AT&T (NYSE:T) Stock Price Up 1.7% - Still a Buy?

Key Points

• AT&T beat quarterly expectations with $0.57 EPS versus a $0.55 consensus and $31.51B revenue, set FY2026 guidance of $2.25–$2.35 EPS (analysts project ~$2.31).
• Analyst sentiment is broadly positive with a MarketBeat consensus rating of Moderate Buy and a consensus price target of $30.55, while individual targets range from $26 to $33.
• Management is pushing into higher‑margin services—launching Dynamic Defense cybersecurity and RapidSOS AI support—while maintaining a quarterly dividend of $0.2775 (≈4.2% yield); however, some coverage warns shares still “lag targets,” which could limit near‑term upside.

AT&T Inc. (NYSE:T - Get Free Report)'s share price rose 1.7% on Thursday . The stock traded as high as $26.47 and last traded at $26.1750. Approximately 44,479,439 shares traded hands during mid-day trading, an increase of 2% from the average daily volume of 43,749,156 shares. The stock had previously closed at $25.75.

AT&T News Summary

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

• Positive Sentiment: Product/service expansion — AT&T launched Dynamic Defense cybersecurity for SMBs on AT&T Business Fiber and added RapidSOS HARMONY AI support on AT&T ESInet, positioning the company to sell higher‑margin, network-based security and public‑safety services beyond connectivity. This helps the growth outlook and cross‑sell potential to business customers. Article Link
• Positive Sentiment: Analyst upgrades — Erste Group nudged up its EPS forecasts (FY2026 to ~$2.31 and FY2027 to ~$2.56), showing modest analyst confidence in AT&T’s near‑term earnings power. Upward estimate revisions tend to support the stock and reduce haircut risk on valuation. Analyst Note
• Neutral Sentiment: Brand/SMB marketing push — AT&T opened submissions for its 2026 Small Business Contest (one $50k prize) to deepen small‑business relationships; useful for marketing and customer acquisition but unlikely to move near‑term revenue materially. Article Link
• Neutral Sentiment: Income stock narratives persist — Recent pieces comparing AT&T’s dividend yield to Verizon and historical dividend performance keep income investors focused on yield vs. growth tradeoffs; these stories can attract buyers but also reinforce valuation sensitivity. Fool Article Barchart Article
• Neutral Sentiment: Prepaid/network coverage pieces — Coverage of AT&T’s prepaid plans and mobile services is informational and may support subscriber sentiment but is unlikely to drive a material re‑rating on its own. Article Link
• Negative Sentiment: Valuation/performance caution — Coverage notes that AT&T shares “lag targets” despite new offerings, reflecting lingering investor concern about growth trajectory and how quickly new services will translate into meaningful EBITDA or margin expansion; that skepticism can cap upside until revenues and margins visibly improve. Article Link

Analysts Set New Price Targets

T has been the subject of several research analyst reports. Morgan Stanley initiated coverage on AT&T in a report on Thursday, April 16th. They issued an "overweight" rating and a $30.00 price objective for the company. BNP Paribas Exane decreased their target price on AT&T from $28.00 to $26.00 and set a "neutral" rating for the company in a research note on Thursday, April 23rd. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $33.00 target price on shares of AT&T in a research note on Thursday, January 29th. UBS Group restated a "buy" rating on shares of AT&T in a research note on Thursday, January 29th. Finally, Sanford C. Bernstein decreased their target price on AT&T from $31.00 to $30.00 and set an "outperform" rating for the company in a research note on Friday, January 16th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $30.55.

AT&T Stock Performance

The company has a quick ratio of 0.87, a current ratio of 0.92 and a debt-to-equity ratio of 1.05. The stock has a 50 day simple moving average of $27.55 and a 200 day simple moving average of $26.04. The company has a market capitalization of $181.87 billion, a price-to-earnings ratio of 8.78, a P/E/G ratio of 0.95 and a beta of 0.34.

AT&T (NYSE:T - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The technology company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.55 by $0.02. The business had revenue of $31.51 billion during the quarter, compared to the consensus estimate of $31.29 billion. AT&T had a return on equity of 12.49% and a net margin of 16.94%.The business's revenue was up 2.9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.51 earnings per share. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS. As a group, analysts anticipate that AT&T Inc. will post 2.31 earnings per share for the current fiscal year.

AT&T Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 1st. Stockholders of record on Friday, April 10th will be given a dividend of $0.2775 per share. The ex-dividend date is Friday, April 10th. This represents a $1.11 annualized dividend and a dividend yield of 4.2%. AT&T's payout ratio is currently 37.25%.

Hedge Funds Weigh In On AT&T

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Robinson Smith Wealth Advisors LLC bought a new stake in AT&T during the first quarter worth approximately $232,000. Millstone Evans Group LLC raised its holdings in AT&T by 2.3% during the first quarter. Millstone Evans Group LLC now owns 23,694 shares of the technology company's stock worth $687,000 after purchasing an additional 522 shares in the last quarter. Beacon Financial Group raised its holdings in AT&T by 4.5% during the first quarter. Beacon Financial Group now owns 16,573 shares of the technology company's stock worth $480,000 after purchasing an additional 711 shares in the last quarter. Main Street Research LLC raised its holdings in AT&T by 45.1% during the first quarter. Main Street Research LLC now owns 20,193 shares of the technology company's stock worth $585,000 after purchasing an additional 6,279 shares in the last quarter. Finally, First Horizon Corp raised its holdings in AT&T by 28.4% during the first quarter. First Horizon Corp now owns 368,309 shares of the technology company's stock worth $10,677,000 after purchasing an additional 81,397 shares in the last quarter. 57.10% of the stock is currently owned by institutional investors and hedge funds.

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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