AT&T (NYSE:T) Shares Up 2.4% - Here's Why

Key Points

• AT&T shares rose 2.4% to $26.03, as investors responded to improving operating margins while the company winds down its legacy copper network, potentially supporting cash flow and earnings.
• Bullish coverage points to AT&T’s discounted valuation, strong cash generation, fiber expansion and expected 3%–4% EBITDA growth in 2026; analysts give the stock a “Moderate Buy” rating with an average price target of $29.19.
• AT&T recently beat quarterly EPS estimates and offers a 4.3% dividend yield, though declining legacy operations and rural service-quality concerns remain risks.

AT&T Inc. (NYSE:T - Get Free Report) shares rose 2.4% during trading on Friday . The stock traded as high as $26.03 and last traded at $26.03. 22,667,214 shares traded hands during trading, a decline of 54% from the average session volume of 49,759,965 shares. The stock had previously closed at $25.43.

AT&T News Roundup

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

• Positive Sentiment: AT&T’s operating margin reportedly reached a multiyear best as the company winds down its legacy copper network. The resulting operating leverage and lower copper-related costs could support cash flow and earnings growth. AT&T Stock's Margin Hit A Multi-Year Best As Its Copper Network Winds Down
• Positive Sentiment: Recent bullish analysis views AT&T’s turnaround as sustainable, citing discounted valuation, robust cash generation, fiber expansion and growth in its Advanced Connectivity segment. Management’s projected EBITDA growth of 3%–4% in 2026, with faster growth expected later, provides a potential catalyst. AT&T Doesn't Need Heroic Results To Offer Heroic Upside
• Positive Sentiment: Coverage indicates AT&T, T-Mobile and Verizon may have avoided a competitive setback associated with satellite connectivity. A reduced near-term threat from satellite alternatives could ease concerns about wireless customer losses and pricing pressure. AT&T, T-Mobile, and Verizon defeat a common foe
• Neutral Sentiment: AT&T is promoting free Turbo Live access at selected professional and college football season openers while introducing paid season passes. The initiative may strengthen customer engagement and brand visibility, but its immediate financial impact is uncertain. AT&T Kicks Off Football Season with Free Turbo Live and Introduces Season Passes
• Neutral Sentiment: AT&T will release third-quarter 2026 results before the market opens on October 21 and hold a conference call afterward. The announcement itself does not change fundamentals, but the report will be the next major catalyst for the stock. AT&T to Release Third-Quarter 2026 Earnings on Oct. 21
• Negative Sentiment: Although the copper-network transition is improving margins, AT&T still faces headwinds from declining legacy operations and concerns about service quality for rural customers. These issues could limit growth if fiber and wireless gains do not offset the older businesses’ deterioration.

Analyst Ratings Changes

T has been the topic of a number of recent research reports. Morgan Stanley increased their price target on AT&T from $25.00 to $27.00 and gave the stock an "overweight" rating in a research report on Thursday, July 23rd. The Goldman Sachs Group set a $30.00 price objective on shares of AT&T in a research note on Wednesday, July 22nd. Wolfe Research raised shares of AT&T from a "peer perform" rating to an "outperform" rating and set a $29.00 target price on the stock in a research report on Thursday, July 23rd. TD Cowen upped their price target on shares of AT&T from $32.00 to $33.00 and gave the stock a "hold" rating in a research report on Thursday, July 23rd. Finally, Barclays cut 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 report on Wednesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, AT&T has an average rating of "Moderate Buy" and an average target price of $29.19.

AT&T Stock Performance

The firm's 50 day moving average is $23.06 and its 200 day moving average is $25.23. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.93 and a current ratio of 0.97. The stock has a market cap of $178.37 billion, a P/E ratio of 8.62, a price-to-earnings-growth ratio of 1.05 and a beta of 0.23.

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

AT&T Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 3rd. Stockholders of record on Friday, July 10th were issued a $0.2775 dividend. This represents a $1.11 annualized dividend and a dividend yield of 4.3%. The ex-dividend date of this dividend was Friday, July 10th. AT&T's payout ratio is 36.75%.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. IFM Investors Pty Ltd grew its stake in AT&T by 5.3% during the 1st quarter. IFM Investors Pty Ltd now owns 1,488,172 shares of the technology company's stock valued at $43,142,000 after acquiring an additional 74,684 shares in the last quarter. Parr Mcknight Wealth Management Group LLC purchased a new position in AT&T in the 1st quarter worth approximately $2,901,000. World Investment Advisors boosted its holdings in shares of AT&T by 85.0% during the 4th quarter. World Investment Advisors now owns 338,942 shares of the technology company's stock worth $8,419,000 after purchasing an additional 155,728 shares during the last quarter. Cerity Partners LLC boosted its holdings in shares of AT&T by 3.7% during the 4th quarter. Cerity Partners LLC now owns 1,668,862 shares of the technology company's stock worth $41,449,000 after purchasing an additional 59,279 shares during the last quarter. Finally, ING Groep NV increased its holdings in shares of AT&T by 120.3% in the fourth quarter. ING Groep NV now owns 2,050,310 shares of the technology company's stock valued at $50,930,000 after purchasing an additional 1,119,731 shares during the last quarter. 57.10% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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