AT&T (NYSE:T) Shares Gap Up on Earnings Beat

Posted by on Oct 20th, 2023

AT&T Inc. (NYSE:T – Get Free Report)’s share price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $14.32, but opened at $15.37. AT&T shares last traded at $15.23, with a volume of 23,579,661 shares trading hands.

The technology company reported $0.64 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.02. AT&T had a negative net margin of 7.22% and a positive return on equity of 15.91%. The business had revenue of $30.35 billion during the quarter, compared to the consensus estimate of $30.25 billion. During the same quarter in the prior year, the company posted $0.68 earnings per share. The company’s quarterly revenue was up 1.0% compared to the same quarter last year.

AT&T Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 1st. Shareholders of record on Tuesday, October 10th will be issued a $0.2775 dividend. This represents a $1.11 dividend on an annualized basis and a yield of 7.28%. The ex-dividend date of this dividend is Friday, October 6th. AT&T’s payout ratio is -90.98%.

Wall Street Analyst Weigh In

A number of analysts have commented on T shares. Wells Fargo & Company reduced their price objective on shares of AT&T from $22.00 to $20.00 and set an “overweight” rating for the company in a research note on Thursday, July 20th. Deutsche Bank Aktiengesellschaft reduced their price objective on shares of AT&T from $23.00 to $22.00 in a research note on Friday, July 14th. Royal Bank of Canada reduced their price objective on shares of AT&T from $19.00 to $14.00 and set a “sector perform” rating for the company in a research note on Thursday, August 10th. JPMorgan Chase & Co. reduced their price objective on shares of AT&T from $18.00 to $17.00 and set a “neutral” rating for the company in a research note on Thursday, October 12th. Finally, Citigroup upgraded AT&T from a “neutral” rating to a “buy” rating and set a $17.00 target price on the stock in a report on Tuesday, August 29th. Nine equities research analysts have rated the stock with a hold rating, five have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, AT&T presently has a consensus rating of “Hold” and an average price target of $20.00.

Check Out Our Latest Stock Report on T

Institutional Investors Weigh In On AT&T

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Twelve Points Wealth Management LLC grew its stake in shares of AT&T by 2.8% in the first quarter. Twelve Points Wealth Management LLC now owns 18,866 shares of the technology company’s stock worth $363,000 after acquiring an additional 512 shares during the last quarter. Capital Advisors Wealth Management LLC grew its stake in shares of AT&T by 5.1% in the first quarter. Capital Advisors Wealth Management LLC now owns 11,071 shares of the technology company’s stock worth $213,000 after acquiring an additional 542 shares during the last quarter. Nelson Van Denburg & Campbell Wealth Management Group LLC boosted its stake in AT&T by 1.2% during the first quarter. Nelson Van Denburg & Campbell Wealth Management Group LLC now owns 47,356 shares of the technology company’s stock worth $1,119,000 after buying an additional 547 shares in the last quarter. Retirement Planning Co of New England Inc. boosted its stake in AT&T by 3.2% during the first quarter. Retirement Planning Co of New England Inc. now owns 17,714 shares of the technology company’s stock worth $341,000 after buying an additional 554 shares in the last quarter. Finally, SMH Capital Advisors Inc. boosted its stake in AT&T by 1.8% during the fourth quarter. SMH Capital Advisors Inc. now owns 31,771 shares of the technology company’s stock worth $585,000 after buying an additional 565 shares in the last quarter. Institutional investors and hedge funds own 53.65% of the company’s stock.

AT&T Price Performance

The company has a debt-to-equity ratio of 1.10, a current ratio of 0.68 and a quick ratio of 0.63. The stock’s 50 day simple moving average is $14.64 and its two-hundred day simple moving average is $15.74. The stock has a market cap of $108.99 billion, a price-to-earnings ratio of -12.50, a P/E/G ratio of 1.78 and a beta of 0.63.

AT&T Company Profile

(Get Free Report)

AT&T Inc provides telecommunications and technology services worldwide. The company operates through two segments, Communications and Latin America. The Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, and carrying cases and hands-free devices through its own company-owned stores, agents, and third-party retail stores.

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