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In a remarkable display of resilience, AT&T stock has reached a 52-week high, climbing to a price level of $23.3. This peak reflects a significant turnaround for the telecommunications giant, which has seen its stock price surge by 43.18% over the past year. Investors have rallied behind AT&T, propelling the stock to new heights as the company navigates through a dynamic and competitive industry landscape. The 52-week high milestone is a testament to AT&T's strategic initiatives and its ability to adapt and thrive amidst market fluctuations.
In other recent news, UScellular has agreed to sell part of its spectrum licenses to AT&T for $1.018 billion. The transaction is part of UScellular's strategy to monetize spectrum assets not included in its proposed sale to T-Mobile. The deal with AT&T involves the sale of 1,250 million MHz-Pops of 3.45 GHz and 331 million MHz-Pops of 700 MHz B/C block licenses.
In parallel, AT&T has entered into a $1 billion multi-year agreement with Corning (NYSE:GLW) to purchase fiber, cable, and connectivity solutions. This move is part of AT&T's strategy to expand its high-speed internet offerings and control deployment costs. The company plans to surpass 30 million fiber passings by the end of 2025.
AT&T's third-quarter 2024 earnings report showed total revenues of $29 billion and capital expenditures rising to $5.3 billion. The company added 403,000 postpaid phone subscribers and noted a 6% EBITDA growth in its Mobility segment.
Analyst firms TD Cowen and Oppenheimer have adjusted their price targets for AT&T. TD Cowen raised its target to $26.00, maintaining a Hold rating, while Oppenheimer raised its price target to $24, maintaining an Outperform rating. Both firms cited potential challenges in achieving free cash flow growth due to uncertainties surrounding the DIRECTV stream service.
InvestingPro Insights
AT&T's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's stock is indeed trading near its 52-week high, with the current price at 99.53% of its peak. This corroborates the article's mention of AT&T reaching a new 52-week high of $23.3.
InvestingPro data reveals that AT&T has demonstrated strong returns, with a 51.84% price total return over the past year, slightly higher than the 43.18% mentioned in the article. The stock's momentum is further evidenced by its 36.16% return over the last six months.
For income-focused investors, AT&T offers an attractive dividend yield of 4.79%, and an InvestingPro Tip notes that the company has maintained dividend payments for 41 consecutive years, underscoring its commitment to shareholder returns.
Despite the recent stock price surge, AT&T's valuation remains interesting. With a P/E ratio of 20.38 and an adjusted P/E ratio of 12.97 for the last twelve months as of Q3 2024, the stock may still offer value. An InvestingPro Tip suggests that AT&T is trading at a low P/E ratio relative to near-term earnings growth, which could indicate further upside potential.
These insights complement the article's narrative of AT&T's resilience and strategic success. Investors seeking more comprehensive analysis can find 13 additional InvestingPro Tips for AT&T, offering a deeper understanding of the company's financial health and market position.
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