AT&T (NYSE:T) Stock Price Down 3.1% - Should You Sell?

Key Points

• AT&T shares fell 3.1% to about $23.19 amid concerns over the near-term capital demands and uncertain returns from its $23 billion acquisition of EchoStar spectrum licenses.
• The deal adds approximately 50 MHz of nationwide spectrum that could strengthen AT&T’s 5G network, while Internet Air reached 2 million subscribers and the company reported quarterly EPS of $0.65, above the $0.59 consensus estimate.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and $29.19 average price target; AT&T also offers an annualized $1.11 dividend, yielding approximately 4.8%.

AT&T Inc. (NYSE:T - Get Free Report)'s stock price fell 3.1% during mid-day trading on Thursday . The company traded as low as $23.14 and last traded at $23.1870. Approximately 49,331,735 shares were traded during trading, a decline of 4% from the average session volume of 51,620,020 shares. The stock had previously closed at $23.94.

AT&T News Summary

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

• Positive Sentiment: AT&T completed its approximately $23 billion acquisition of EchoStar spectrum licenses, adding about 50 MHz of nationwide low- and mid-band spectrum. The added capacity could improve 5G speed, coverage and network competitiveness across virtually every U.S. market. AT&T reaffirmed its previously issued financial outlook and capital-allocation plan. AT&T closes $23 billion deal to acquire spectrum from EchoStar
• Positive Sentiment: AT&T’s Internet Air 5G home broadband service reached 2 million subscribers, adding its second million in roughly half the time required to reach the first. More than half of customers also use AT&T wireless, highlighting cross-selling potential and supporting the company’s converged-services strategy. AT&T Internet Air Doubles Subscribers in Almost Half the Time
• Positive Sentiment: AT&T expanded its use of D-Wave’s quantum-computing technology for network optimization. The technology reportedly reduced a network task from about 60 minutes to 15 seconds, potentially offering long-term efficiency benefits, although the financial impact is not yet quantified. D-Wave’s AT&T Deal Shows Quantum Computing Is Moving Beyond Theory
• Neutral Sentiment: AT&T is raising prices for additional legacy wireless-plan customers beginning in August. The move could lift average revenue per user and encourage migration to newer plans, but investor reaction may depend on customer retention and churn. AT&T Is Raising Prices for More Legacy Customers
• Negative Sentiment: The $23 billion spectrum purchase increases near-term capital demands and raises questions about returns on the investment, contributing to pressure on the shares despite the potential network benefits. Erste Group Bank made only a modest reduction to its FY2027 EPS forecast, to $2.55 from $2.56, signaling limited immediate earnings momentum. AT&T Closes Acquisition of Spectrum Licenses from EchoStar

Analyst Ratings Changes

A number of research firms have commented on T. TD Cowen upped their target price on shares of AT&T from $32.00 to $33.00 and gave the company a "hold" rating in a research report on Thursday, July 23rd. Argus reduced their price target on shares of AT&T from $33.00 to $30.00 and set a "buy" rating on the stock in a research note on Thursday, July 23rd. Oppenheimer lowered shares of AT&T from an "outperform" rating to a "market perform" rating in a report on Wednesday, June 3rd. Wolfe Research raised shares of AT&T from a "peer perform" rating to an "outperform" rating and set a $29.00 price objective for the company in a research report on Thursday, July 23rd. Finally, Weiss Ratings downgraded shares of AT&T from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, July 20th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, AT&T currently has an average rating of "Moderate Buy" and a consensus target price of $29.19.

AT&T Stock Performance

The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.93 and a current ratio of 0.97. The company has a market capitalization of $158.89 billion, a price-to-earnings ratio of 7.68, a P/E/G ratio of 1.00 and a beta of 0.24. The firm has a 50-day simple moving average of $22.77 and a two-hundred day simple moving average of $25.24.

AT&T (NYSE:T - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The technology company reported $0.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.59 by $0.06. The business had revenue of $31.56 billion for the quarter, compared to analysts' expectations of $31.80 billion. AT&T had a net margin of 16.94% and a return on equity of 12.86%. The business's quarterly revenue was up 2.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.54 earnings per share. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS. On average, sell-side analysts anticipate that AT&T Inc. will post 2.34 EPS for the current fiscal year.

AT&T Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Friday, July 10th will be given a dividend of $0.2775 per share. The ex-dividend date of this dividend is Friday, July 10th. This represents a $1.11 dividend on an annualized basis and a dividend yield of 4.8%. AT&T's dividend payout ratio is currently 36.75%.

Institutional Inflows and Outflows

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

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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