Arvest Investments Inc. has acquired a 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 giant, amounting to approximately $633,000. This acquisition reflects a broader trend, as several hedge funds and institutional investors have been active in trading AT&T shares.
Denali Advisors LLC increased its holdings in AT&T by 5.9% in the second quarter, now owning 401,037 shares valued at around $11.6 million after acquiring an additional 22,394 shares. Similarly, Tredje AP fonden raised its stake by 1.8%, bringing its total to 1,221,395 shares worth approximately $35.3 million. CHURCHILL MANAGEMENT Corp and Sentry Investment Management LLC also expanded their investments, indicating robust interest in AT&T’s stock. Hedge funds and institutional investors currently own 57.1% of the company’s shares.
Investor sentiment surrounding AT&T has been notably positive. The company recently reported anticipated revenue gains of approximately $1.3 billion due to price hikes on wireless and internet plans, which are expected to bolster cash flow and support dividend coverage. Additionally, analysts have pointed to AT&T’s potential for secular growth fueled by advancements in 5G technology, fiber optics, and machine-to-machine communications.
Despite these positive indicators, some challenges remain. Goldman Sachs has revised its price target for AT&T shares from $33 to $29, while maintaining a Buy rating. Such adjustments can impact investor momentum, particularly among those who track price targets closely. Furthermore, two lawmakers have expressed concerns regarding EchoStar’s agreements to sell spectrum rights to AT&T and SpaceX, which could pose regulatory hurdles and affect AT&T’s expansion plans.
AT&T’s stock opened at $24.11 on Monday, with a 12-month low of $21.38 and a high of $29.79. The company has a market capitalization of $170.95 billion and a price-to-earnings (P/E) ratio of 7.83. Recent quarterly earnings, announced on October 22, revealed earnings per share (EPS) of $0.54, matching analyst expectations.
In addition to its financial performance, AT&T has declared a quarterly dividend of $0.2775, which will be paid on February 2, 2024, to stockholders of record as of January 12, 2024. This represents an annualized dividend of $1.11 and a yield of 4.6%, with a dividend payout ratio currently at 36.04%.
Several research analysts have weighed in on the stock, with Loop Capital setting a price target of $29 and Royal Bank of Canada adjusting its target down to $30. Overall, AT&T holds an average rating of “Moderate Buy” and analysts forecast the company will achieve an EPS of $2.14 this year.
AT&T Inc. is a prominent global telecommunications company, providing a range of services including consumer and business wireless, broadband, and digital entertainment. The company operates under the AT&T Mobility brand and delivers high-speed internet through fiber networks. As it navigates market challenges and opportunities, AT&T remains a focal point for both investors and analysts alike.
