AT&T (NYSE:T) Trading Down 5.2% - Time to Sell?

Key Points

• AT&T shares fell 5.2% in midday trading, with unusually heavy volume of about 126.7 million shares as the stock slipped to around $20.70 from a prior close of $21.82.
• Recent sentiment has been mixed to negative: analysts expect only single-digit earnings growth, the stock hit a new 52-week low, and broader telecom worries are pressuring the sector.
• Despite the selloff, AT&T continues to show some underlying support through subscriber-growth initiatives, a quarterly dividend of $0.2775 per share, and analyst consensus that still sits at Moderate Buy with a $30.55 price target.

AT&T Inc. (NYSE:T - Get Free Report) was down 5.2% during mid-day trading on Tuesday . The stock traded as low as $20.57 and last traded at $20.6950. Approximately 126,693,387 shares were traded during mid-day trading, an increase of 178% from the average session volume of 45,525,582 shares. The stock had previously closed at $21.82.

Key Headlines Impacting AT&T

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

• Positive Sentiment: AT&T expanded its “Build-A-Plan” offering, making it easier for customers to customize wireless service and add home internet, which could support subscriber growth and boost cross-selling. AT&T Expands Build-A-Plan: Flexible Custom Wireless Plan Now Includes the Ability to Easily Add America’s Best and Fastest Home Internet
• Neutral Sentiment: Analysts are expecting AT&T’s upcoming second-quarter results to show only single-digit earnings growth, suggesting steady but not accelerating near-term fundamentals. AT&T Earnings Preview: What to Expect
• Negative Sentiment: AT&T’s stock has been hit by broader telecom selling, with investors worrying that satellite-based competitors could reshape the wireless market and pressure pricing. SpaceX Might Bring Mobile Phone to Market, and Verizon, AT&T, and T-Mobile Are Down
• Negative Sentiment: Sentiment also remains weak because AT&T recently hit a new 52-week low, reinforcing concerns that the stock is under technical and momentum pressure. AT&T NYSE: T Reaches New 52-Week Low - Time to Sell?

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the stock. Oppenheimer downgraded shares of AT&T from an "outperform" rating to a "market perform" rating in a research note on Wednesday, June 3rd. Morgan Stanley initiated coverage on shares of AT&T in a research note on Thursday, April 16th. They issued an "overweight" rating and a $30.00 target price for the company. Arete Research upgraded AT&T from a "sell" rating to a "neutral" rating and set a $28.00 target price on the stock in a research report on Tuesday, March 10th. Citigroup upped their price target on AT&T from $29.00 to $31.50 and gave the stock a "buy" rating in a report on Monday, March 23rd. Finally, Wall Street Zen raised AT&T from a "sell" rating to a "hold" rating in a report on Saturday, June 20th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and eight have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $30.55.

AT&T Price Performance

The company has a 50-day moving average of $24.33 and a 200 day moving average of $25.63. The stock has a market capitalization of $143.80 billion, a PE ratio of 6.94, a PEG ratio of 0.92 and a beta of 0.21. The company has a quick ratio of 0.87, a current ratio of 0.92 and a debt-to-equity ratio of 1.05.

AT&T (NYSE:T - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The technology company reported $0.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.55 by $0.02. AT&T had a return on equity of 12.49% and a net margin of 16.94%.The business had revenue of $31.51 billion during the quarter, compared to analyst estimates of $31.29 billion. During the same period in the prior year, the business earned $0.51 earnings per share. The business's revenue was up 2.9% compared to the same quarter last year. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS. Sell-side analysts predict that AT&T Inc. will post 2.31 EPS for the current 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 yield of 5.4%. The ex-dividend date is Friday, July 10th. AT&T's payout ratio is presently 37.25%.

Institutional Investors Weigh In On AT&T

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Rachor Investment Advisory Services LLC acquired a new stake in shares of AT&T during the fourth quarter valued at about $25,000. Safe Harbor Fiduciary LLC acquired a new position in shares of AT&T in the fourth quarter valued at approximately $25,000. Cresta Advisors Ltd. purchased a new stake in AT&T during the 4th quarter worth approximately $26,000. Blueline Advisors LLC purchased a new stake in AT&T during the 4th quarter worth approximately $26,000. Finally, Winnow Wealth LLC lifted its holdings in AT&T by 362.8% during the 4th quarter. Winnow Wealth LLC now owns 1,046 shares of the technology company's stock worth $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.

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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