Palouse Capital Management Inc. Boosts Stake in AT&T Inc. $T

Key Points

• Palouse Capital Management increased its AT&T stake by 147% in the second quarter, holding 155,310 shares valued at approximately $3.2 million. Institutional investors collectively own 57.1% of AT&T’s stock.
• AT&T reported quarterly earnings of $0.65 per share, beating the $0.59 consensus estimate, while revenue rose 2.3% year over year to $31.56 billion but fell short of expectations.
• AT&T pays a quarterly dividend of $0.2775 per share, equivalent to a 4.7% annualized yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $29.19, though SpaceX’s planned mobile network represents a competitive risk.

Palouse Capital Management Inc. grew its holdings in shares of AT&T Inc. (NYSE:T - Free Report) by 147.0% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 155,310 shares of the technology company's stock after acquiring an additional 92,443 shares during the period. AT&T comprises about 2.0% of Palouse Capital Management Inc.'s investment portfolio, making the stock its 22nd biggest holding. Palouse Capital Management Inc.'s holdings in AT&T were worth $3,215,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also modified their holdings of the company. Rachor Investment Advisory Services LLC purchased a new position in AT&T in the fourth quarter valued at about $25,000. Safe Harbor Fiduciary LLC acquired a new stake in AT&T during the 4th 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 increased 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 purchasing an additional 820 shares during the last quarter. 57.10% of the stock is owned by hedge funds and other institutional investors.

AT&T Stock Up 2.7%

Shares of AT&T stock opened at $23.68 on Friday. The business has a 50-day moving average price of $22.56 and a 200 day moving average price of $25.23. AT&T Inc. has a fifty-two week low of $19.89 and a fifty-two week high of $29.79. The firm has a market cap of $162.24 billion, a P/E ratio of 7.84, a P/E/G ratio of 0.94 and a beta of 0.23. The company has a quick ratio of 0.93, a current ratio of 0.97 and a debt-to-equity ratio of 1.06.

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

AT&T Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, August 3rd. Investors of record on Friday, July 10th were paid a dividend of $0.2775 per share. The ex-dividend date was Friday, July 10th. This represents a $1.11 annualized dividend and a yield of 4.7%. AT&T's dividend payout ratio (DPR) is 36.75%.

Trending Headlines about AT&T

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

• Positive Sentiment: Network capacity upgrade: AT&T selected Ericsson to deploy 600 MHz dual-band radios using spectrum acquired from EchoStar. The investment is expected to improve wireless capacity, coverage, reliability and performance nationwide, potentially supporting customer satisfaction and retention. AT&T and Ericsson Enhance Wireless Capacity, Coverage, and Performance Nationwide
• Positive Sentiment: Quantum-computing collaboration: AT&T’s expanded relationship with D-Wave Quantum produced a reported 240-times improvement in a network-optimization application. While the commercial and financial impact is still uncertain, successful deployment could improve AT&T’s operational efficiency and demonstrate new enterprise uses for quantum computing. Will AT&T’s Expanded Quantum Deal Turn D-Wave Into a Scalable Enterprise Player?
• Positive Sentiment: Product expansion: AT&T launched the amiGO Jr. Tab 2, a $4.99-per-month kids’ tablet that runs on its 5G network. The niche product strengthens AT&T’s differentiated device lineup, though its direct effect on revenue is likely modest. AT&T’s Exclusive Kids Device Line Gets an Upgrade
• Negative Sentiment: Competitive pressure from SpaceX: SpaceX plans to combine Starlink satellite connectivity with terrestrial infrastructure to build a broader mobile service. The prospect of direct competition with AT&T, Verizon and T-Mobile pressured telecom stocks and could increase industry pricing, customer-acquisition and capital-spending challenges. SpaceX Plans Terrestrial Mobile Network to Rival AT&T

Analyst Ratings Changes

Several equities analysts have recently commented on T shares. Wall Street Zen upgraded AT&T from a "sell" rating to a "hold" rating in a research note on Saturday, June 20th. Scotiabank dropped their price target on shares of AT&T from $31.00 to $29.25 and set a "sector perform" rating for the company in a research note on Wednesday, July 15th. Wolfe Research upgraded shares of AT&T from a "peer perform" rating to an "outperform" rating and set a $29.00 price target for the company in a research note on Thursday, July 23rd. Morgan Stanley upped their price target on shares of AT&T from $25.00 to $27.00 and gave the company an "overweight" rating in a report on Thursday, July 23rd. Finally, The Goldman Sachs Group set a $30.00 price objective on shares of AT&T in a research note on Wednesday, July 22nd. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $29.19.

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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