Arvest Investments Inc. has acquired a new stake in AT&T Inc. (NYSE: T) during the third quarter, according to a recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 22,413 shares of the telecommunications company, valued at approximately $633,000. This acquisition reflects the growing interest from institutional investors in AT&T amidst a volatile market environment.
Several other institutional investors have also adjusted their holdings in AT&T. Denali Advisors LLC increased its stake by 5.9% in the second quarter, now owning 401,037 shares valued at $11.6 million. Similarly, Tredje AP fonden raised its stake by 1.8%, bringing its total to 1,221,395 shares worth about $35.3 million. CHURCHILL MANAGEMENT Corp increased its holdings by 1.5%, owning 324,104 shares valued at $9.38 million. Kickstand Ventures LLC made a new investment of approximately $489,000, while Sentry Investment Management LLC expanded its stake by an impressive 153.2%, now owning 22,095 shares valued at $625,000. Collectively, institutional investors hold 57.10% of AT&T’s stock.
Market analysts have expressed mixed sentiments regarding AT&T’s recent performance. The company recently gained approximately $1.3 billion in annual revenue due to price hikes on its wireless and internet plans, providing a positive cash flow boost that supports dividend coverage and debt reduction. Observers note that AT&T is well-positioned for growth driven by advancements in 5G technology, fiber networks, and increased demand for machine-to-machine connectivity and artificial intelligence applications.
However, not all news has been favorable. Goldman Sachs recently downgraded its price target for AT&T from $33 to $29, while maintaining a “Buy” rating. This adjustment could temper momentum among investors who closely monitor target changes. Additionally, regulatory concerns have emerged, with two lawmakers raising issues regarding EchoStar’s spectrum sale agreements with AT&T and SpaceX, potentially affecting AT&T’s spectrum buildout plans.
AT&T’s stock performance reflects broader market trends. Opening at $24.11 on Monday, AT&T has experienced a 12-month low of $21.38 and a high of $29.79. The company’s market capitalization stands at $170.95 billion, with a price-to-earnings ratio of 7.83 and a beta of 0.38.
In its latest quarterly earnings report on October 22, 2023, AT&T reported earnings per share (EPS) of $0.54, aligning with analysts’ expectations. The company achieved a revenue of $30.71 billion, slightly below the projected $30.85 billion, but still reflecting a year-over-year increase of 1.7%. Analysts anticipate that AT&T will post an EPS of $2.14 for the current year.
AT&T recently announced a quarterly dividend, set to be paid on February 2, 2024. Shareholders of record on January 12, 2024 will receive a dividend of $0.2775, yielding an annualized dividend of $1.11 and a dividend yield of 4.6%. The company’s dividend payout ratio currently stands at 36.04%.
As various analysts weigh in on AT&T’s stock, Loop Capital set a price target of $29.00, while Sanford C. Bernstein raised its target from $31.00 to $32.00, maintaining an “outperform” rating. Royal Bank of Canada adjusted its price objective from $31.00 to $30.00, also rating the stock as “outperform.” Meanwhile, Raymond James Financial reaffirmed a “strong-buy” rating with a target of $33.00, an increase from a previous target of $31.00.
With a diverse portfolio encompassing both wired and wireless services, AT&T remains a key player in the global telecommunications landscape, providing a wide range of communication and digital entertainment services to both consumers and businesses.
