AT&T Inc. $T Stake Lessened by Legal & General Group Plc

Key Points

• Legal & General Group Plc reduced its AT&T stake by 1.3% in the fourth quarter, but still held nearly 47.9 million shares valued at about $1.19 billion.
• AT&T’s recent business updates were mixed but mostly positive, including a 5G partnership with Lexus, the launch of a customizable lower-priced wireless plan called “Build-A-Plan,” and a $19 billion California fiber and wireless investment commitment through 2030.
• The company recently beat quarterly earnings and revenue estimates and continues to pay a sizable dividend, with a 4.4% yield; however, analysts remain only moderately bullish and some price targets have been trimmed.

Legal & General Group Plc lessened its stake in AT&T Inc. (NYSE:T - Free Report) by 1.3% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 47,940,052 shares of the technology company's stock after selling 619,514 shares during the period. Legal & General Group Plc owned about 0.68% of AT&T worth $1,190,831,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also made changes to their positions in the company. GGM Financials LLC bought a new stake in shares of AT&T in the third quarter worth $25,000. Rachor Investment Advisory Services LLC bought a new stake in shares of AT&T in the fourth quarter worth $25,000. Cresta Advisors Ltd. bought a new stake in shares of AT&T in the fourth quarter worth $26,000. OFI Invest Asset Management increased its stake in shares of AT&T by 84.2% in the fourth quarter. OFI Invest Asset Management now owns 1,087,055 shares of the technology company's stock worth $27,000 after buying an additional 496,804 shares during the last quarter. Finally, Eagle Bay Advisors LLC bought a new stake in shares of AT&T in the fourth quarter worth $29,000. Institutional investors own 57.10% of the company's stock.

Key Headlines Impacting AT&T

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

• Positive Sentiment: AT&T announced a new partnership with Lexus to bring its 5G connectivity into upcoming vehicles, a win that highlights demand for its wireless network and creates another potential growth avenue. AT&T Partners With Lexus, Here’s What You Should Know
• Positive Sentiment: The company also unveiled “Build-A-Plan,” a lower-priced, customizable wireless offering that could help AT&T attract budget-conscious customers and improve retention in a competitive market. AT&T Launches Build-A-Plan
• Positive Sentiment: AT&T is also being praised by some investors for its steady execution and value profile, with commentary pointing to solid operational discipline and compelling valuation. AT&T Gains From Steady Stagey Execution
• Positive Sentiment: Longer-term, AT&T outlined a $19 billion California fiber and wireless investment plan through 2030, reinforcing its infrastructure spending and modernization strategy. AT&T Makes $19 Billion Commitment to Bring High-Speed Connectivity to California
• Neutral Sentiment: AT&T, Verizon, and T-Mobile reportedly agreed in principle to form a joint venture to reduce mobile dead zones, which could support industry infrastructure investment but does not yet have a clear financial impact. Verizon, AT&T, and T-Mobile Form a Joint Venture to End Mobile Dead Zones Across the US
• Negative Sentiment: AT&T sued California to block requirements tied to its old copper-phone network, highlighting ongoing regulatory friction and the challenge of retiring legacy services. AT&T sues California in bid to stop offering traditional phone service
• Negative Sentiment: AT&T also faced criticism over a new prepaid admin fee and other pricing-related moves, which could weigh on sentiment if customers react negatively. AT&T is the first carrier to charge an admin fee for its prepaid plans
• Negative Sentiment: Analyst coverage after earnings notes AT&T is still down from its last report, suggesting investors remain cautious despite a recent beat on EPS and revenue. AT&T Down 4.8% Since Last Earnings Report: Can It Rebound?

AT&T Stock Performance

AT&T stock opened at $25.29 on Monday. The company has a market cap of $175.74 billion, a PE ratio of 8.49, a P/E/G ratio of 0.92 and a beta of 0.23. The company has a fifty day moving average price of $26.65 and a two-hundred day moving average price of $26.01. The company has a debt-to-equity ratio of 1.05, a current ratio of 0.92 and a quick ratio of 0.87. AT&T Inc. has a 12 month low of $22.95 and a 12 month high of $29.79.

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

AT&T Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, May 1st. Stockholders of record on Friday, April 10th were issued 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 dividend yield of 4.4%. AT&T's payout ratio is 37.25%.

Analyst Ratings Changes

A number of brokerages recently issued reports on T. Wells Fargo & Company dropped their price target on shares of AT&T from $29.00 to $27.00 and set an "overweight" rating for the company in a research note on Monday, January 26th. BNP Paribas Exane decreased their price objective on shares of AT&T from $28.00 to $26.00 and set a "neutral" rating for the company in a report on Thursday, April 23rd. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $33.00 price objective on shares of AT&T in a report on Thursday, January 29th. KeyCorp lifted their price objective on shares of AT&T from $30.00 to $36.00 and gave the stock an "overweight" rating in a report on Wednesday, March 25th. Finally, TD Cowen reaffirmed a "hold" rating on shares of AT&T in a report on Thursday, January 29th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $30.55.

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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