Zacks Investment Research Lowers AT&T (NYSE:T) to Strong Sell

AT&T (NYSE:TGet Rating) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued on Thursday, Zacks.com reports. They presently have a $17.00 target price on the technology company’s stock. Zacks Investment Research‘s price objective indicates a potential downside of 12.91% from the stock’s previous close.

According to Zacks, “AT&T is struggling with a steady decline in its legacy telephony Internet and wireline services. High-speed Internet revenues are also contracting due to a decline in the legacy digital subscriber line. As the company tries to woo customers with discounts, its margins tend to fall. AT&T must build upon its recent market momentum to improve its value proposition across all of its customer segments. Spectrum crisis in a saturated wireless market and ongoing cord-cutting are other challenges. The company has a huge debt burden and appears to be under pressure to meet its financial obligations. Intense competition and pricing pressure in the wireless market affect AT&T’s bottom-line growth. However, the company is expected to benefit from investments to deliver 5G capabilities for new use cases to its expanding customer base.”

Other equities analysts have also issued reports about the company. Wolfe Research reduced their price objective on AT&T from $29.00 to $27.00 and set a “peer perform” rating for the company in a report on Thursday, January 27th. UBS Group cut their price target on AT&T from $34.00 to $32.00 and set a “buy” rating for the company in a report on Thursday, January 27th. Citigroup cut their price target on AT&T from $28.00 to $22.00 and set a “buy” rating for the company in a report on Tuesday, April 12th. Tigress Financial raised their price target on AT&T from $36.00 to $41.00 in a report on Thursday, January 20th. Finally, Moffett Nathanson began coverage on AT&T in a report on Tuesday, April 5th. They issued a $19.00 price target for the company. Two analysts have rated the stock with a sell rating, thirteen have given a hold rating and nine have issued a buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $26.34.

Shares of NYSE T opened at $19.52 on Thursday. The stock has a fifty day simple moving average of $22.80 and a two-hundred day simple moving average of $24.20. AT&T has a 1-year low of $16.62 and a 1-year high of $25.57. The firm has a market cap of $139.43 billion, a price-to-earnings ratio of 7.07, a price-to-earnings-growth ratio of 1.83 and a beta of 0.68. The company has a current ratio of 0.70, a quick ratio of 0.66 and a debt-to-equity ratio of 0.83.

AT&T (NYSE:TGet Rating) last announced its quarterly earnings data on Thursday, April 21st. The technology company reported $0.77 earnings per share for the quarter, beating the consensus estimate of $0.61 by $0.16. AT&T had a return on equity of 13.50% and a net margin of 11.89%. The business had revenue of $38.10 billion during the quarter, compared to analyst estimates of $38.29 billion. During the same period in the prior year, the company earned $0.86 earnings per share. AT&T’s revenue was down 13.2% compared to the same quarter last year. Analysts forecast that AT&T will post 2.99 EPS for the current year.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Allworth Financial LP grew its stake in shares of AT&T by 7.8% in the first quarter. Allworth Financial LP now owns 584,681 shares of the technology company’s stock worth $13,816,000 after purchasing an additional 42,271 shares during the last quarter. Bank of The West boosted its position in AT&T by 17.9% during the 1st quarter. Bank of The West now owns 78,655 shares of the technology company’s stock valued at $1,859,000 after acquiring an additional 11,926 shares in the last quarter. Truist Financial Corp boosted its position in AT&T by 3.2% during the 1st quarter. Truist Financial Corp now owns 3,677,890 shares of the technology company’s stock valued at $86,907,000 after acquiring an additional 114,843 shares in the last quarter. UMB Bank N A MO boosted its position in AT&T by 67.0% during the 1st quarter. UMB Bank N A MO now owns 925,383 shares of the technology company’s stock valued at $21,867,000 after acquiring an additional 371,176 shares in the last quarter. Finally, Wright Investors Service Inc. boosted its position in AT&T by 80.0% during the 1st quarter. Wright Investors Service Inc. now owns 332,832 shares of the technology company’s stock valued at $7,865,000 after acquiring an additional 147,976 shares in the last quarter. Hedge funds and other institutional investors own 51.63% of the company’s stock.

AT&T Company Profile (Get Rating)

AT&T Inc provides telecommunications, media, and technology services worldwide. The company operates through Communications, WarnerMedia, and Latin America segments. The Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, and carrying cases and hands-free devices through its own company-owned stores, agents, and third-party retail stores.

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