AT&T

Here are the key news stories impacting AT&T this week:

• Positive Sentiment: AT&T expanded its Build-A-Plan service to make it easier for customers to bundle customizable wireless plans with home internet, which could help reduce churn, improve customer stickiness, and support wireless and broadband growth. Article Title
• Positive Sentiment: Analysts and market commentary continue to argue that AT&T may still be undervalued, with fiber strength helping offset subscriber churn and supporting the company’s longer-term fundamentals. Article Title
• Neutral Sentiment: AT&T also introduced more flexible plan options, including the ability for customers to scale phone service up or down and add home internet more easily, a move that appears aimed at improving retention rather than driving an immediate catalyst. Article Title
• Neutral Sentiment: Dish DBS filed for bankruptcy after delays related to a separate AT&T transaction, underscoring ongoing deal complexity around AT&T’s spectrum-related moves, but the direct stock impact is unclear. Article Title
• Negative Sentiment: Investor concern is rising that SpaceX’s satellite-phone ambitions could pressure AT&T and other major U.S. wireless carriers by creating a new competitive threat in mobile connectivity. Article Title
• Negative Sentiment: AT&T recently hit a new 52-week low and has been part of a broader telecom selloff, signaling that traders remain cautious about the stock’s near-term outlook. Article Title

Analysts Set New Price Targets

Several research analysts recently weighed in on the stock. Weiss Ratings cut shares of AT&T from a "buy (b)" rating to a "buy (b-)" rating in a report on Friday, May 29th. Scotiabank decreased their price objective on shares of AT&T from $31.50 to $31.00 and set a "sector perform" rating for the company in a research note on Thursday, April 23rd. Wall Street Zen raised shares of AT&T from a "sell" rating to a "hold" rating in a research report on Saturday, June 20th. Morgan Stanley assumed coverage on AT&T in a report on Thursday, April 16th. They issued an "overweight" rating and a $30.00 target price for the company. Finally, Oppenheimer downgraded AT&T from an "outperform" rating to a "market perform" rating in a research report on Wednesday, June 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $30.55.

AT&T Stock Down 1.0%

The firm has a market capitalization of $142.37 billion, a PE ratio of 6.88, a P/E/G ratio of 0.89 and a beta of 0.21. The stock has a 50-day simple moving average of $24.21 and a 200-day simple moving average of $25.60. The company has a quick ratio of 0.87, a current ratio of 0.92 and a debt-to-equity ratio of 1.05.

AT&T (NYSE:T - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The technology company reported $0.57 EPS for the quarter, beating analysts' consensus estimates of $0.55 by $0.02. AT&T had a return on equity of 12.49% and a net margin of 16.94%.The firm had revenue of $31.51 billion for the quarter, compared to analysts' expectations of $31.29 billion. During the same quarter in the prior year, the firm earned $0.51 EPS. The business's revenue for the quarter was up 2.9% compared to the same quarter last year. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS. Analysts forecast that AT&T Inc. will post 2.31 EPS for the current year.

AT&T Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Friday, July 10th will be paid a $0.2775 dividend. This represents a $1.11 dividend on an annualized basis and a yield of 5.4%. The ex-dividend date is Friday, July 10th. AT&T's payout ratio is currently 37.25%.

Institutional Investors Weigh In On AT&T

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Brighton Jones LLC lifted its holdings in shares of AT&T by 26.5% in the fourth quarter. Brighton Jones LLC now owns 48,579 shares of the technology company's stock worth $1,106,000 after buying an additional 10,188 shares in the last quarter. Osterweis Capital Management Inc. increased its holdings in AT&T by 4,352.9% during the 2nd quarter. Osterweis Capital Management Inc. now owns 6,234 shares of the technology company's stock worth $180,000 after acquiring an additional 6,094 shares during the period. Main Street Financial Solutions LLC lifted its stake in AT&T by 4.0% in the 2nd quarter. Main Street Financial Solutions LLC now owns 26,796 shares of the technology company's stock worth $775,000 after purchasing an additional 1,022 shares in the last quarter. HUB Investment Partners LLC lifted its stake in AT&T by 19.6% in the 2nd quarter. HUB Investment Partners LLC now owns 55,730 shares of the technology company's stock worth $1,613,000 after purchasing an additional 9,115 shares in the last quarter. Finally, Peapack Gladstone Financial Corp boosted its holdings in AT&T by 1.8% in the 2nd quarter. Peapack Gladstone Financial Corp now owns 207,063 shares of the technology company's stock valued at $5,992,000 after purchasing an additional 3,677 shares during the period. Institutional investors own 57.10% of the company's stock.

About AT&T

AT&T Inc is a global telecommunications company that provides a broad range of communications and digital entertainment services. Its core activities include consumer and business wireless services, broadband and fiber internet, and network infrastructure. The company operates branded wireless services through AT&T Mobility and deploys fixed-line and fiber networks to deliver high-speed internet and related home services.

AT&T's product and service portfolio spans mobile voice and data plans, smartphones and device sales, home internet (including fiber-to-the-home where available), and managed connectivity solutions for enterprise customers.

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