AT&T Target of Unusually High Options Trading (NYSE:T)

Key Points

• AT&T saw unusually heavy options activity on Thursday, with traders buying 75,104 call options, about 25% above its normal daily volume.
• The stock traded lower to $22.52, near its 52-week low of $22.33, despite elevated volume and a relatively low valuation profile.
• Recent earnings and dividend results were solid: AT&T beat quarterly EPS and revenue estimates, maintained a 4.9% dividend yield, and analysts currently hold a consensus Moderate Buy rating with an average target price of $30.55.

AT&T Inc. (NYSE:T - Get Free Report) was the recipient of unusually large options trading activity on Thursday. Stock traders acquired 75,104 call options on the stock. This represents an increase of approximately 25% compared to the typical daily volume of 60,278 call options.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Tsfg LLC increased its stake in shares of AT&T by 3.6% during the fourth quarter. Tsfg LLC now owns 10,656 shares of the technology company's stock valued at $265,000 after buying an additional 366 shares during the period. Lifestyle Asset Management Inc. increased its stake in shares of AT&T by 3.6% during the fourth quarter. Lifestyle Asset Management Inc. now owns 10,511 shares of the technology company's stock valued at $261,000 after buying an additional 368 shares during the period. Hillsdale Investment Management Inc. increased its stake in shares of 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 buying an additional 370 shares during the period. Bruce G. Allen Investments LLC increased its stake in shares of AT&T by 1.7% during the fourth quarter. Bruce G. Allen Investments LLC now owns 22,398 shares of the technology company's stock valued at $556,000 after buying an additional 374 shares during the period. Finally, Rockline Wealth Management LLC increased its stake in shares of AT&T by 3.8% during the fourth quarter. Rockline Wealth Management LLC now owns 10,445 shares of the technology company's stock valued at $259,000 after buying an additional 378 shares during the period. 57.10% of the stock is currently owned by institutional investors.

AT&T Price Performance

T stock traded down $1.03 during mid-day trading on Thursday, reaching $22.52. 50,090,297 shares of the company traded hands, compared to its average volume of 42,409,922. The company has a debt-to-equity ratio of 1.05, a current ratio of 0.92 and a quick ratio of 0.87. The company has a market capitalization of $156.45 billion, a P/E ratio of 7.55, a P/E/G ratio of 0.90 and a beta of 0.21. AT&T has a 52-week low of $22.33 and a 52-week high of $29.79. The company has a fifty day moving average price of $26.14 and a 200-day moving average price of $25.99.

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

AT&T Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, May 1st. Investors of record on Friday, April 10th were paid a dividend of $0.2775 per share. The ex-dividend date of this dividend was Friday, April 10th. This represents a $1.11 annualized dividend and a yield of 4.9%. AT&T's dividend payout ratio (DPR) is currently 37.25%.

Analysts Set New Price Targets

T has been the subject of several recent analyst reports. KeyCorp upped their target price on shares of AT&T from $30.00 to $36.00 and gave the stock an "overweight" rating in a research note on Wednesday, March 25th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $31.00 target price on shares of AT&T in a research note on Wednesday, May 20th. Wall Street Zen downgraded AT&T from a "hold" rating to a "sell" rating in a research note on Saturday, May 30th. Morgan Stanley started coverage on AT&T in a research note on Thursday, April 16th. They issued an "overweight" rating and a $30.00 target price on the stock. Finally, Citigroup boosted their target price on AT&T from $29.00 to $31.50 and gave the stock a "buy" rating in a research note on Monday, March 23rd. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and eight have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $30.55.

Key AT&T News

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

• Negative Sentiment: Oppenheimer downgraded AT&T amid worries that SpaceX’s satellite broadband push could intensify competition for AT&T’s wireless and home internet business, pressuring sentiment on the stock. Why the SpaceX IPO Is Sending AT&T Stock Down Today
• Negative Sentiment: Investor attention is also shifting back to AT&T’s fiber spending and free-cash-flow durability, with recent commentary suggesting near-term cash flow and dividend coverage may remain a concern. AT&T slides as investors refocus on fiber spend, cash-flow durability, and recent analyst caution
• Negative Sentiment: The U.S. Supreme Court upheld the FCC’s fine process in a customer location-data case, reinforcing the agency’s authority after AT&T was hit with a $57 million penalty tied to those practices. Supreme Court Upholds FCC Fine Process in AT&T and Verizon Customer Data Case
• Neutral Sentiment: AT&T also rolled out simplified fiber home-internet plans and launched a new Disney/Pixar “Toy Story 5” marketing campaign, which may support customer acquisition but are not immediate stock catalysts. AT&T Launches Simple Fiber Plans: Built for More, Sold for Less

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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