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

AT&T Inc. (NYSE:T)’s share price 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.

Other research analysts have also recently issued research reports about the stock. BNP Paribas Exane upgraded shares of AT&T from a “neutral” rating to an “outperform” rating and lifted their target price for the company from $26.00 to $30.00 in a research note on Monday, September 21st. Argus lowered their target price on AT&T from $33.00 to $30.00 and set a “buy” rating for the company in a research note on Thursday, July 23rd. Wells Fargo & Company lifted their price target on AT&T from $18.00 to $20.00 and gave the company an “underweight” rating in a report on Thursday, July 23rd. The Goldman Sachs Group set a $30.00 price target on shares of AT&T in a research report on Wednesday, July 22nd. Finally, Royal Bank Of Canada decreased their price objective on shares of AT&T from $31.00 to $27.00 and set an “outperform” rating on the stock in a report on Monday, July 20th. Twelve investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $29.11.

More 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.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. IFM Investors Pty Ltd lifted its stake in AT&T by 5.3% during the first quarter. IFM Investors Pty Ltd now owns 1,488,172 shares of the technology company’s stock worth $43,142,000 after purchasing an additional 74,684 shares during the last quarter. Parr Mcknight Wealth Management Group LLC bought a new position in shares of AT&T in the 1st quarter valued at $2,901,000. Cerity Partners LLC increased its stake in shares of AT&T by 3.7% in the 4th quarter. Cerity Partners LLC now owns 1,668,862 shares of the technology company’s stock valued at $41,449,000 after purchasing an additional 59,279 shares during the last quarter. Orographic Financial Advisors LLC bought a new stake in shares of AT&T during the 1st quarter worth $3,449,000. Finally, Deroy & Devereaux Private Investment Counsel Inc. lifted its position in shares of AT&T by 34.5% during 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 buying an additional 275,985 shares during the last quarter. Institutional investors and hedge funds own 57.10% of the company’s stock.

AT&T Stock Down 7.5%

The company has a quick ratio of 0.93, a current ratio of 0.97 and a debt-to-equity ratio of 1.06. The firm has a 50 day moving average of $25.05 and a two-hundred day moving average of $24.66. The firm has a market capitalization of $157.71 billion, a price-to-earnings ratio of 7.59, a price-to-earnings-growth ratio of 1.22 and a beta of 0.25.

AT&T (NYSE:T) last posted its earnings results on Wednesday, July 22nd. The technology company reported $0.65 EPS for the quarter, topping analysts’ consensus estimates of $0.59 by $0.06. AT&T had a net margin of 16.94% and a return on equity of 12.86%. The firm had revenue of $31.56 billion during the quarter, compared to analysts’ expectations of $31.80 billion. During the same quarter in the prior year, the business earned $0.54 earnings per share. The business’s revenue for the quarter was up 2.3% compared to the same quarter last year. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS. As a group, sell-side analysts anticipate that AT&T Inc. will post 2.33 EPS for the current fiscal year.

AT&T Announces Dividend

The business also recently disclosed 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 dividend payout ratio is presently 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.