AT&T (NYSE:T) Stock Jumps 1.9% – Still a Buy?

AT&T Inc. (NYSE:T)’s stock price shot up 1.9% during mid-day trading on Thursday. The company traded as high as $23.84 and last traded at $23.4850. 44,547,088 shares changed hands during mid-day trading, a decline of 8% from the average daily volume of 48,559,848 shares. The stock had previously closed at $23.05.

AT&T News Summary

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

• Positive Sentiment: Mexico exit supports U.S. investment: AT&T agreed to sell its Mexican wireless operations to Grupo Televisa and Fintech Holdings for approximately $2 billion. Management plans to redirect resources toward U.S. fiber and 5G, while the transaction should simplify AT&T’s international footprint and provide additional financial flexibility. AT&T Agrees To Exit Its Mexican Wireless Business
• Positive Sentiment: Fiber expansion remains a growth priority: AT&T’s $5.75 billion acquisition of Lumen Technologies’ consumer fiber business adds more than 1 million subscribers and reaches over 4 million locations. The deal could accelerate broadband expansion and strengthen AT&T’s ability to bundle fiber with wireless services. AT&T Does Buying Fiber Create More Value Than Building It?
• Positive Sentiment: AT&T expanded its customer-service guarantee, promising access to an expert within five minutes or a callback, with additional support for customers combining fiber and wireless services. The initiative could aid customer retention, although its direct financial impact is uncertain. AT&T Expands America’s Best Guarantee
• Neutral Sentiment: Construction of AT&T’s planned $1 billion-plus Plano headquarters campus is expected to begin December 1, with completion targeted for March 2029. The project reinforces its corporate presence but represents a substantial long-term capital commitment. AT&T Plano Headquarters Construction Eyed for December 1 Start
• Neutral Sentiment: Investors are awaiting third-quarter results on October 21. Beyond revenue and EPS, attention will likely center on wireless subscribers, broadband growth, cash flow, and management’s outlook. Countdown to AT&T Q3 Earnings
• Negative Sentiment: Bernstein downgraded AT&T to Market Perform amid concerns that SpaceX’s satellite connectivity could increase competitive pressure on traditional wireless operators. The downgrade adds near-term selling pressure ahead of earnings. AT&T Stock Downgraded Over SpaceX

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. Morgan Stanley boosted their target price on shares of AT&T from $27.00 to $28.00 and gave the stock an “overweight” rating in a research report on Monday, September 28th. Scotiabank lowered their price target on AT&T from $27.50 to $26.50 and set a “sector perform” rating on the stock in a research report on Friday, October 9th. Wall Street Zen upgraded AT&T from a “sell” rating to a “hold” rating in a research note on Saturday, June 20th. The Goldman Sachs Group set a $30.00 price objective on AT&T in a research note on Wednesday, July 22nd. Finally, Wells Fargo & Company boosted their price objective on AT&T from $18.00 to $20.00 and gave the stock an “underweight” rating in a research report on Thursday, July 23rd. Eleven research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $29.05.

AT&T Stock Performance

The firm’s 50 day moving average price is $24.98 and its 200-day moving average price is $24.44. The firm has a market cap of $160.65 billion, a price-to-earnings ratio of 7.76, a P/E/G ratio of 1.14 and a beta of 0.25. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.97 and a quick ratio of 0.93.

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

AT&T Dividend Announcement

The business also recently announced 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. This represents a $1.11 annualized dividend and a dividend yield of 4.7%. The ex-dividend date is Friday, October 9th. AT&T’s dividend payout ratio (DPR) is presently 36.75%.

Hedge Funds Weigh In On AT&T

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Essex Bank increased its position in shares of AT&T by 2.5% during the first quarter. Essex Bank now owns 15,908 shares of the technology company’s stock valued at $461,000 after purchasing an additional 385 shares during the period. Bar Harbor Wealth Management lifted its position in AT&T by 1.1% in the first quarter. Bar Harbor Wealth Management now owns 35,102 shares of the technology company’s stock worth $1,018,000 after purchasing an additional 386 shares during the period. Hibernia Wealth Partners LLC lifted its position in AT&T by 4.5% in the first quarter. Hibernia Wealth Partners LLC now owns 9,105 shares of the technology company’s stock worth $264,000 after purchasing an additional 392 shares during the period. M.E. Allison & CO. Inc. lifted its position in AT&T by 0.5% in the second quarter. M.E. Allison & CO. Inc. now owns 76,978 shares of the technology company’s stock worth $1,593,000 after purchasing an additional 397 shares during the period. Finally, Accredited Investors Inc. boosted its stake in AT&T by 3.5% during the first quarter. Accredited Investors Inc. now owns 11,901 shares of the technology company’s stock worth $345,000 after buying an additional 400 shares in the last quarter. 57.10% of the stock is currently owned by institutional investors.

About AT&T

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.