AT&T (NYSE:T) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.

According to Zacks, “AT&T is gearing up to launch the first standards-based 5G services in multiple U.S. markets by the end of 2018. The company will benefit from its merger with Time Warner as the transaction will reshape the industry dynamics to create a media behemoth. The deal will allow the power packed combination of AT&T’s data and Time Warner’s content to create new online videos. Moreover, AT&T has acquired AlienVault to enhance its line of cybersecurity products designed for small and medium businesses. However, the stock has underperformed the industry in the past year on an average. The company’s wireline division is facing losses in access line due to competitive pressure from voice-over-Internet protocol service providers. AT&T has been actively trying to attract customers with healthy discounts as a counteractive measure against stiff competition that will likely hurt margins.”

Several other brokerages also recently weighed in on T. Bank of America raised AT&T from a “neutral” rating to a “buy” rating and set a $37.00 price target on the stock in a research report on Monday, July 30th. They noted that the move was a valuation call. Credit Suisse Group initiated coverage on AT&T in a research report on Tuesday, July 10th. They set an “underperform” rating and a $29.00 price target on the stock. Morgan Stanley reaffirmed an “overweight” rating and set a $37.00 price target on shares of AT&T in a research report on Wednesday, June 27th. ValuEngine downgraded AT&T from a “sell” rating to a “strong sell” rating in a research report on Saturday, June 2nd. Finally, Oppenheimer raised AT&T from a “market perform” rating to an “outperform” rating and set a $41.00 price target on the stock in a research report on Wednesday, June 13th. Three equities research analysts have rated the stock with a sell rating, ten have issued a hold rating, thirteen have given a buy rating and one has assigned a strong buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus price target of $38.09.

NYSE T opened at $33.35 on Tuesday. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.81 and a current ratio of 0.81. AT&T has a 1 year low of $30.13 and a 1 year high of $39.80. The firm has a market capitalization of $208.17 billion, a P/E ratio of 10.93, a PEG ratio of 2.70 and a beta of 0.40.

AT&T (NYSE:T) last released its earnings results on Tuesday, July 24th. The technology company reported $0.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.85 by $0.06. AT&T had a return on equity of 13.64% and a net margin of 20.12%. The firm had revenue of $38.99 billion for the quarter, compared to the consensus estimate of $38.45 billion. During the same period in the prior year, the firm earned $0.79 EPS. The firm’s revenue was down 2.1% on a year-over-year basis. analysts expect that AT&T will post 3.52 earnings per share for the current fiscal year.

In other news, Director Matthew K. Rose bought 65,500 shares of the stock in a transaction dated Thursday, July 26th. The shares were acquired at an average cost of $30.51 per share, with a total value of $1,998,405.00. Following the purchase, the director now directly owns 81,319 shares in the company, valued at approximately $2,481,042.69. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Piazza Samuel A. Jr. Di bought 7,690 shares of the stock in a transaction dated Wednesday, August 8th. The shares were purchased at an average cost of $32.48 per share, for a total transaction of $249,771.20. Following the completion of the purchase, the director now owns 31,405 shares in the company, valued at $1,020,034.40. The disclosure for this purchase can be found here. Corporate insiders own 0.09% of the company’s stock.

Hedge funds have recently bought and sold shares of the company. HC Financial Advisors Inc. purchased a new position in AT&T in the 4th quarter valued at about $1,136,000. Princeton Capital Management LLC purchased a new position in AT&T in the 4th quarter valued at about $6,131,000. X Square Capital LLC purchased a new position in AT&T in the 4th quarter valued at about $410,000. Obermeyer Wood Investment Counsel Lllp lifted its stake in AT&T by 1.0% in the 4th quarter. Obermeyer Wood Investment Counsel Lllp now owns 729,799 shares of the technology company’s stock valued at $28,375,000 after buying an additional 7,004 shares in the last quarter. Finally, Derby & Company Inc. purchased a new position in AT&T in the 4th quarter valued at about $479,000. 64.57% of the stock is currently owned by institutional investors and hedge funds.

About AT&T

AT&T Inc provides communications and digital entertainment services. The company operates through four segments: Business Solutions, Entertainment Group, Consumer Mobility, and International. The Business Solutions segment offers wireless services, strategic services, legacy voice, data services, wireless equipment, and other services to multinational companies, governmental and wholesale customers, and individual subscribers.

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