AT&T (NYSE:T) Downgraded by Zacks Investment Research

AT&T (NYSE:T) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Wednesday, Zacks.com reports. They presently have a $33.00 price target on the technology company’s stock. Zacks Investment Research‘s price target indicates a potential upside of 3.86% from the stock’s current price.

According to Zacks, “AT&T is witnessing a steady decline in linear TV subscribers and legacy services. Its wireline division is also facing loss in access line due to competitive pressure from VoIP service providers. As it tries to woo customers with discounts, freebies and cash credits, margins tend to fall. The company cancelled its stock buyback program due to the severity of the virus outbreak and withdrew guidance. However, AT&T is well positioned to benefit from streaming services like AT&T TV and HBO Max. The company is committed to three-year financial framework with sustained investments and debt-reduction efforts. AT&T intends to deploy a standards-based, nationwide mobile 5G network in 2020 to spur growth. The company expects to gain a competitive edge through edge computing services that offers the flexibility to better manage data traffic.”

Several other equities research analysts have also recently commented on T. Credit Suisse Group lowered their price target on shares of AT&T from $36.00 to $33.00 and set a “neutral” rating for the company in a research report on Monday, April 13th. Bank of America lowered their price target on shares of AT&T from $43.00 to $36.00 and set a “buy” rating for the company in a research report on Thursday, April 23rd. Oppenheimer assumed coverage on shares of AT&T in a report on Wednesday, April 22nd. They set a “buy” rating and a $47.00 price objective for the company. Raymond James cut shares of AT&T from an “outperform” rating to a “market perform” rating in a report on Monday, March 16th. Finally, Morgan Stanley reduced their price target on shares of AT&T from $42.00 to $38.00 and set an “overweight” rating for the company in a report on Friday, April 17th. Four equities research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and eleven have given a buy rating to the company. The company has an average rating of “Hold” and a consensus price target of $36.02.

Shares of NYSE T traded up $0.95 during trading on Wednesday, reaching $31.78. The company had a trading volume of 31,804,511 shares, compared to its average volume of 33,079,972. AT&T has a 52 week low of $26.08 and a 52 week high of $39.70. The stock has a market cap of $214.63 billion, a PE ratio of 16.17, a PEG ratio of 1.64 and a beta of 0.72. The company has a debt-to-equity ratio of 0.75, a quick ratio of 0.76 and a current ratio of 0.76. The business’s 50 day moving average price is $29.81 and its 200-day moving average price is $35.16.

AT&T (NYSE:T) last announced its earnings results on Wednesday, April 22nd. The technology company reported $0.84 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.85 by ($0.01). AT&T had a return on equity of 13.27% and a net margin of 8.05%. The company had revenue of $42.78 billion during the quarter, compared to the consensus estimate of $44.75 billion. During the same period in the prior year, the firm posted $0.86 earnings per share. The company’s revenue was down 4.6% on a year-over-year basis. Equities analysts anticipate that AT&T will post 3.29 earnings per share for the current year.

In other news, Director Stephen J. Luczo acquired 36,000 shares of the business’s stock in a transaction on Wednesday, April 22nd. The shares were purchased at an average cost of $29.38 per share, with a total value of $1,057,680.00. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Geoffrey Y. Yang acquired 6,754 shares of the business’s stock in a transaction on Friday, April 24th. The shares were purchased at an average cost of $29.39 per share, for a total transaction of $198,500.06. Following the completion of the acquisition, the director now directly owns 9,398 shares in the company, valued at $276,207.22. The disclosure for this purchase can be found here. Company insiders own 0.07% of the company’s stock.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in T. Garrett Wealth Advisory Group LLC raised its stake in AT&T by 2.0% in the 4th quarter. Garrett Wealth Advisory Group LLC now owns 13,307 shares of the technology company’s stock valued at $520,000 after acquiring an additional 263 shares during the period. FCA Corp TX grew its holdings in AT&T by 4.2% during the 4th quarter. FCA Corp TX now owns 6,685 shares of the technology company’s stock valued at $261,000 after buying an additional 272 shares in the last quarter. Cibc Bank USA grew its holdings in AT&T by 0.9% during the 4th quarter. Cibc Bank USA now owns 33,133 shares of the technology company’s stock valued at $1,295,000 after buying an additional 299 shares in the last quarter. American Asset Management Inc. grew its holdings in AT&T by 1.1% during the 4th quarter. American Asset Management Inc. now owns 27,063 shares of the technology company’s stock valued at $1,058,000 after buying an additional 300 shares in the last quarter. Finally, Beaton Management Co. Inc. grew its holdings in AT&T by 0.4% during the 4th quarter. Beaton Management Co. Inc. now owns 74,222 shares of the technology company’s stock valued at $2,901,000 after buying an additional 300 shares in the last quarter. Institutional investors own 53.83% of the company’s stock.

AT&T Company Profile

AT&T Inc provides telecommunication, media, and technology services worldwide. The company operates through four segments: Communications, WarnerMedia, Latin America, and Xandr. The Communications segment provides wireless and wireline telecom, video, and broadband and Internet services; video entertainment services using satellite, IP-based, and streaming options; and audio programming services under the AT&T, Cricket, AT&T PREPAID, and DIRECTV brands to residential and business customers.

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