AT&T's stock selloff comes amid growing investor concerns over competition with cable companies, and over ramped up spending by telecommunications companies to build out their fiber networks.
Why is AT&T stock so low?
Dec 01, 2021 · Shares of AT&T ( T 0.62% ) fell 4.4% on Tuesday after comments by one of the telecom's key executives sparked concerns of slowing growth among investors.
Is AT&T a safe investment?
Feb 01, 2022 · Shares of AT&T (NYSE: T) fell on Tuesday after the telecom titan said it would cut its cash payout to shareholders following the planned spinoff of its WarnerMedia business. As of 2:40 p.m. ET, AT ...
Is AT&T reducing its dividend?
Jan 26, 2022 · Shares of telecommunications giant AT&T ( T 0.62% ) tumbled in Wednesday afternoon trading, despite the company reporting an earnings beat in the morning. Ahead of the fourth-quarter release,...
Is at T a good investment?
Apr 01, 2022 · AT&T stock was down over 16% in 2021. In 2022, shares were trading higher initially but sold off heavily after a negative earnings report. On the positive side, the stock maintains a high 4.7%...
Is AT&T good stock to buy right now?
Despite its 4.7% dividend yield, AT&T stock is not one to be added to your portfolio right now. Investors will need to wait for the stock to form a better chart pattern and for market conditions to improve. Investors can check IBD stock lists and other IBD content to find the best stocks to buy or watch.Apr 1, 2022
What is the prediction for AT&T stock?
Stock Price Forecast The 20 analysts offering 12-month price forecasts for AT&T Inc have a median target of 21.14, with a high estimate of 29.00 and a low estimate of 10.57. The median estimate represents a +8.88% increase from the last price of 19.42.
Is AT&T stock undervalued?
At its current payout, AT&T is the fourth highest-yielding stock under our U.S. coverage and one of the most undervalued across the large-cap Morningstar Category. The stock trades at a substantial 27% discount to our $36 fair value estimate and is currently rated 4 stars.Jan 13, 2022
Is AT&T a buy hold or sell?
The last rating was given by Wells Fargo on Apr 14, 2022. The price target was set to 19.54+0.64. Over the last 30 days, this security got 0 buy, 5 sell, and 0 hold ratings....Predicted Opening Price for AT&T Inc of Wednesday, April 20, 2022.Fair opening price April 20, 2022Current price$19.51$19.50 (Undervalued)
What company owns AT&T?
Bell SystemAT&TBell Telephone CompanyAT&T Corporation/Parent organizations
Which stock has the highest dividend?
Dividend stocks can be a great choice for investors looking for regular income....25 high-dividend stocks.SymbolCompany NameDividend YieldCVXChevron Corp3.48%PFGPrincipal Financial Group Inc3.48%DLRDigital Realty Trust Inc3.44%HASHasbro Inc.3.41%20 more rows•Apr 1, 2022
Is AT&T a safe stock?
AT&T's Poor Dividend Safety Grade Although AT&T has an attractive dividend yield and dividend consistency, our Seeking Alpha “Quantamental” analysis strives to identify stocks with an excellent dividend safety rating. Poor dividend safety ratings are at the most significant risk of experiencing dividend cuts.Feb 2, 2022
Is AT&T going to cut their dividend?
AT&T on Tuesday cut its annual dividend nearly in half to $1.11 per share, as the company announced it will spin off WarnerMedia in a $43 billion deal that will merge its media properties with Discovery.Feb 4, 2022
What will happen to AT&T stock after merger?
AT&T shareholders do not need to take any action. Their WarnerMedia Spinco shares will automatically be exchanged for WBD common stock in the merger, which will occur on the closing date of the transaction.Mar 25, 2022
Why is AT&T PE ratio so high?
Generally, our preference is to limit the use of the price-to-earnings ratio to establishing what the market thinks about the overall health of a company. We've established that AT&T maintains its high P/E on the strength of its forecast growth being higher than the wider market, as expected.Dec 23, 2021
Is Verizon a good stock to own?
A reliable dividend One of Verizon's primary appeals is its dividend, which sports an alluring yield of 4.93% at the time of this writing. Verizon has demonstrated that it's among the most reliable dividend stocks around.Jan 5, 2022
Is Telus a good stock to buy?
Telus Corp was recommended as a Top Pick by on . Read the latest stock experts ratings for Telus Corp.
What happened
Shares of AT&T (NYSE: T) fell on Tuesday after the telecom titan said it would cut its cash payout to shareholders following the planned spinoff of its WarnerMedia business.
So what
AT&T will merge its media operations, including its fast-growing HBO Max streaming service, with Discovery (NASDAQ: DISCA) (NASDAQ: DISC.B) (NASDAQ: DISCK). The $43 billion transaction will create a powerful competitor to Netflix and Disney in the streaming arena.
Now what
The spinoff is an acknowledgment that AT&T's $85 billion purchase of Time Warner in 2018 has failed to deliver the profit growth management expected at the time. Yet the deal will help to make AT&T a more streamlined company.
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AT&T beat earnings in 2021. It might not be so lucky in 2022
I like things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well.
What happened
Shares of telecommunications giant AT&T ( NYSE:T) tumbled in Wednesday afternoon trading, despite the company reporting an earnings beat in the morning.
So what
While it's true that the company "beat earnings," not all the news in the report was as good. For one thing, while revenue exceeded expectations, it was still down 10% year over year. Pro forma earnings, meanwhile, were ahead of expectations -- but only up 4% year over year.
Now what
All that being said, AT&T did report $26.8 billion in free cash flow generated for the year. Even at a hefty $368 billion enterprise value, that works out to an enterprise-value-to-free-cash-flow ratio of only 14. With a dividend that yields a generous 7.9% at current share prices, I have to say that valuation sounds attractive ...
Is AT&T stock down?
AT&T stock was down over 26% in 2020, even after recovering nearly 30% from its lows of the coronavirus bear market. So far in 2021, share have traded down 2%. On the positive side, the stock maintains a high 7.4% annualized dividend yield in a very low interest rate environment.
Is the stock market in an uptrend?
Currently, the stock market is in an uptrend which means it's a great time to identify top stock contenders for your portfolio and initiate new positions. Investors should seek out leading stocks in leading industry groups that are outperforming the market.
How much revenue will AT&T generate in 2023?
It's forecast to generate $52 billion in annual revenue and $14 billion in earnings before interest, taxes, depreciation, and amortization ( EBITDA) by 2023. AT&T's stock sold off after rising earlier in the day. Image source: Getty Images.
How much of AT&T will be owned by Discovery?
Discovery shareholders would own the remaining 29%.
What is the merger between Discovery and WarnerMedia?
The merger would allow WarnerMedia and Discovery to accelerate their streaming initiatives centered on popular platforms HBO Max and discovery+. Management also expects the combination to create at least $3 billion in annual cost savings.
Finding the New Dividend Yield for T Stock
Right now, AT&T has a very high dividend yield. At $24.99 per share, and given its annual $2.08 dividend payment (paid quarterly), the yield is 8.32%.
Calculating The New Dividend Yield
Moreover, don’t forget the spin-off of the WBD stock will automatically reduce the T stock price. With that in mind, here is what actually happens. The company will declare and ex-date for the spin-off. On that date, the value of T stock will be “marked down” by market makers by the amount of the value of spin-off.
What To Do With T Stock
The question remains then whether $20.23 is still too high. For example, with a 6% dividend yield, the stock has to trade at $19.17 per share. If we add $4.76 to that price, this implies that T stock should be at $23.93 per share.
