University of Texas Texas AM Investment Management Co. Makes New Investment in AT&T Inc. $T

Key Points

• University of Texas Texas AM Investment Management Co. opened a new position in AT&T during the fourth quarter, buying 149,944 shares worth about $3.7 million.
• AT&T recently reported better-than-expected quarterly results, posting $0.57 EPS versus the $0.55 estimate and revenue of $31.51 billion, while also reaffirming FY2026 EPS guidance of 2.25 to 2.35.
• The stock offers a sizable dividend, with a quarterly payout of $0.2775 per share and an annualized yield of about 4.8%; analyst sentiment remains mostly positive with a consensus rating of Moderate Buy and an average price target of $30.55.

University of Texas Texas AM Investment Management Co. acquired a new stake in AT&T Inc. (NYSE:T - Free Report) during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm acquired 149,944 shares of the technology company's stock, valued at approximately $3,725,000.

Other hedge funds also recently modified their holdings of the company. GGM Financials LLC purchased a new position in AT&T during the 3rd quarter worth $25,000. Rachor Investment Advisory Services LLC bought a new position in shares of AT&T during the 4th quarter worth approximately $25,000. Cresta Advisors Ltd. purchased a new position in shares of AT&T in the 4th quarter worth approximately $26,000. Blueline Advisors LLC purchased a new position in AT&T in the fourth quarter valued at about $26,000. Finally, Winnow Wealth LLC grew its position in shares of AT&T by 362.8% during the 4th quarter. Winnow Wealth LLC now owns 1,046 shares of the technology company's stock valued at $26,000 after acquiring an additional 820 shares during the period. Hedge funds and other institutional investors own 57.10% of the company's stock.

AT&T Price Performance

T opened at $23.25 on Tuesday. The stock has a market capitalization of $161.57 billion, a P/E ratio of 7.80, a PEG ratio of 0.98 and a beta of 0.21. The stock has a 50-day moving average price of $25.22 and a 200-day moving average price of $25.84. The company has a current ratio of 0.92, a quick ratio of 0.87 and a debt-to-equity ratio of 1.05. AT&T Inc. has a 12-month low of $22.32 and a 12-month high of $29.79.

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

AT&T Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, May 1st. Stockholders of record on Friday, April 10th were given a $0.2775 dividend. The ex-dividend date of this dividend was Friday, April 10th. This represents a $1.11 annualized dividend and a dividend yield of 4.8%. AT&T's dividend payout ratio is currently 37.25%.

Key Headlines Impacting AT&T

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

• Positive Sentiment: AT&T is getting some support from upbeat analyst commentary, including recent buy ratings and price targets as high as $31, suggesting Wall Street still sees upside from current levels.
• Positive Sentiment: Investor discussion highlighted AT&T’s 5G and fiber strategy, including its expanded partnership with Rivian for built-in 5G connectivity and continued network/buildout momentum, which could support longer-term revenue growth.
• Positive Sentiment: Some commentary also pointed to AT&T Stadium’s World Cup exposure as a brand-visibility boost that could improve consumer awareness of the company.
• Neutral Sentiment: Recent posts and market chatter continue to frame AT&T as a defensive telecom holding, with investors rotating within the sector rather than making a strong directional bet on the company itself.
• Negative Sentiment: Competitive pressure remains a concern, especially with broadband and 5G rivals intensifying efforts while AT&T simplifies its fiber plans to improve customer uptake and reduce complexity.
• Negative Sentiment: Some investors remain focused on AT&T’s debt load and the possibility that satellite broadband competition could pressure parts of the business, even though one recent analysis argued the SpaceX/Starlink threat is overstated.
• Negative Sentiment: The stock has also been weighed by broader technical weakness, with shares trading closer to their 52-week low than their high, which may be reinforcing cautious sentiment.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the stock. Wall Street Zen cut shares of AT&T from a "hold" rating to a "sell" rating in a report on Saturday, May 30th. Royal Bank Of Canada reissued an "outperform" rating and set a $31.00 price objective on shares of AT&T in a report on Wednesday, May 20th. Arete Research upgraded shares of AT&T from a "sell" rating to a "neutral" rating and set a $28.00 price objective on the stock in a research report on Tuesday, March 10th. Scotiabank lowered their target price on shares of AT&T from $31.50 to $31.00 and set a "sector perform" rating on the stock in a research note on Thursday, April 23rd. Finally, Citigroup lifted their target price on shares of AT&T from $29.00 to $31.50 and gave the company a "buy" rating in a research report on Monday, March 23rd. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $30.55.

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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