Letko Brosseau Reduces AT&T Stake as Analysts Predict Growth

Letko Brosseau & Associates Inc. has reduced its holdings in AT&T Inc. (NYSE: T) by 1.3% during the second quarter of 2023, according to its recent 13F filing with the Securities and Exchange Commission (SEC). Following the sale of 53,975 shares, the firm now owns 4,171,125 shares in the telecommunications giant, which constitutes 2.3% of its investment portfolio, making AT&T its 15th largest holding. As of the latest filing, Letko Brosseau’s stake in AT&T was valued at approximately $120.7 million.

In addition to Letko Brosseau’s adjustments, several major investors have altered their positions in AT&T. Kingstone Capital Partners Texas LLC acquired a new stake valued at approximately $5.27 billion in the second quarter. Furthermore, Nuveen LLC entered the market with a stake worth $1.07 billion during the first quarter. GQG Partners LLC increased its holdings in AT&T by 17.7%, owning 113,957,259 shares valued at about $3.22 billion after adding 17,177,874 shares in the last quarter.

The Ontario Teachers Pension Plan Board significantly boosted its stake in AT&T by 30,527.5%, now holding 11,959,440 shares valued at $338.2 million, following an acquisition of 11,920,392 shares. Wellington Management Group LLP also increased its position by 350.4%, owning 11,363,940 shares worth $321.4 million after acquiring an additional 8,841,126 shares. Institutional investors collectively own 57.1% of AT&T’s stock.

Analysts Optimistic About AT&T’s Future

Wall Street analysts have expressed positive sentiments regarding AT&T’s growth potential. Raymond James Financial reaffirmed a “strong-buy” rating, raising its target price from $31.00 to $33.00, as of September 18, 2023. The Goldman Sachs Group initiated coverage on AT&T with a “buy” rating and a target price of $32.00. Scotiabank has set a target price of $30.25 while assigning a “sector perform” rating.

Sanford C. Bernstein also increased its target on AT&T from $31.00 to $32.00 and rated the stock as “outperform.” Weiss Ratings maintained a “buy (b)” rating, indicating strong confidence in the company. Currently, one analyst rates the stock as a Strong Buy, while seventeen have given it a Buy rating, and eight analysts have assigned a Hold rating. The average rating stands at “Moderate Buy” with a price target of $30.64 according to MarketBeat.

AT&T’s Stock Performance and Financial Results

As of the latest trading session, AT&T shares opened at $25.58. The company boasts a market capitalization of $181.31 billion, with a price-to-earnings (P/E) ratio of 8.30 and a beta of 0.40. Over the past year, AT&T’s stock has fluctuated between a low of $21.38 and a high of $29.79. The 50-day moving average price stands at $26.75, while the 200-day moving average price is $27.56.

AT&T announced its quarterly earnings on October 22, 2023, reporting earnings per share (EPS) of $0.54, matching analysts’ expectations. The company generated revenue of $30.71 billion, which slightly fell short of the consensus estimate of $30.85 billion. AT&T recorded a net margin of 17.87% and a return on equity of 12.72%. Revenue for the quarter increased by 1.7% compared to the same period last year, although EPS decreased from $0.60 in the prior year.

Equity analysts project that AT&T will post an EPS of $2.14 for the current fiscal year.

The company has also declared a quarterly dividend of $0.2775, which was paid on November 3, 2023, to shareholders of record as of October 10, 2023. This dividend represents an annualized payout of $1.11 and yields 4.3%, with a payout ratio of 36.04%.

AT&T Inc. is a holding company that provides telecommunications and technology services, operating primarily through its Communications and Latin America segments. It offers a range of services including wireless, wireline telecommunications, and broadband solutions to businesses and consumers in the U.S. and globally.