Investors may want to keep an eye on AT&T (T).
After pushing back through its 200-day moving average, we’d like to see the telecom eventually refill its bearish gap around $19. Helping, Director Stephen J. Luczo just bought 62,500 shares of AT&T for around $971,875, which could fuel further upside.
Even better, earnings haven’t been too shabby. In its most recent quarter, AT&T revenue jumped about 1% year over year to $30.4 billion, with adjusted EPS of 64 cents. Meanwhile, the Street was looking for $30.2 billion and adjusted EPS of about 62 cents a share.
And, as noted by Barron’s, “AT&T’s net additions of mobility postpaid phone subscribers—people who receive a monthly bill for service—hit 468,000 in the quarter ended in September. It was the first time AT&T posted growth in subscribers after four straight quarters of declines.” AT&T also expects to see $16.5 billion in free cash flow for the full year 2023. That’s up just slightly from the $16 billion it saw last year.
Analysts at Citi like the stock here, too.
In fact, the firm just raised its price target to $18 from $17, with a buy rating. The firm also noted that, “AT&T reported strong Q3 results, with better than anticipated volumes from postpaid phones and fiber net adds and EBITDA growth of 4.6%, the analyst tells investors in a research note. The firm updated estimates to reflect stronger wireless EBITDA growth entering into 2024, consumer wireline retaining room for further improvements in the cost structure, and greater headwinds on business wireline,” as quoted by TheFly.com.
Plus, while we wait for AT&T to recover, we can collect its dividend yield of about 6.85%.
Sincerely,
Ian Cooper
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