AT&T Share Price Falls 4.4% Amid Three-Year Earnings Decline

AT&T's stock has fallen 4.4% over the past week, despite a 24% increase over the past year. The company's three-year decline in earnings might be taking its toll on shareholders. The share price return of 81% over three years lags the market return in the same period. However, the dividend yield is not a significant factor in the share price movement.

AT&T's stock has experienced a notable decline of 4.4% over the past week, despite a robust 24% increase over the past year. The company's stock has shown a three-year decline in earnings, which could be a contributing factor to the recent drop. However, the stock's performance over the past three years (81% return) still lags behind the broader market's return during the same period. The dividend yield, currently at 4.12%, does not appear to be a significant driver of the share price movement St. Louis Financial Sells $3.3 Million in AT&T Stock With Next Earnings on Deck^[2].

Analysts have expressed concerns about AT&T's financial health. Kannan Venkateshwar of Barclays downgraded the stock to "Equal Weight" from "Overweight," citing potential pressure on margins due to increased phone upgrades and elevated churn rates AT&T Stock Gets a Downgrade. Why ‘Free’ iPhones Are Partly to Blame.^[1]. The analyst noted that new software features, including AI capabilities, and hardware innovations like the iPhone Air and potential foldable models, could incentivize more frequent upgrades, putting pressure on telecom operators' margins.

Institutional investors have also been active in their holdings of AT&T stock. St. Louis Financial Planners Asset Management sold 116,126 shares of AT&T in the third quarter, representing a significant reduction in its stake St. Louis Financial Sells $3.3 Million in AT&T Stock With Next Earnings on Deck^[2]. Meanwhile, Vigilare Wealth Management bought a new position in AT&T shares, adding 10,865 shares valued at approximately $314,000 in the second quarter Vigilare Wealth Management Makes New Investment in AT&T Inc. $T^[3]. Several other institutional investors, including Stone House Investment Management LLC, O Brien Wealth Partners LLC, Hager Investment Management Services LLC, IMA Advisory Services Inc., and Core Alternative Capital, have also made recent adjustments to their AT&T holdings Vigilare Wealth Management Makes New Investment in AT&T Inc. $T^[3].

Despite the recent sell-off, AT&T's fundamentals remain strong. The company reported a net income of $12.76 billion and revenue of $123.98 billion for the trailing 12 months, with a dividend yield of 4.12%. Analysts like Raymond James have set a new price target of $33.00, indicating a positive outlook for the stock Vigilare Wealth Management Makes New Investment in AT&T Inc. $T^[3]. The upcoming earnings report, scheduled for the end of the month, will be crucial for investors to assess the company's performance and future prospects.