AT&T (NYSE:T) Shares Gap Down - Here's Why

Key Points

• AT&T shares gapped down from $29.59 to $28.50 before opening, currently trading at $29.00 with significant trading volume of over 13 million shares.
• Analysts have varying opinions on AT&T, with JPMorgan raising its target price to $33.00 while HSBC downgraded it to a "hold" rating with a $30.00 target; the consensus rating remains a "Moderate Buy" with an average target of $30.60.
• The company recently announced a quarterly dividend of $0.2775 per share, representing a 3.8% yield, and has a current dividend payout ratio of 63.07%.

Shares of AT&T Inc. (NYSE:T - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $29.59, but opened at $28.50. AT&T shares last traded at $29.00, with a volume of 13,630,508 shares trading hands.

Analysts Set New Price Targets

A number of research analysts recently weighed in on T shares. JPMorgan Chase & Co. raised their target price on shares of AT&T from $31.00 to $33.00 and gave the company an "overweight" rating in a report on Thursday, July 24th. HSBC cut AT&T from a "buy" rating to a "hold" rating and set a $30.00 price target for the company. in a report on Thursday, July 24th. Scotiabank upped their target price on AT&T from $29.50 to $30.00 and gave the company a "sector outperform" rating in a report on Friday, July 11th. The Goldman Sachs Group began coverage on shares of AT&T in a research report on Tuesday, September 2nd. They set a "buy" rating and a $32.00 target price on the stock. Finally, Citigroup reaffirmed a "buy" rating on shares of AT&T in a report on Tuesday, August 26th. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $30.60.

AT&T Trading Down 2.0%

The stock has a market cap of $207.25 billion, a price-to-earnings ratio of 16.49, a P/E/G ratio of 3.66 and a beta of 0.44. The company's fifty day moving average price is $28.23 and its 200-day moving average price is $27.65. The company has a debt-to-equity ratio of 1.01, a current ratio of 0.81 and a quick ratio of 0.76.

AT&T (NYSE:T - Get Free Report) last released its earnings results on Wednesday, July 23rd. The technology company reported $0.54 earnings per share for the quarter, beating the consensus estimate of $0.53 by $0.01. The company had revenue of $30.85 billion during the quarter, compared to the consensus estimate of $30.44 billion. AT&T had a return on equity of 13.36% and a net margin of 10.29%.AT&T's revenue was up 3.4% compared to the same quarter last year. During the same period in the previous year, the company posted $0.51 EPS. On average, research analysts expect that AT&T Inc. will post 2.14 EPS for the current fiscal year.

AT&T Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 1st. Investors of record on Thursday, July 10th were paid a dividend of $0.2775 per share. This represents a $1.11 annualized dividend and a yield of 3.8%. The ex-dividend date of this dividend was Thursday, July 10th. AT&T's dividend payout ratio (DPR) is presently 63.07%.

Institutional Investors Weigh In On AT&T

A number of institutional investors and hedge funds have recently made changes to their positions in 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. Yoffe Investment Management LLC purchased a new position in AT&T in the fourth quarter valued at approximately $213,000. Fiduciary Trust Co increased its position in shares of AT&T by 1.0% in the fourth quarter. Fiduciary Trust Co now owns 92,269 shares of the technology company's stock valued at $2,101,000 after buying an additional 889 shares in the last quarter. Focus Partners Wealth lifted its stake in shares of AT&T by 59.2% in the 4th quarter. Focus Partners Wealth now owns 1,235,890 shares of the technology company's stock valued at $29,120,000 after purchasing an additional 459,410 shares in the last quarter. Finally, Graham Capital Management L.P. increased its holdings in shares of AT&T by 323.5% in the 4th quarter. Graham Capital Management L.P. now owns 94,511 shares of the technology company's stock valued at $2,152,000 after acquiring an additional 72,193 shares during the last quarter. Institutional investors and hedge funds own 57.10% of the company's stock.

AT&T Company Profile

AT&T, Inc is a holding company, which engages in the provision of telecommunications and technology services. It operates through the Communications and Latin America segments. The Communications segment offers wireless, wireline telecom, and broadband services to businesses and consumers located in the US and businesses globally.

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