Letko Brosseau Reduces AT&T Holdings by 53,975 Shares

Letko Brosseau & Associates Inc. has reduced its stake in AT&T Inc. (NYSE: T) by 1.3%, selling 53,975 shares during the second quarter of 2023. According to its most recent 13F filing with the Securities and Exchange Commission (SEC), the firm now holds 4,171,125 shares of AT&T, which represents 2.3% of its investment portfolio. This positions AT&T as the 15th largest holding for the investment firm, valued at approximately $120.7 million.

The reduction in Letko Brosseau’s holdings comes amid a broader trend among institutional investors adjusting their positions in AT&T. For example, Kingstone Capital Partners Texas LLC acquired a new stake valued at around $5.27 billion during the same quarter. In addition, Nuveen LLC also entered AT&T with a new stake worth $1.07 billion in the first quarter of 2023.

GQG Partners LLC has increased its investment in AT&T by 17.7%, now owning 113,957,259 shares valued at $3.22 billion, following the purchase of an additional 17,177,874 shares. Similarly, the Ontario Teachers Pension Plan Board significantly boosted its stake by an astonishing 30,527.5% in the first quarter, acquiring 11,959,440 shares valued at $338.21 million after purchasing an additional 11,920,392 shares. Wellington Management Group LLP also increased its holdings by 350.4%, resulting in ownership of 11,363,940 shares worth approximately $321.37 million. Currently, institutional investors collectively own about 57.1% of AT&T’s stock.

Analysts Provide Positive Outlook

Wall Street analysts have recently expressed optimistic views on AT&T shares. Raymond James Financial reiterated a “strong-buy” rating and raised its price target for the stock from $31.00 to $33.00 in a report dated September 18, 2023. The Goldman Sachs Group commenced coverage of AT&T on September 2, 2023, issuing a “buy” rating with a price objective of $32.00. Scotiabank established a target price of $30.25 and assigned a “sector perform” rating on October 6, 2023.

Sanford C. Bernstein also increased its price target from $31.00 to $32.00 on September 4, 2023, maintaining an “outperform” rating. Weiss Ratings reiterated a “buy (b)” rating on AT&T shares in a note dated October 8, 2023. Currently, the stock holds an average rating of “Moderate Buy” with a price target of $30.64, according to data from MarketBeat.

Current Performance and Dividend Announcement

As of October 22, 2023, AT&T shares opened at $25.58. The company has a market capitalization of $181.31 billion, a price-to-earnings (P/E) ratio of 8.30, and a beta of 0.40. Over the past year, the stock has fluctuated between a low of $21.38 and a high of $29.79. The current ratio stands at 1.01, with a quick ratio of 0.96 and a debt-to-equity ratio of 1.01.

AT&T recently announced its quarterly earnings, reporting earnings per share (EPS) of $0.54, matching analysts’ expectations. The company generated revenue of $30.71 billion for the quarter, slightly below the consensus estimate of $30.85 billion. The net margin was 17.87%, with a return on equity of 12.72%, indicating a 1.7% year-over-year increase in revenue.

In addition, AT&T declared a quarterly dividend of $0.2775 per share, which was paid on November 3, 2023, to shareholders of record from October 10, 2023. This annualizes to $1.11 per share, reflecting a yield of 4.3% and a dividend payout ratio of 36.04%.

AT&T Inc. operates as a holding company providing a range of telecommunications and technology services through its Communications and Latin America segments. The Communications segment serves both businesses and consumers, offering wireless, wireline, and broadband services across the United States and internationally.