AT&T (NYSE:T) Shares Up 4.8% - Should You Buy?

Key Points

• AT&T shares rose 4.8% after the company reported stronger-than-expected Q2 earnings, driven by solid wireless subscriber growth and improved cash flow. The stock also saw unusually heavy trading volume, suggesting strong investor interest after the results.
• Analyst sentiment remains constructive, with several firms reaffirming or adjusting ratings and price targets following the earnings release. MarketBeat says the consensus view is currently a Moderate Buy, with a target price of $29.19.
• AT&T continues to reward shareholders with a quarterly dividend of $0.2775 per share, implying a 4.6% annual yield. The company also raised its FY2026 guidance to $2.25-$2.35 in EPS, reinforcing confidence in its earnings outlook.

AT&T Inc. (NYSE:T - Get Free Report)'s share price was up 4.8% during trading on Friday . The stock traded as high as $24.13 and last traded at $24.0550. 80,579,671 shares changed hands during mid-day trading, an increase of 57% from the average daily volume of 51,172,395 shares. The stock had previously closed at $22.96.

Key Stories Impacting AT&T

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

• Positive Sentiment: AT&T beat Q2 earnings expectations, helped by strong wireless subscriber growth and improved cash flow, which has reinforced the stock’s post-earnings rally.
• Positive Sentiment: Wolfe Research upgraded AT&T NYSE: T after the results, and other analyst coverage continues to highlight fiber-led growth and solid execution.
• Positive Sentiment: Unusually heavy call option activity suggests traders are betting on further upside in the near term.
• Neutral Sentiment: AT&T is also using public-events marketing, such as MLS All-Star Week promotions, to support brand visibility and network positioning. AT&T's Summer of Soccer Takes Over Charlotte for MLS All-Star Week
• Negative Sentiment: Reports of an internet outage for some customers could weigh on sentiment by raising questions about service reliability. ATT internet outage for some. AT and T outage Thursday

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the stock. Sanford C. Bernstein reissued an "outperform" rating and issued a $25.00 target price on shares of AT&T in a research report on Monday, July 13th. Wall Street Zen raised shares of AT&T from a "sell" rating to a "hold" rating in a research note on Saturday, June 20th. Barclays decreased their price target on shares of AT&T from $26.00 to $24.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 8th. Argus reduced their target price on AT&T from $33.00 to $30.00 and set a "buy" rating on the stock in a report on Thursday. Finally, TD Cowen boosted their price target on AT&T from $32.00 to $33.00 and gave the company a "hold" rating in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $29.19.

AT&T Stock Up 4.8%

The firm has a fifty day simple moving average of $22.79 and a 200-day simple moving average of $25.24. The company has a market capitalization of $167.14 billion, a PE ratio of 7.97, a P/E/G ratio of 0.91 and a beta of 0.24. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.87 and a current ratio of 0.97.

AT&T (NYSE:T - Get Free Report) last released its earnings results on Wednesday, July 22nd. The technology company reported $0.65 earnings per share for the quarter, beating the consensus estimate of $0.59 by $0.06. AT&T had a net margin of 16.94% and a return on equity of 12.86%. The firm had revenue of $31.56 billion during the quarter, compared to analyst estimates of $31.80 billion. During the same quarter in the previous year, the firm earned $0.54 earnings per share. The firm's revenue for the quarter was up 2.3% compared to the same quarter last year. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS. Equities research analysts anticipate that AT&T Inc. will post 2.31 EPS for the current fiscal year.

AT&T Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Friday, July 10th will be issued a $0.2775 dividend. This represents a $1.11 annualized dividend and a dividend yield of 4.6%. The ex-dividend date is Friday, July 10th. AT&T's dividend payout ratio (DPR) is presently 37.25%.

Institutional Investors Weigh In On AT&T

A number of institutional investors have recently modified their holdings of T. Tsfg LLC raised its stake in shares of AT&T by 3.6% during the 4th quarter. Tsfg LLC now owns 10,656 shares of the technology company's stock worth $265,000 after purchasing an additional 366 shares in the last quarter. Lifestyle Asset Management Inc. increased its holdings in AT&T by 3.6% in the fourth quarter. Lifestyle Asset Management Inc. now owns 10,511 shares of the technology company's stock worth $261,000 after buying an additional 368 shares during the last quarter. Hillsdale Investment Management Inc. raised its position in AT&T by 1.2% during the fourth quarter. Hillsdale Investment Management Inc. now owns 31,970 shares of the technology company's stock valued at $794,000 after acquiring an additional 370 shares in the last quarter. Bruce G. Allen Investments LLC lifted its stake in AT&T by 1.7% in the fourth quarter. Bruce G. Allen Investments LLC now owns 22,398 shares of the technology company's stock valued at $556,000 after acquiring an additional 374 shares during the last quarter. Finally, Rockline Wealth Management LLC lifted its stake in AT&T by 3.8% in the fourth quarter. Rockline Wealth Management LLC now owns 10,445 shares of the technology company's stock valued at $259,000 after acquiring an additional 378 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 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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