AT&T (NYSE:T) Shares Gap Down on Analyst Downgrade

AT&T Inc. (NYSE:T) shares gapped down before the market opened on Friday after Scotiabank lowered their price target on the stock from $27.50 to $26.50. The stock had previously closed at $24.87, but opened at $22.38. Scotiabank currently has a sector perform rating on the stock. AT&T shares last traded at $22.7240, with a volume of 29,794,433 shares traded.

A number of other analysts have also recently weighed in on the stock. Barclays decreased their price target on shares of AT&T from $26.00 to $24.00 and set an “equal weight” rating for the company in a research report on Wednesday, July 8th. Wells Fargo & Company boosted their price objective on AT&T from $18.00 to $20.00 and gave the stock an “underweight” rating in a research note on Thursday, July 23rd. TD Cowen upped their target price on AT&T from $32.00 to $33.00 and gave the stock a “hold” rating in a research report on Thursday, July 23rd. Wall Street Zen upgraded AT&T from a “sell” rating to a “hold” rating in a research note on Saturday, June 20th. Finally, BNP Paribas Exane upgraded AT&T from a “neutral” rating to an “outperform” rating and raised their target price for the company from $26.00 to $30.00 in a report on Monday, September 21st. Twelve analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $29.11.

Key AT&T News

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

• Positive Sentiment: AT&T announced a new iPhone Duo promotion offering eligible customers up to $1,200 off with a trade-in. The offer, backed by the company’s “America’s Best Guarantee,” could support customer acquisition and retention. AT&T Delivers Value, Choice, and Flexibility With the New iPhone Duo
• Positive Sentiment: AT&T’s recently announced fiber joint venture with Global Infrastructure Partners and CPP Investments remains a longer-term support. The platform is targeting more than 60 million locations by 2030, while expected proceeds may help reduce debt, fund network investment and return capital to shareholders. Is AT&T Still Undervalued as Its New Fiber Venture Expands Reach?
• Neutral Sentiment: Scotiabank lowered its AT&T price target from $27.50 to $26.50 and maintained a “sector perform” rating. The revised target still implies moderate upside but signals limited near-term conviction.
• Negative Sentiment: SpaceX agreed to acquire nationwide low-band spectrum for Starlink Mobile, intensifying fears that satellite-to-phone service could challenge AT&T, Verizon and T-Mobile. Investors broadly sold wireless-carrier shares as the deal reshaped expectations for future competition. SpaceX Deal to Acquire Spectrum License Hammers Shares of AT&T, Verizon and T-Mobile
• Negative Sentiment: The competitive threat is compounded by valuation and income-sector pressure: elevated Treasury yields make telecom dividends less attractive, while uncertainty around the October ex-dividend timing and the lack of a fresh operating update have added to selling pressure ahead of AT&T’s scheduled third-quarter earnings report on October 21.
• Negative Sentiment: AT&T also faces an approved $177 million settlement related to a data breach, creating a modest financial and reputational overhang, although it appears secondary to the SpaceX-driven selloff.

Hedge Funds Weigh In On AT&T

A number of institutional investors have recently added to or reduced their stakes in the company. IFM Investors Pty Ltd boosted its stake in shares of 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 worth $43,142,000 after acquiring an additional 74,684 shares in the last quarter. Parr Mcknight Wealth Management Group LLC acquired a new position in AT&T during the first quarter valued at approximately $2,901,000. 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 buying an additional 59,279 shares during the period. Orographic Financial Advisors LLC acquired a new position in AT&T in the 1st quarter valued at $3,449,000. Finally, Deroy & Devereaux Private Investment Counsel Inc. raised its holdings in AT&T by 34.5% in the 2nd quarter. Deroy & Devereaux Private Investment Counsel Inc. now owns 1,075,110 shares of the technology company’s stock worth $22,255,000 after acquiring an additional 275,985 shares during the period. Institutional investors and hedge funds own 57.10% of the company’s stock.

AT&T Stock Down 7.5%

The company has a current ratio of 0.97, a quick ratio of 0.93 and a debt-to-equity ratio of 1.06. The stock has a market cap of $157.71 billion, a P/E ratio of 7.59, a P/E/G ratio of 1.22 and a beta of 0.25. The firm’s fifty day moving average is $25.05 and its 200 day moving average is $24.66.

AT&T (NYSE:T) last announced its quarterly earnings data on Wednesday, July 22nd. The technology company reported $0.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.59 by $0.06. The business had revenue of $31.56 billion for the quarter, compared to the consensus estimate of $31.80 billion. AT&T had a net margin of 16.94% and a return on equity of 12.86%. AT&T’s quarterly revenue was up 2.3% on a year-over-year basis. During the same quarter last year, the company posted $0.54 earnings per share. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS. As a group, equities research analysts forecast that AT&T Inc. will post 2.33 EPS for the current year.

AT&T Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Monday, October 12th will be paid a $0.2775 dividend. The ex-dividend date of this dividend is Friday, October 9th. This represents a $1.11 annualized dividend and a yield of 4.8%. AT&T’s payout ratio is currently 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.