AT&T Inc. (T) Has Analysts Pounding the Table

Analysts at Citigroup upped their rating on shares of AT&T Inc. (NYSE:T) from Neutral to Buy in their opinion released on December 11. JP Morgan analysts bumped their recommendation on T stock from Neutral to Overweight in a separate flash note to investors on December 03. Analysts at MoffettNathanson issued an upgrade from Sell to Neutral for the stock, in a research note that dated back to November 26.

By watching the trading activity of corporate insiders, it will become easier to get a sense of AT&T Inc. (NYSE:T)’s prospects.

AT&T Inc. (T) is expected to jump by 11.76 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $43-month high price target. This represents a whopping 42.01 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $34, which represents a return potential of 12.29 percent when compared to the closing price of the stock of $30.28 on Wednesday, March 13. The lowest price target for the stock is $22 — slightly more than -27.34 percent from T’s current share price.

The shares are currently floating around the first support level of $30.09. Below this, the next support is placed in the zone of $29.89. Till the time, the T stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 47.93 on daily chart, which may remain a cause for concern. If the price breaks below $29.89 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $30.6 mark may result into a pull-back move towards $30.91 level.

T shares dropped -0.35 points or -1.14 percent on Wednesday to $30.28 with a light trade volume of 27.522 million shares. After opening the session at $30.65, the shares went as high as $30.72 and as low as $30.21, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $221 billion and now has 7.3 billion shares outstanding. AT&T Inc. (T) stock has gained 1.92 percent of market value in 21 trading days.

T stock has a trailing 3-year beta of 0.57, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.77 a share in the trailing twelve months. The stock’s value has surged 6.1 percent year to date (YTD) against a decline of -18.95 percent in 12 month’s time. The company’s shares still trade -19.92 percent away from its 1-year high of $37.81 and 12.99 percent up from 52-week low of $26.80. The average consensus rating on the company is 2.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of AT&T Inc. (T) are trading at a P/E ratio of 18.14 times earnings reported for the past 12 months. The industry T operates in has an average P/E of 55.32. Its P/E ratio went as low as 10.27X and as high as 27.17 over the 5-year span. Further, it is sporting a 1.3 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.62. 53.5 percent is the gross profit margin for AT&T Inc. and operating margin sits at 15.3 percent. Along with this, the net profit margin is 11.3 percent.

T will be showing off its Q1 earnings on April 24. Analysts are forecasting revenue to climb 18.7 percent to $45.2B in the next fiscal quarter, while earnings are seen soaring by nearly 2.35 percent to $0.87 per share. History has shown that shares in AT&T Inc. have gone down on 22 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.86 per share, in line with the $0.86, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $48B, worse than the $48.5B analysts expected. Earnings are estimated to increase by 84.5 percent this year, 1.65 percent next year and continue to increase by 4.51 percent annually for the next 5 years.