Traders Buy AT&T Inc. (T) on Weakness Following Weak Earnings

Traders bought shares of AT&T Inc. (NYSE:T) on weakness during trading hours on Wednesday following a weaker than expected earnings announcement. $1,037.54 million flowed into the stock on the tick-up and $507.84 million flowed out of the stock on the tick-down, for a money net flow of $529.70 million into the stock. Of all stocks tracked, AT&T had the highest net in-flow for the day. AT&T traded down ($1.37) for the day and closed at $33.49The technology company reported $0.74 earnings per share for the quarter, missing analysts’ consensus estimates of $0.75 by ($0.01). The firm had revenue of $39.67 billion during the quarter, compared to analyst estimates of $40.34 billion. AT&T had a net margin of 8.12% and a return on equity of 14.53%. The business’s revenue was down 3.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.74 earnings per share.

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 1st. Investors of record on Tuesday, October 10th will be given a $0.49 dividend. The ex-dividend date of this dividend is Friday, October 6th. This represents a $1.96 dividend on an annualized basis and a dividend yield of 5.82%. AT&T’s dividend payout ratio is 92.45%.

A number of brokerages recently weighed in on T. Zacks Investment Research downgraded shares of AT&T from a “hold” rating to a “sell” rating in a research report on Thursday. Deutsche Bank AG cut their price target on shares of AT&T from $41.00 to $38.00 and set a “hold” rating on the stock in a research report on Wednesday. Oppenheimer Holdings, Inc. reiterated a “hold” rating on shares of AT&T in a research report on Wednesday. Robert W. Baird cut their price target on shares of AT&T from $43.00 to $42.00 and set an “outperform” rating on the stock in a research report on Wednesday. Finally, Moffett Nathanson reiterated a “neutral” rating on shares of AT&T in a research report on Monday, October 16th. Two analysts have rated the stock with a sell rating, seventeen have assigned a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the company. The company currently has a consensus rating of “Hold” and an average price target of $43.09.

In other news, Director Matthew K. Rose bought 29,600 shares of the firm’s stock in a transaction that occurred on Wednesday, October 25th. The stock was acquired at an average cost of $33.75 per share, with a total value of $999,000.00. Following the completion of the purchase, the director now owns 3,100 shares of the company’s stock, valued at $104,625. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. 0.09% of the stock is currently owned by company insiders.

Large investors have recently added to or reduced their stakes in the stock. Holderness Investments Co. grew its stake in shares of AT&T by 62.9% in the first quarter. Holderness Investments Co. now owns 96,452 shares of the technology company’s stock valued at $4,008,000 after buying an additional 37,234 shares in the last quarter. Doyle Wealth Management lifted its holdings in AT&T by 4.3% during the 2nd quarter. Doyle Wealth Management now owns 37,561 shares of the technology company’s stock valued at $1,417,000 after purchasing an additional 1,559 shares during the last quarter. Telos Capital Management Inc. lifted its holdings in AT&T by 4.8% during the 2nd quarter. Telos Capital Management Inc. now owns 69,994 shares of the technology company’s stock valued at $2,641,000 after purchasing an additional 3,197 shares during the last quarter. Altfest L J & Co. Inc. lifted its holdings in AT&T by 42.1% during the 2nd quarter. Altfest L J & Co. Inc. now owns 45,618 shares of the technology company’s stock valued at $1,721,000 after purchasing an additional 13,510 shares during the last quarter. Finally, Shell Asset Management Co. lifted its holdings in AT&T by 0.4% during the 1st quarter. Shell Asset Management Co. now owns 1,245,965 shares of the technology company’s stock valued at $51,770,000 after purchasing an additional 5,354 shares during the last quarter. 55.03% of the stock is owned by institutional investors and hedge funds.

The firm has a market capitalization of $206.80 billion, a price-to-earnings ratio of 15.83 and a beta of 0.49. The stock’s 50 day moving average is $37.25 and its 200 day moving average is $38.03.

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AT&T Company Profile

AT&T Inc is a holding company. The Company is a provider of communications and digital entertainment services in the United States and the world. The Company operates through four segments: Business Solutions, Entertainment Group, Consumer Mobility and International. The Company offers its services and products to consumers in the United States, Mexico and Latin America and to businesses and other providers of telecommunications services worldwide.

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