AT&T (T) Stock Rallies 1.89% on Analyst Upgrades, Strong Earnings and Institutional Buys

Shares of AT&T (T) climbed to a new peak since September 2025, with an intraday gain of 0.71%, extending a two-day rally that pushed the stock 1.89% higher. The recent momentum reflects a combination of analyst optimism, robust earnings, and strategic institutional interest in the telecommunications giant.

Analyst upgrades have played a pivotal role in bolstering investor confidence. Multiple Wall Street firms, including Sanford C. Bernstein, Citigroup, and UBS Group, raised price targets or maintained bullish ratings in late August and July 2025. These actions underscored confidence in AT&T’s dividend yield, earnings trajectory, and focus on wireless and broadband services. Despite a lone "hold" rating from HSBC, the overall analyst consensus remains tilted toward a "Moderate Buy," with an average target price of $30.55.

Financial performance further justified the stock’s ascent. AT&T reported second-quarter earnings of $0.54 per share, exceeding expectations, while revenue surged to $30.85 billion, a 3.4% year-over-year increase. The company’s strong return on equity (13.36%) and net margin (10.29%) highlighted operational efficiency, supporting its valuation metrics, including a 16.79 P/E ratio. Analysts now project $2.14 in earnings for the current fiscal year, reinforcing growth expectations.

Institutional investors have also deepened their exposure to AT&T, signaling long-term conviction. Entities such as Kingstone Capital Partners Texas LLC and Norges Bank added significant stakes in Q2 2025, while UBS Asset Management increased its position in late 2024. These moves reflect institutional recognition of AT&T’s stable cash flows and strategic pivot toward core telecom operations, including the divestiture of its DirecTV stake to reduce debt.

Options market activity in late August and early September revealed mixed but predominantly bullish sentiment. Large call sweeps and put trades indicated positioning for a price range of $15–$40, aligning with AT&T’s recent 52-week high of $29.69. The stock’s low beta of 0.44, coupled with a 3.8% dividend yield, further attracted income-focused investors seeking defensive plays amid market volatility.

Strategic governance improvements, including the appointment of Kelly Grier to the board in late August, added to the positive narrative. The company’s debt management, reflected in a 1.01 debt-to-equity ratio, also reinforced its financial prudence. With 73 million postpaid wireless customers and a market cap of $211.33 billion, AT&T remains a key player in the U.S. telecom sector, navigating competitive pressures while prioritizing operational efficiency and shareholder returns.