Viking Fund Management LLC has increased its stake in AT&T Inc. (NYSE: T) by 9.8% during the third quarter of 2023, as reported in the firm’s recent filing with the Securities and Exchange Commission. The investment firm now holds 425,000 shares of AT&T’s stock, having acquired an additional 38,000 shares in that quarter. This investment represents approximately 1.5% of Viking Fund Management’s total portfolio, positioning AT&T as its 19th largest holding. The value of the holdings in AT&T was recorded at about $12 million at the close of the reporting period.
Other institutional investors have also made moves in AT&T’s stock. For instance, Vanguard Group Inc. increased its holdings by 1.6% in the second quarter, now owning 661,355,210 shares valued at approximately $19.14 billion. State Street Corp followed suit, raising its stake by 2.4% to hold 321,070,509 shares worth around $9.29 billion. Additionally, Kingstone Capital Partners Texas LLC and Norges Bank also acquired significant positions in AT&T, with the latter’s investment valued at approximately $2.23 billion. Overall, institutional investors now control about 57.10% of AT&T’s shares.
Analysts Adjust Price Targets for AT&T
Recent analysis from various financial institutions has led to adjustments in AT&T’s stock price targets. On December 10, 2023, Morgan Stanley reduced its target from $32.00 to $30.00, maintaining an “overweight” rating. Similarly, Barclays lowered its target from $30.00 to $28.00, while The Goldman Sachs Group cut its forecast from $33.00 to $29.00, designating the stock as a “buy.”
Investment sentiment remains mixed; one analyst rated the stock as a “Strong Buy,” while others have distributed ratings among “Buy” and “Hold.” The consensus rating for AT&T stands at a “Moderate Buy” with a price target averaging around $30.36 according to data from MarketBeat.com.
Market Performance and Earnings Report
AT&T shares opened at $24.11 on the most recent trading day, reflecting a slight decline of 0.6%. The company has a market capitalization of $170.95 billion, with a price-to-earnings (P/E) ratio of 7.83 and a PEG ratio of 1.41. Over the past year, the stock has fluctuated between a low of $21.38 and a high of $29.79.
The latest earnings report, released on October 22, 2023, showed that AT&T met analysts’ expectations with earnings per share (EPS) of $0.54. The company generated revenue of $30.71 billion, slightly below the anticipated $30.85 billion. The net margin stood at 17.87%, with a return on equity of 12.72%. Analysts are forecasting an EPS of $2.14 for the current fiscal year.
In addition to these developments, AT&T announced a quarterly dividend of $0.2775 per share, set to be paid on February 2, 2024, to shareholders of record as of January 12, 2024. This dividend represents an annualized yield of 4.6% and reflects a payout ratio of 36.04%.
AT&T continues to navigate a competitive landscape as a global telecommunications company, providing a range of services including wireless, broadband, and network infrastructure. Its ongoing adjustments in investment and strategic positioning highlight both the confidence of institutional investors and the challenges presented by market dynamics.
