How To Buy At T Stock __LINK__
Investors looking for a buying opportunity in stocks may be considering AT&T T and Verizon VZ stock because they both trade for under $40 per share. But price per share alone is hardly a good reason to buy a stock, even of a well-known wireless carrier.
how to buy at t stock
In terms of valuation from a price-to-earnings perspective, AT&T and Verizon stocks are more attractive vs. TMUS. Verizon appears to have a slight edge over AT&T as it trades further beneath its decade high.
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AT&T said it would receive an aggregate amount of $43 billion in a combination of cash, debt and WarnerMedia's retention of certain debt. AT&T shareholders would receive stock representing 71% of the new company, while Discovery shareholders would own 29%, it added.
DirecTV shareholders will get $28.50 per share in cash and $66.50 per share worth in AT&T stock. In the stock portion of the deal, they will receive 1.905 AT&T shares if AT&T stock price is below $34.90 at closing or 1.724 AT&T shares if its stock price is above $38.58. If AT&T's stock price at closing is between $34.90 and $38.58, DirecTV shareholders will receive between 1.724 and 1.905 shares of AT&T stock, equal to $66.50 in value.
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In 2005, SBC purchased its former parent AT&T Corp. and took on its branding, with the merged entity naming itself AT&T Inc. and using its history, a version of its iconic logo and stock-trading symbol which launched on December 30, 2005. AT&T Inc. acquired BellSouth Corporation in 2006, the last independent Baby Bell company, making its formerly joint venture Cingular Wireless (which had acquired AT&T Wireless in 2004) wholly owned and rebranding it as AT&T Mobility. AT&T Inc. also acquired Time Warner in 2016, with the proposed merger confirming on June 12, 2018 and the aim of making AT&T the largest and controlling shareholder of Time Warner and rebranding it as WarnerMedia in 2018. The company later withdrew its equity stake in WarnerMedia in 2022 and merged it with Discovery, Inc. to create Warner Bros. Discovery, divesting itself of its media arm.
On November 18, 2005, SBC Communications, Inc.based in San Antonio, purchased AT&T Corp. for $16 billion. After this purchase, SBC adopted the better-known AT&T name and brand, with the original AT&T Corp. still existing as the long-distance landline subsidiary of the merged company. The current AT&T Inc. claims the original AT&T Corp.'s history (dating to 1877) as its own, but retains SBC's pre-2005 corporate structure and stock price history. As well, all SEC filings before 2005 are under SBC, not AT&T.
AT&T made an attempt in 2011 to purchase T-Mobile for a $39 billion stock and cash offer. The bid was withdrawn after the takeover company was faced with significant regulatory and legal hurdles, along with heavy resistance from the U.S. government. As per the original acquisition agreement, T-Mobile received $3 billion in cash as well as access to $1 billion worth of AT&T-held wireless spectrum.
In September 2019, activist investor Elliott Management revealed that it had purchased $3.2 billion of AT&T stock (a 1.2% equity interest), and had pushed for the company to divest assets to improve its share value.
AT&T stock has been bleeding out since the summer, but soon there will be another chance for the telecom giant to demonstrate growth and shareholder value. Besides, AT&T stock has never stopped delivering outstanding value and generous dividends.
AT&T (NYSE:T) is unloved on Wall Street, but that could change very soon. Be ready for what could be a blockbuster third-quarter earnings report on October 20th, as moderate expectations may lead to a positive surprise. For the long-term, I am bullish on AT&T stock.
Turning to Wall Street, T stock has a Moderate Buy consensus rating based on six Buys and eight Holds assigned in the past three months. The average AT&T price target is $21.07, implying 37.7% upside potential.
It's the single-largest communications company in the world by revenue. Its massive dividend yield is not only an order of magnitude higher than the lowly 10-year Treasury yield, but AT&T has been increasing its quarterly dividend payout annually for the last 35 years, making it a member of that rarefied class of stocks known as the S&P 500 dividend aristocrats.
But let's get to what most sets AT&T stock apart from Verizon: AT&T's media business. Specifically, the company acquired Time Warner in an $85 billion deal in 2018, diversifying its revenue streams as it added Warner Bros., HBO and Turner to its portfolio overnight. Some of the brands under its umbrella include CNN, DC Entertainment, Cinemax and TNT, among other assets.
"AT&T has a great combination of an attractive dividend yield coupled with a fairly cheap valuation. The dividend yield is up around 7% and the stock trades around nine times forward earnings. Although top-line growth isn't stellar, it's the ability to generate free cash flow that sets AT&T apart. From 2015 to 2019, free cash flow nearly doubled on revenues growing at midsingle digits," Boothe says.
There's another catalyst that could make AT&T shares a better pick than Verizon stock this year. That's despite a 23% year-to-date decline for T against just a 4% year-to-date loss for VZ at the time of this writing.
"I believe AT&T is attractive here because consensus estimates are not factoring in the potential for HBO Max to drive better video subscription net adds, and while investors may be correct not including this in their estimates, the risk/reward is compelling, with a turnaround in video subs almost a free option on the stock," Bilsky says.
And while VZ shares don't boast the chart-topping dividend or the dividend aristocrat status that T stock does, a 4.2% yield is still nothing to scoff at, and a track record of 14 consecutive annual dividend increases is still rather impressive.
Neither company is likely to go anywhere anytime soon, and these two telecom giants each have characteristics that might appeal to longer-term income investors focused on stability. Both stocks have their selling points.
"Both should benefit from 5G as early evidence has shown customers are willing to upgrade their mobile plans for faster and more unlimited internet. Additionally, both stocks are trading at historical discounts relative to the overall market price-earnings ratio and comparing their dividend yields to the 10-year bond," Bilsky says.
"Verizon's stock naturally has held up much better during the pandemic and likely will continue to do so in a continuation of that environment. However, AT&T has more upside to a recovery in economic growth and a resumption of normal life with the return of film slates, advertising dollars, studio production and increased consumer discretionary spend," Hendel says.
As a testament to how opinion is fluctuating, Patrick Comack, senior telecom analyst at Guzman & Co., thought AT&T was a value buy just a few weeks ago. At the time, the stock was rallying. Comack said buying AT&T would get you three solid assets (wireless, cable and business services) and one worth nothing (consumer).
In addition, Alcatel-Lucent shares jumped almost 10 percent after the telecom-equipment stock was upgraded to "buy" from "neutral" by Goldman Sachs. And Nokia gained after Goldman Sachs upgraded the stock to "buy," citing the handset maker's long-term growth potential. 041b061a72