Some critics and cinema goers believe that the “Joker” is no laughing matter. The controversial film by Warner Bros. just made history for an October opening weekend, generating over $93 million. It wouldn't take Batman to figure this riddle out, but guess who owns Warner Media? Yes, you guessed it, AT&T.
AT&T’s share price performance has been out of this world with a stellar 37.80% gain YTD. Whether the multinational communications conglomerate can continue this run and keep its businesses relevant remains to be seen. Some believe the new planned streaming service HBO Max, might be a new venture in a space that seems already overcrowded.
On the flip side is that Elliott Management, which is run by billionaire Paul Singer has acquired a $3.2 Billion stake in AT&T and sees it has highly undervalued.
It is also time again for AT&T’s $0.51 per share quarterly dividend which is set to go Ex-Dividend on Wednesday the 9th of October 2019. The payment date for the dividend is scheduled for the 1st of November 2019.
Considering the dividend payable this week and seasonality, we might expect the price to move back lower to our original target price of $36.18 per share. The price action might find technical support at this level before another leg higher or even the $34.35 per share level.
If seasonality is anything to go by then we might expect the share price to come under pressure over the month of October and pick up momentum early November.
Source - Bloomberg
Best news of all is this stock is a #Thrive 50 share, which means 'Thrivalists' stand to pay $0 in brokerage fees when purchasing AT&T stock on EasyEquities.
- Portfolio Hold (Current)*
- Portfolio Buy opportunity: close above $36.18 per share**.
- WhatsTheBeef long term target price: $39.63 per share.
Know your company: AT&T
- Warner Media, LLC is an American multinational mass media and entertainment conglomerate owned by AT&T.
- AT&T acquired Time Warner in 2018 for $109 Billion. After the acquisition Time Warner became WarnerMedia.
- Just to note, AT&T is the world's largest telecommunications company, also the largest provider of mobile telephone services, and the largest provider of fixed telephone services in the United States through AT&T Communications.
*Portfolio Hold (Current) refers to investors who already hold the stock within their portfolio.
**Portfolio Buy opportunity refers to Technical level crossed which might imply that the markets behaviour would support the outlook and Close above refers to a share price close above a Technical Resistance level.
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Barry is a market analyst with GT247.com, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table.