AT&T (NYSE:T) Shares Rise 0.4% - What's Next?

AT&T Inc. (NYSE:T) experienced a modest rise of 0.4% in its stock price during trading on Tuesday. The shares reached a peak of $22.22 before closing at $22.20, down from a previous close of $22.11. Approximately 5,568,618 shares changed hands during midday trading, which reflects a significant decline of 84% from the average daily volume of 35,532,586 shares.

Wall Street Analysts Share Their Insights

Several research firms have recently provided their evaluations of AT&T's stock. On October 1st, HSBC Global Research upgraded the company to a "strong-buy" rating. Meanwhile, Wells Fargo & Company adjusted their price target from $25.00 to $24.00 while maintaining an "overweight" rating in a report dated October 24th.

Additionally, Citigroup raised their target on AT&T from $21.00 to $24.00 and gave the stock a "buy" rating in a September 11th report. Oppenheimer also increased their price objective on AT&T from $23.00 to $24.00, designating it as an "outperform" stock in a report released on October 24th. Likewise, TD Cowen upped their target price from $21.00 to $23.00, assigning a "hold" rating on July 25th.

Currently, one analyst has given AT&T a sell rating, eight have rated it as a hold, while ten have offered a buy rating, and one has issued a strong buy rating. The average rating across analysts stands at "Moderate Buy" with a price target of $23.40, according to MarketBeat.com.

Analyzing AT&T's Stock Performance

AT&T has a market capitalization of $159.75 billion and a price-to-earnings ratio of 18.13. Its PEG ratio is 3.74, and the stock has a beta of 0.60. The stock's 50-day moving average price is $21.26, while its 200-day moving average is $19.19. Financial ratios reveal a current ratio of 0.73, a quick ratio of 0.67, and a debt-to-equity ratio of 1.09.

The company recently released its quarterly earnings data on October 23rd, reporting earnings of $0.60 per share, which surpassed the consensus estimate of $0.57 by $0.03. AT&T's return on equity was 13.97%, with a net margin of 7.42%. Revenue for the quarter was $30.20 billion, barely missing the analysts' expected figure of $30.50 billion. Compared to the same period last year, where the business saw $0.64 earnings per share, AT&T experienced a 0.5% decline in revenue year-over-year. Analysts predict the company will achieve earnings of $2.21 per share for the current fiscal year.

Upcoming Dividend Announcement

AT&T has also announced a quarterly dividend, which is set to be paid on Friday, November 1st. Shareholders on record as of Thursday, October 10th will receive a dividend of $0.2775 per share. This amounts to an annual dividend of $1.11, which gives a yield of 4.98%. The ex-dividend date was October 10th, and the current dividend payout ratio stands at 90.24%.

Institutional Investments in AT&T

Recently, several hedge funds have adjusted their holdings in AT&T. For instance, Strategic Financial Concepts LLC increased its stake by 227.6% during the second quarter, owning 131,813 shares valued at $25,000 after acquiring 91,578 additional shares. Riggs Asset Management Co. Inc. boosted its holdings by 356.5% in the same quarter, owning 1,429 shares valued at $27,000 after adding 1,116 shares to their position.

American Capital Advisory LLC also increased its stake by 107.5%, owning 1,558 shares valued at $30,000 after buying 807 additional shares. Altshuler Shaham Ltd established a new stake in AT&T during the second quarter, valued at around $30,000. Finally, Loring Wolcott & Coolidge Fiduciary Advisors LLP MA grew its position by 176.6%, now owning 1,867 shares valued at $35,000 after buying 1,192 shares during the previous quarter. Overall, institutional investors and hedge funds hold 57.10% of the company’s stock.

About AT&T

AT&T Inc. is a global provider of telecommunications and technology services. The company operates through two segments: Communications and Latin America. The Communications segment offers wireless voice and data services, and sells mobile devices, data cards, and related accessories through its company-owned and retail outlets.

Final Thoughts

As analysts and institutional investors continue to show interest in AT&T, potential investors may be evaluating if it’s the right time to buy shares in the company or to explore other stock options.

AT&T, stock, analysis