AT&T (NYSE:T) Stock Price Up 2.7% - Time to Buy?

Key Points

• AT&T shares rose 2.7% to about $23.68, while analysts maintain a “Moderate Buy” consensus and an average price target of $29.19, despite several recent target-price reductions.
• The company’s wireless outlook received support from its Ericsson network agreement and expanded spectrum deployment, while its D-Wave quantum-computing collaboration could improve network efficiency and create future enterprise opportunities.
• AT&T reported quarterly EPS of $0.65, exceeding estimates, and continues to offer a 4.7% dividend yield. However, planned infrastructure spending of more than $250 billion over five years and potential competition from SpaceX’s terrestrial mobile network could pressure cash flow and customer retention.

AT&T Inc. (NYSE:T - Get Free Report) rose 2.7% during trading on Thursday . The company traded as high as $23.71 and last traded at $23.6760. 44,386,010 shares were traded during trading, a decline of 14% from the average session volume of 51,680,473 shares. The stock had previously closed at $23.06.

More AT&T News

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

• Positive Sentiment: Ericsson network agreement strengthens AT&T’s wireless position. AT&T selected Ericsson’s 600 MHz dual-band radios to deploy spectrum acquired from EchoStar. The additional spectrum and upgraded equipment should improve capacity, coverage, reliability and performance nationwide, potentially supporting customer retention and long-term wireless growth. AT&T and Ericsson Enhance Wireless Capacity, Coverage, and Performance Nationwide
• Positive Sentiment: Quantum-computing collaboration offers a potential enterprise-services opportunity. AT&T’s expanded work with D-Wave produced a reported 240-fold improvement in a network-optimization task. While still an emerging technology, successful commercial applications could help AT&T improve network efficiency and create new AI- and quantum-enabled services. Will AT&T’s Expanded Quantum Deal Turn D-Wave Into a Scalable Enterprise Player?
• Neutral Sentiment: AT&T is committing heavily to infrastructure. The company plans to invest more than $250 billion in U.S. network infrastructure over the next five years, following $145 billion of spending from 2019 through 2023. The program supports 5G, fiber and AI-powered services, but the scale of capital spending could pressure free cash flow if returns take time to materialize.
• Neutral Sentiment: New amiGO Jr. Tab 2 expands AT&T’s device ecosystem. The $4.99-per-month children’s tablet, offered through AT&T’s 5G network, could support customer engagement and bundled-service sales, though its direct financial impact is likely modest. AT&T’s Exclusive Kids Device Line Gets an Upgrade
• Negative Sentiment: SpaceX’s planned terrestrial mobile network raises competitive concerns. Starlink Mobile already provides coverage in dead zones and during outages, and SpaceX intends to add ground infrastructure for a fuller wireless offering. The prospect of direct competition for AT&T customers contributed to weakness across telecom stocks and could increase pressure on pricing, retention and network investment.

Analysts Set New Price Targets

A number of brokerages recently issued reports on T. Argus decreased their target price on shares of AT&T from $33.00 to $30.00 and set a "buy" rating on the stock in a research report on Thursday, July 23rd. Royal Bank Of Canada reduced their price target on AT&T from $31.00 to $27.00 and set an "outperform" rating on the stock in a research note on Monday, July 20th. BNP Paribas Exane lowered their price objective on AT&T from $28.00 to $26.00 and set a "neutral" rating for the company in a research report on Thursday, April 23rd. Weiss Ratings upgraded AT&T from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday. Finally, Wall Street Zen upgraded AT&T from a "sell" rating to a "hold" rating in a research report on Saturday, June 20th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $29.19.

AT&T Stock Performance

The company has a market cap of $162.24 billion, a PE ratio of 7.84, a P/E/G ratio of 0.95 and a beta of 0.23. The stock's 50 day simple moving average is $22.58 and its two-hundred day simple moving average is $25.23. The company has a quick ratio of 0.93, a current ratio of 0.97 and a debt-to-equity ratio of 1.06.

AT&T (NYSE:T - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The technology company reported $0.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.59 by $0.06. The company had revenue of $31.56 billion during 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% compared to the same quarter last year. During the same period in the previous year, the company earned $0.54 EPS. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS. As a group, research analysts anticipate that AT&T Inc. will post 2.34 earnings per share for the current year.

AT&T Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, August 3rd. Stockholders of record on Friday, July 10th were issued a $0.2775 dividend. This represents a $1.11 dividend on an annualized basis and a dividend yield of 4.7%. The ex-dividend date was Friday, July 10th. AT&T's dividend payout ratio (DPR) is 36.75%.

Institutional Trading of AT&T

Institutional investors and hedge funds have recently bought and sold shares of the business. Rachor Investment Advisory Services LLC acquired a new stake in AT&T in the 4th quarter valued at $25,000. Safe Harbor Fiduciary LLC acquired a new stake in AT&T in the fourth quarter valued at $25,000. Cresta Advisors Ltd. acquired a new stake in shares of AT&T in the 4th quarter valued at about $26,000. Blueline Advisors LLC bought a new stake in AT&T in the fourth quarter valued at about $26,000. Finally, Winnow Wealth LLC raised its stake in AT&T by 362.8% during the fourth quarter. Winnow Wealth LLC now owns 1,046 shares of the technology company's stock valued at $26,000 after buying an additional 820 shares in 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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