AT&T Stock Price – T Price Chart, History and Prediction
The AT&T stock price has been underperforming in recent times, even more so since the firm announced a major overhaul of its telecommunications and media portfolio. With that in mind, does the AT&T stock (T) deserve a spot in your portfolio?
This detailed guide will to help you figure that out. We will look into the AT&T stock price history and current trends, as well as providing predictions regarding the stock value’s future.
AT&T Price Chart Today
AT&T Stock Price History
Evaluating AT&T's stock price history plays an essential role in helping investors and analysts come up with price projections. Indeed, analyzing a stock's price history is one of the best ways to understand the different events likely to affect the stock in the future.
AT&T Stock Price Historical Trends: 1999 to 2009
Despite having publicly traded for decades, AT&T stock price has never been able to rise as high as it did in July 1999, when it reached an all-time high of $59. This late 1990s spike in the price of AT&T stock was mainly fuelled by a $5 billion acquisition of IBM's Global Network Business in 1999, and a $48 billion acquisition of cable company TCI from John Malone a year earlier.
When the dot-com bubble burst in 2000, the resulting stock market crash sent the AT&T stock price dipping to as low as $21. Then, as seen on the AT and T stock price chart, the company's worst trading day came on December 19, 2000, when the stock price lost 12.67%. The dip was caused by news that AT&T had failed to give the Federal Communications Commission the commitment to comply with federal limits regarding the control of the telecom market share.
Over the next 7 years, AT&T's stock rose gradually, eventually reaching a peak of $42 in September 2007, shortly before the 2008 global financial crisis. We can partly attribute this 7-year rise to the appointment of Randal Stephenson, the current CEO. By March 2009, AT&T's share price dipped to $24, meaning the share lost 44% from its pre-crisis peak.
AT&T Stock Price Historical Trends: 2010 to Today
As the broader stock market recovered post the 2008 crisis, the AT&T stock price quote recovered almost constantly from the 2009 $24 low, to levels of over $43 in July 2016. By examining AT&T's price movements in 2016, we notice that this was the same period the overall downtrend began.
In 2017, the AT&T stock prices dropped sharply as the firm faced tough competition in the telecommunication space. Then, in the first half of 2018, the stock price fell even further (by 17%), due to AT&T's weak quarterly revenue, coupled with an antitrust suit filed against the company by the US Department of Justice.
In, 2019 AT&T stock was able to bounce back to $40 for the first time in over 3 years. AT&T had managed to reassure its investors by promising to eliminate any unprofitable non-core businesses it owned. Actually, had the Coronavirus pandemic not hit in March 2020, the AT&T stock price would have, without a doubt, set a new all-time high by 2021.
AT&T Stock Price Splits
AT&T has 2 stock splits in its recent history:
- The 1st AT&T stock price split took place on March 20, 1998, as a 2 for 1 split. This means that for each share of AT&T owned pre-split, shareholders now owned 2 shares. For example, a 2000 share position pre-split became a 4000 share position.
- The 2nd split took place on November 18, 2002. But unlike regular splits, this one was a 24875 for 50000 reverse split. This means that for every 50000 shares of AT&T stock owned pre-split, shareholders now owned 24875 shares. For instance, a 4000 share position pre-split became a 1990 share position following the 2nd
Why did AT&T executed the second split? It did so in response to its 2002 assets merger with Comcast Corporation. Indeed, AT&T Broadband and Comcast Corporation merged their assets into "AT&T Comcast Corporation" in a deal finalized in November 2002.
Historically speaking, reverse stock splits have been used to pump the value of stocks in danger of falling below the 2001 $1 limit necessary for listing on the Nasdaq. Even though AT&T's shares at the time traded at around $14 per share, analysts had predicted that once the AT&T – Comcast deal was complete, the remaining AT&T shares would be valued at around $4.40.
AT&T Stock Price Prediction
To better lay out AT&T's stock price forecasts, this section will cover two different categories, namely price targets and analyst consensus & predictions (1, 2, 5, and 10 years.)
AT&T's current stock price has been trading below the $30 mark during 2021. This suggests that a break above this resistance level is what AT&T traders and investors should watch out for. Note, though, that this won't be as easy as some shareholders think, and I'll show you why in a minute.
Analyst consensus and predictions
According to AI Pickup, the average 2022 forecast by 12 Wall Street analysts is 19.22. And according to additional predictions offered by the same analysts, the average price forecasts for 2025 and 2030 are $29 and $33, respectively.
How to Buy T Stock Today
Does the AT&T stock price today make you want to invest in T shares? If so, you'll need to register with a regulated and efficient brokerage platform, such as ZFX.
ZFX is a brokerage platform authorized and licensed by the Financial Conduct Authority It is a secured broker which offers many benefits: competitive fees, educational resources, rapid execution, the popular MT4 platform, a wide catalogue of trading assets… Below is a step-by-step guide on how to get started registering on ZFX.
Investing in AT&T: Tutorial
Let’s look at how to open a ZFX account and start trading AT&T shares.
Step 1: Register with ZFX
First, go to ZFX's homepage and click the "Open an Account" button at the top of the page.
On this next page that opens, enter the details required on the registration form and hit the blue "Next" button when you have completed it.
Step 2: Make Your First Deposit
Now, go to the right side of your account's profile dashboard and click on the "Account Bal" button. Input the amount you'd like to invest, then hit the "Deposit" button.
Step 3: Account Verification
To access all features of your ZFX account, you'll need to pass the KYC verification. To verify your identity on the platform, provide a valid ID, pus a bank statement or utility bill that can confirm your address. ZFX will take less than 24 hours to verify your identity.
Step 4: Invest in AT&T Stock at Current Price
Now that your live ZFX account is credited, download the MT4 platform using the link on the top of the page, and sign in using the log-in details sent to the email you provided. Once you've install the software on your desktop or phone, type AT&T into the site's search bar and start tracking the AT&T stock price today per share.
To Buy or Not to Buy AT&T?
Should I invest in AT&T stock at its current price? Let’s take a look at a few arguments in favour of investing in T shares today.
1. AT&T stock will earn you interesting dividends
AT&T is currently part of the Dividend Aristocrat club, having increased its dividend for 37 consecutive years. The firm also boasts a payout ratio of over 65%. For context, the Dividend Aristocrat Club is a club made up of publicly traded companies that have consistently paid dividends every year to their investors for the last 25 years.
2. The AT&T Inc. Stock Price Today is fairly affordable
The AT&T stock currently trades at less than nine times forward earnings. T-Mobile and Verizon have forward P/E (price-to-earnings) ratios of 39 and 10, respectively, which has led critics to argue that AT&T's mistakes from the past justify the discount price it has today.
That isn't entirely true, though, because AT&T's business has already passed a low point last year, when the Covid-19 pandemic resulted in customers postponing their upgrades to new 5G smartphones. Today, these Covid-related headwinds are fading, and AT&T stock price is recovering, even though it is still at an affordable price.
3. A new AT&T is about to emerge
The AT&T stock price today has been underperforming for three main reasons, namely:
- Facing tough competition in the wireless sector from T-Mobile and Verizon
- Its pay-TV business bleeding subscribers to streaming services
- The company's management's attempt to stop the bleeding with debt-fueled takeovers of Timer Warner and DirecTV. This just made the problems even bigger.
With that in mind, AT&T recently spun off DirecTV into a new firm in August 2021 and announced its plan to spin off WarnerMedia into a new firm, through a merger with Discovery by mid-2022. The two firms are expected to fare well by themselves, now that they'll operate with simpler business models.
After the WarnerMedia spin-off concludes, the reinvented AT&T plans to expand and upgrade its 5G network to catch up with T-Mobile. T-Mobile surpassed AT&T as the 2nd-largest wireless carrier in America after merging with Sprint in April 2020.
AT&T's management is confident that the “new” AT&T will quickly grow its annual revenue at a low-single-digit compound annual growth rate between 2022 and 2024, while its adjusted EPS and EBITDA increase at mid-single-digit rates.
Things to Know About the AT&T Stock Price before You Invest
Before you start trading T shares, here are a few things to keep in mind and consider.
1. Watch out for a market overreaction
Today, competitors like T-Mobile and Verizon passed AT&T in the rollout of 5G technology. As a response, AT&T announced it was going to leave the media business and focus on its wireless business. This feeling hasn't been reflected in the AT T stock price today, though, and a lot of it has to do with bad optics.
This prospect is still quite painful for investors who stuck by the firm because of its business in the media realm. That said, opportunistic investors know that how they react to market overreactions could make all the difference, so watch out for those as AT&T's future unfolds.
2. Analyze AT&T's Investing Metrics
There are 4 major and easily understood metrics you should have in your analytical toolkit before picking a stock to invest in, and AT&T is no exception. These metrics include the Debt-to-EBITDA ratio, Price-to-book (P/B) ratio, PEG (price-to-earnings-growth) ratio, and P/E (price-to-earnings0 ratio.
3. Economic News and Current Events
AT&T's profit, revenue, debt load, and PEG ratio aren't the only things driving the company's stock price. In fact, a wide array of economic news and indicators drive the broader industry segment, which, in turn, affects individual stock prices (like that of AT&T) to varying degrees. With that in mind, always ensure you're on top of any news or current events that might affect AT&T's stock price.
4. AT&T's Competition
The telecommunications industry is profoundly competitive and disrupted. As a result, AT&T has had to differentiate itself and get crisp in its go-to-market strategies. Competitors you should carefully analyze before investing in the AT&T stock include T-Mobile, Verizon, Lumen Technologies, American tower, Crown Castle and Back Box Corporation.
Bottom Line: What Can We Expect from the AT&T Stock Price?
Currently, the AT&T stock price is at a interesting and affordable level. On top of this, the AT&T stock currently generates a 7.5% yield, which is one of the highest dividend yields in the S&P 500. And given the considerable upside potential of its 5G wireless technology, the recent pullback in the company's stock offers a unique buying opportunity for long-term investors.
If you wish to invest in T at the current, attractive AT&T stock price, you can open a ZFX account today and start trading in a few quick and easy steps.