Encore Global Management LP Invests $2.89 Million in AT&T Inc. $T

Key Points

• Encore Global Management initiated a $2.89 million AT&T position by purchasing 99,750 shares in the first quarter, making AT&T its 20th-largest holding and about 2% of its portfolio. Institutional investors collectively own 57.1% of AT&T.
• AT&T reported quarterly EPS of $0.65, beating the $0.59 consensus, while revenue rose 2.3% year over year to $31.56 billion. The company also maintains a $0.2775 quarterly dividend, equivalent to a 4.5% annualized yield.
• AT&T completed its approximately $23 billion EchoStar spectrum acquisition, strengthening its 5G capacity but increasing balance-sheet and financing concerns. Analysts remain moderately bullish, with an average price target of $29.19 versus the reported share price of $24.67.

Encore Global Management LP purchased a new stake in AT&T Inc. (NYSE:T - Free Report) in the first quarter, according to the company in its most recent filing with the SEC. The firm purchased 99,750 shares of the technology company's stock, valued at approximately $2,892,000. AT&T makes up about 2.0% of Encore Global Management LP's investment portfolio, making the stock its 20th biggest holding.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the stock. Brighton Jones LLC boosted its stake in shares of AT&T by 26.5% during the 4th quarter. Brighton Jones LLC now owns 48,579 shares of the technology company's stock worth $1,106,000 after acquiring an additional 10,188 shares in the last quarter. Osterweis Capital Management Inc. raised its holdings in AT&T by 4,352.9% during the second quarter. Osterweis Capital Management Inc. now owns 6,234 shares of the technology company's stock worth $180,000 after purchasing an additional 6,094 shares during the last quarter. Main Street Financial Solutions LLC raised its holdings in AT&T by 4.0% during the second quarter. Main Street Financial Solutions LLC now owns 26,796 shares of the technology company's stock worth $775,000 after purchasing an additional 1,022 shares during the last quarter. HUB Investment Partners LLC boosted its position in AT&T by 19.6% during the second quarter. HUB Investment Partners LLC now owns 55,730 shares of the technology company's stock worth $1,613,000 after purchasing an additional 9,115 shares in the last quarter. Finally, Peapack Gladstone Financial Corp boosted its position in AT&T by 1.8% during the second quarter. Peapack Gladstone Financial Corp now owns 207,063 shares of the technology company's stock worth $5,992,000 after purchasing an additional 3,677 shares in the last quarter. Institutional investors and hedge funds own 57.10% of the company's stock.

AT&T Price Performance

T stock opened at $24.67 on Wednesday. The stock's 50 day moving average price is $22.79 and its 200 day moving average price is $25.24. The firm has a market cap of $169.05 billion, a P/E ratio of 8.17, a PEG ratio of 0.99 and a beta of 0.24. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.93 and a current ratio of 0.97. AT&T Inc. has a 1 year low of $19.89 and a 1 year high of $29.79.

AT&T (NYSE:T - Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The technology company reported $0.65 earnings per share for the quarter, topping the consensus estimate of $0.59 by $0.06. AT&T had a return on equity of 12.86% and a net margin of 16.94%.The company had revenue of $31.56 billion during the quarter, compared to the consensus estimate of $31.80 billion. During the same quarter last year, the business posted $0.54 earnings per share. AT&T's revenue was up 2.3% compared to the same quarter last year. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS. On average, sell-side analysts expect that AT&T Inc. will post 2.34 earnings per share for the current fiscal year.

AT&T Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Friday, July 10th will be paid a dividend of $0.2775 per share. The ex-dividend date of this dividend is Friday, July 10th. This represents a $1.11 dividend on an annualized basis and a dividend yield of 4.5%. AT&T's dividend payout ratio (DPR) is presently 36.75%.

Key Headlines Impacting AT&T

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

• Positive Sentiment: Nationwide spectrum acquisition completed: AT&T closed its approximately $23 billion purchase of wireless licenses from EchoStar. The deal adds roughly 50 MHz of spectrum—including 30 MHz of nationwide 3.45 GHz mid-band spectrum and 20 MHz of 600 MHz low-band spectrum—covering virtually every U.S. market. The additional capacity should support faster, more reliable 5G service and improve AT&T’s competitive position. AT&T Closes Acquisition of Spectrum Licenses from EchoStar
• Positive Sentiment: Potential operating efficiencies from D-Wave partnership: AT&T expanded its use of D-Wave Quantum’s NASDAQ: QBTS technology for network optimization, including outage detection, technician routing and traffic management. Initial testing reportedly reduced an optimization task from about one hour to 15 seconds. If scaled successfully, the technology could lower operating costs, improve outage response and make network investments more efficient. AT&T and D-Wave Expand Quantum Computing Agreement
• Neutral Sentiment: Financial backdrop remains supportive: AT&T recently exceeded quarterly EPS expectations, reporting $0.65 versus the $0.59 consensus, while revenue increased 2.3% year over year. Management also reiterated its financial outlook and capital-allocation plan. These results help reinforce confidence in the company’s dividend and ongoing network investments, although the spectrum transaction’s contribution to earnings will take time to develop.
• Negative Sentiment: Large capital commitment raises balance-sheet concerns: The $23 billion spectrum purchase is a significant investment for a highly capital-intensive, debt-laden telecom operator. The licenses should improve long-term capacity, but investors may remain concerned about financing costs, leverage and the need to generate sufficient returns from the additional spectrum.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on T. Weiss Ratings cut AT&T from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, July 20th. Argus decreased their price objective 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. Barclays lowered their price objective on shares of AT&T from $26.00 to $24.00 and set an "equal weight" rating on the stock in a research note on Wednesday, July 8th. TD Cowen raised their target price on shares of AT&T from $32.00 to $33.00 and gave the company a "hold" rating in a report on Thursday, July 23rd. Finally, Wells Fargo & Company lifted their target price on shares of AT&T from $18.00 to $20.00 and gave the stock an "underweight" rating in a research report on Thursday, July 23rd. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $29.19.

AT&T 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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