AT&T (NYSE:T) Stock Jumps 1.7% – Still a Buy?

AT&T Inc. (NYSE:T) shares were up 1.7% on Tuesday. The stock traded as high as $23.02 and last traded at $22.8660. Approximately 46,615,723 shares were traded during trading, a decline of 4% from the average daily volume of 48,523,121 shares. The stock had previously closed at $22.49.

More AT&T News

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

• Positive Sentiment: Mexico divestiture sharpens capital allocation: AT&T agreed to sell its Mexican wireless business to Grupo Televisa and Fintech Holdings for $2 billion in cash, plus potential additional benefits. The transaction, expected to close in early 2027 pending approvals, should allow AT&T to concentrate investment on its U.S. fiber and 5G networks. AT&T to Sell AT&T Mexico to Grupo Televisa and Fintech Holdings
• Positive Sentiment: Fiber expansion gains scale: AT&T’s $5.75 billion purchase of Lumen Technologies’ consumer fiber business adds more than 1 million subscribers and over 4 million locations. Buying established networks could accelerate broadband growth and support bundled wireless and internet offerings, though investors will assess whether the acquisition creates more value than internally building fiber. AT&T: Does Buying Fiber Create More Value Than Building It?
• Positive Sentiment: Customer-service initiative supports retention: AT&T expanded its “America’s Best Guarantee,” promising access to an expert within five minutes or a scheduled callback, along with dedicated support for customers combining fiber or Internet Air with wireless service. The move may improve customer satisfaction and reduce churn, although its direct financial impact is uncertain. AT&T Expands America’s Best Guarantee
• Neutral Sentiment: Earnings optimism: Analysts expect AT&T’s upcoming results to benefit from favorable earnings trends and potential upside to estimates. Investors are also weighing management’s evolving emphasis on growth and network investment against the company’s debt-reduction priorities. AT&T Earnings Expected to Grow
• Negative Sentiment: SpaceX-related competition pressures wireless stocks: Reports linking SpaceX to spectrum or satellite-based connectivity developments have weighed on AT&T and other carriers by raising concerns about future competition. Some commentary views the selloff as a potential buying opportunity, but the technology’s longer-term impact on AT&T’s wireless economics remains unclear. AT&T Stock Got Crushed by SpaceX News
• Negative Sentiment: Data-breach settlement adds a legal overhang: A court approved a $177 million settlement related to two 2024 AT&T data breaches. The payment is unlikely to alter the company’s overall investment thesis, but it reinforces cybersecurity and reputational risks. AT&T Settlement Payout

Analyst Ratings Changes

T has been the topic of several analyst reports. The Goldman Sachs Group set a $30.00 price objective on AT&T in a research note on Wednesday, July 22nd. Sanford C. Bernstein downgraded shares of AT&T from an “outperform” rating to a “market perform” rating and set a $24.00 target price on the stock. in a research report on Tuesday. Weiss Ratings raised AT&T from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, August 3rd. Morgan Stanley upped their target price on shares of AT&T from $27.00 to $28.00 and gave the company an “overweight” rating in a report on Monday, September 28th. Finally, Argus decreased their price target on AT&T from $33.00 to $30.00 and set a “buy” rating for the company in a report on Thursday, July 23rd. Eleven analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, AT&T currently has an average rating of “Moderate Buy” and a consensus price target of $29.05.

AT&T Stock Up 1.9%

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 firm has a market cap of $160.93 billion, a price-to-earnings ratio of 7.78, a P/E/G ratio of 1.14 and a beta of 0.25. The firm has a 50 day moving average price of $24.99 and a 200-day moving average price of $24.49.

AT&T (NYSE:T) last announced its quarterly 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 the consensus estimate of $31.80 billion. AT&T had a net margin of 16.94% and a return on equity of 12.86%. The company’s revenue for the quarter was up 2.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.54 earnings per share. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS. On average, equities analysts forecast that AT&T Inc. will post 2.33 EPS for the current year.

AT&T Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Monday, October 12th will be issued a $0.2775 dividend. The ex-dividend date is Friday, October 9th. This represents a $1.11 annualized dividend and a yield of 4.7%. AT&T’s payout ratio is 36.75%.

Institutional Investors Weigh In On AT&T

Several hedge funds have recently modified their holdings of the stock. State Street Corp boosted its position in shares of AT&T by 5.8% during the second quarter. State Street Corp now owns 334,273,613 shares of the technology company’s stock worth $6,919,464,000 after purchasing an additional 18,468,679 shares in the last quarter. Bank of America Corp DE grew its holdings 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 worth $3,629,307,000 after buying an additional 5,449,222 shares in the last quarter. Bank of New York Mellon Corp grew its holdings in shares of AT&T by 12.7% during the first quarter. Bank of New York Mellon Corp now owns 72,764,509 shares of the technology company’s stock worth $2,109,443,000 after buying an additional 8,197,935 shares in the last quarter. GQG Partners LLC bought a new position in shares of AT&T during the second quarter worth about $1,223,364,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position 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 valued at $1,151,254,000 after buying an additional 1,336,556 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 (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.