Equity Investment Corp Purchases 1,067,802 Shares of AT&T Inc. $T

Key Points

• Equity Investment Corp increased its AT&T stake by 21.2%, buying 1,067,802 shares in the third quarter to hold 6.1 million shares valued at about $148.8 million.
• Institutional investors own 57.1% of AT&T shares; analyst consensus is “Moderate Buy”, with an average price target of $27.56.
• AT&T beat quarterly earnings and revenue estimates, with earnings per share of $0.65 and revenue of $32.32 billion. Its quarterly dividend of $0.2775 per share equates to a 5.1% yield.

Equity Investment Corp boosted its position in shares of AT&T Inc. (NYSE:T - Free Report) by 21.2% in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 6,097,556 shares of the technology company's stock after purchasing an additional 1,067,802 shares during the quarter. AT&T comprises 2.0% of Equity Investment Corp's holdings, making the stock its 11th biggest position. Equity Investment Corp owned 0.09% of AT&T worth $148,780,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. State Street Corp boosted its stake in shares of AT&T by 5.8% in the 2nd quarter. State Street Corp now owns 334,273,613 shares of the technology company's stock valued at $6,919,464,000 after purchasing an additional 18,468,679 shares during the last quarter. Bank of America Corp DE grew its position in shares of AT&T by 4.6% during the 1st quarter. Bank of America Corp DE now owns 125,191,700 shares of the technology company's stock worth $3,629,307,000 after buying an additional 5,449,222 shares during the period. Bank of New York Mellon Corp raised its stake in shares of AT&T by 3.5% during the second quarter. Bank of New York Mellon Corp now owns 75,323,574 shares of the technology company's stock worth $1,559,198,000 after buying an additional 2,559,065 shares during the last quarter. GQG Partners LLC bought a new stake in shares of AT&T during the second quarter worth approximately $1,223,364,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of AT&T by 2.5% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 55,616,152 shares of the technology company's stock worth $1,151,254,000 after buying an additional 1,336,556 shares during the last quarter. 57.10% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

T has been the subject of a number of analyst reports. Deutsche Bank Aktiengesellschaft lowered their target price on shares of AT&T from $32.00 to $30.00 and set a "buy" rating for the company in a report on Tuesday, October 27th. Barclays cut their price target on AT&T from $24.00 to $21.00 and set an "equal weight" rating on the stock in a research note on Thursday, October 22nd. Wells Fargo & Company raised their price target on AT&T from $18.00 to $20.00 and gave the stock an "underweight" rating in a research report on Thursday, July 23rd. Raymond James Financial reduced their price target on AT&T from $33.00 to $29.00 in a research report on Thursday, October 22nd. Finally, Citigroup decreased their price objective on AT&T from $31.50 to $28.00 and set a "buy" rating for the company in a research note on Thursday, July 23rd. Twelve equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $27.56.

AT&T Stock Performance

Shares of T stock opened at $21.95 on Wednesday. The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.82 and a current ratio of 0.87. AT&T Inc. has a 52 week low of $19.89 and a 52 week high of $29.43. The company's 50 day moving average price is $23.80 and its two-hundred day moving average price is $24.90. The company has a market capitalization of $147.89 billion, a P/E ratio of 9.12, a price-to-earnings-growth ratio of 1.08 and a beta of 0.30.

AT&T (NYSE:T - Get Free Report) last released its quarterly earnings results on Wednesday, October 21st. The technology company reported $0.65 earnings per share for the quarter, beating the consensus estimate of $0.60 by $0.05. AT&T had a net margin of 10.19% and a return on equity of 13.41%. The company had revenue of $32.32 billion during the quarter, compared to analysts' expectations of $31.69 billion. During the same quarter in the prior year, the company earned $0.54 earnings per share. The business's quarterly revenue was up 5.2% compared to the same quarter last year. On average, analysts expect that AT&T Inc. will post 2.40 earnings per share for the current fiscal year.

AT&T Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, November 2nd. Investors of record on Monday, October 12th were issued a dividend of $0.2775 per share. This represents a $1.11 dividend on an annualized basis and a dividend yield of 5.1%. The ex-dividend date was Friday, October 9th. AT&T's dividend payout ratio (DPR) is presently 60.00%.

Key Stories Impacting AT&T

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

• Positive Sentiment: AT&T says it plans to maintain its annual dividend at $1.11 per share and repurchase about $10 billion of stock this year. One valuation analysis also suggests the shares could be roughly 34% below fair value, though that estimate depends on the company’s ability to generate cash over time. Article: The 10-Year Treasury Just Hit 5%. AT&T Pays About the Same Article: AT&T Stock May Be 34% Below Fair Value
• Positive Sentiment: A Cullen Capital Management filing disclosed a purchase of about 1.89 million AT&T shares as of September 30. The delayed filing is a modest positive signal, but does not indicate current trading. Article: Fund Update
• Neutral Sentiment: Dividend-focused analysis describes AT&T’s payout as relatively safe but not growing. The 5% 10-year Treasury yield offers investors a competing income option, potentially limiting the appeal of AT&T’s dividend. Article: How Safe Is Each Dividend Check?
• Negative Sentiment: Coverage emphasized AT&T’s substantial debt burden. Separately, Jim Cramer urged investors to sell, citing the prospect of SpaceX’s Starlink Mobile entering wireless through a nationwide 5G network partnership with Qualcomm. That is a competitive concern, not evidence of an immediate impact on AT&T’s results. Article: Should Dividend Stock Investors Buy AT&T Stock? Article: Jim Cramer on SpaceX and AT&T

AT&T Company Profile

AT&T Inc. NYSE: T is a telecommunications company that provides wireless communications, broadband, and related connectivity services. Its offerings include mobile voice and data plans, internet access, fiber broadband, fixed wireless services, and business communications solutions. The company serves consumers, businesses, government agencies, and other organizations primarily in the United States. AT&T’s business operations include wireless network services, wireline connectivity, fiber-optic internet, voice services, and networking solutions designed to connect locations, devices, and applications.

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