AT&T (NYSE:T) Stock Falls 7.8% After Analyst Downgrade

Key Points

• AT&T shares fell 7.8% to about $20.97 after JPMorgan lowered its price target from $33 to $31, despite maintaining an Overweight rating. Trading volume more than doubled the average.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and average price target of $28.55, although several firms recently reduced their targets.
• AT&T reported quarterly revenue of $32.32 billion and adjusted EPS of $0.65, beating estimates, while its $0.2775 quarterly dividend implies a roughly 5.3% yield.

AT&T Inc. (NYSE:T - Get Free Report)'s share price fell 7.8% during trading on Friday after JPMorgan Chase & Co. lowered their price target on the stock from $33.00 to $31.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. AT&T traded as low as $20.92 and last traded at $20.9650. 99,471,718 shares were traded during trading, an increase of 104% from the average daily volume of 48,824,895 shares. The stock had previously closed at $22.74.

T has been the topic of several other research reports. Barclays cut their price target on shares of AT&T from $24.00 to $21.00 and set an "equal weight" rating on the stock in a report on Thursday. Argus decreased their price objective on shares of AT&T from $33.00 to $30.00 and set a "buy" rating for the company in a report on Thursday, July 23rd. Scotiabank dropped their target price on shares of AT&T from $27.50 to $26.50 and set a "sector perform" rating for the company in a research report on Friday, October 9th. TD Cowen reaffirmed a "hold" rating and set a $33.00 target price on shares of AT&T in a research note on Thursday. Finally, Weiss Ratings raised shares of AT&T from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, August 3rd. Twelve equities research analysts have rated the stock with 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 presently has a consensus rating of "Moderate Buy" and an average price target of $28.55.

Trending Headlines about AT&T

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

• Positive Sentiment: AT&T reported third-quarter revenue of $32.32 billion and adjusted earnings of $0.65 per share, exceeding analyst expectations. Strong fiber and wireless trends, along with raised 2026 guidance, support the company’s operating outlook. AT&T beats earnings and raises profit outlook
• Positive Sentiment: Analysts continue to see potential upside: Argus reaffirmed a Buy rating with a $30 price target, while JPMorgan and KeyCorp maintained Overweight ratings despite lowering their targets. Erste Group also modestly increased its 2026 EPS forecast to $2.35. Argus rating
• Positive Sentiment: AT&T’s valuation, free-cash-flow generation and roughly 5% dividend yield may appeal to value and income-oriented investors after the recent pullback. AT&T long-term value analysis

Hedge Funds Weigh In On AT&T

Several institutional investors and hedge funds have recently modified their holdings of T. State Street Corp lifted its stake in shares of AT&T by 5.8% in the second quarter. State Street Corp now owns 334,273,613 shares of the technology company's stock worth $6,919,464,000 after buying an additional 18,468,679 shares in the last quarter. Bank of America Corp DE increased its position in shares of AT&T by 4.6% during the first quarter. Bank of America Corp DE now owns 125,191,700 shares of the technology company's stock valued at $3,629,307,000 after acquiring an additional 5,449,222 shares in the last quarter. Bank of New York Mellon Corp increased its position 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 valued at $1,559,198,000 after acquiring an additional 2,559,065 shares in the last quarter. GQG Partners LLC purchased a new position in AT&T in the 2nd quarter worth approximately $1,223,364,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in AT&T by 2.5% in the 2nd 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 acquiring an additional 1,336,556 shares during the last quarter. 57.10% of the stock is currently owned by institutional investors.

AT&T Price Performance

The firm has a market capitalization of $143.66 billion, a P/E ratio of 6.94, a PEG ratio of 1.04 and a beta of 0.25. The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.93 and a current ratio of 0.87. The firm has a 50-day moving average of $24.86 and a 200-day moving average of $24.25.

AT&T (NYSE:T - Get Free Report) last released its quarterly earnings data on Wednesday, October 21st. The technology company reported $0.65 EPS for the quarter, topping the consensus estimate of $0.60 by $0.05. AT&T had a return on equity of 13.41% and a net margin of 10.19%. The company had revenue of $32.32 billion during the quarter, compared to the consensus estimate of $31.69 billion. During the same period last year, the company earned $0.54 EPS. AT&T's revenue for the quarter was up 5.2% on a year-over-year basis. As a group, analysts predict that AT&T Inc. will post 2.39 EPS for the current year.

AT&T Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Monday, October 12th will be paid a $0.2775 dividend. This represents a $1.11 annualized dividend and a dividend yield of 5.3%. The ex-dividend date is Friday, October 9th. AT&T's dividend payout ratio is 36.75%.

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.

AT&T traces its history to the Bell System and has operated under its current corporate name since 2005, following the acquisition of AT&T Corp.

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