AT&T Inc. Reports Decrease in Holdings as Kornitzer Capital Management Adjusts Portfolio
Date: August 14, 2023
Amidst the dynamic landscape of financial investment, Kornitzer Capital Management Inc. KS has significantly reduced its holdings in AT&T Inc. (NYSE:T) during the first quarter of this year, according to the institution’s most recent filing with the Securities and Exchange Commission (SEC). This shift in ownership comes as part of their ongoing efforts to optimize their portfolio and adapt to changing market conditions. With a considerable number of shares sold, valued at over $19 million, Kornitzer Capital Management Inc. KS has caught the attention of industry experts.
Analyzing the Impact:
The institutional investor’s divestment has resulted in a reduction of 3.1% in their holdings within AT&T. Previously owning approximately 1,011,095 shares of the technology giant’s stock, Kornitzer Capital Management Inc. KS now holds around 978,392 shares after selling off 32,703 shares during the period under review. As per its latest SEC filing, on August 14th the value of their remaining AT&T holdings was calculated at $19,464,000.
Quarterly Dividend Announcement:
In addition to updating its position on AT&T Holdings Inc., it is important to note that the company recently declared a quarterly dividend for its shareholders. The dividend distribution took place on Tuesday, August 1st and was remitted to all shareholders listed on record as of Monday, July 10th. Shareholders received a dividend amounting to $0.2775 per share owned by them.
Dividend Payout Ratio:
AT&T’s dividend payout ratio (DPR) currently stands at -90%. This figure suggests that rather than distributing dividends from its profits alone – which is often seen across various industries – AT&T may have utilized other sources to pay out dividends at an amount surpassing its profits. While this may seem unorthodox, the telecommunications company’s significant dividend percentage could attract investors seeking financial gains over capital appreciation.
Annualized Dividend and Yield:
AT&T’s annualized dividend, considering it paid a quarterly dividend of $0.2775 per share, amounts to $1.11. Furthermore, with a yield of 7.72%, AT&T is providing an attractive return on investment for its shareholders. The ex-dividend date for this payment occurred on Friday, July 7th.
Conclusion:
Kornitzer Capital Management Inc. KS’s decision to reduce its holdings in AT&T has both raised eyebrows and instigated speculation within the investment community. As an institutional investor adapting to prevailing market trends, such adjustments are not uncommon as portfolio managers continuously evaluate their positions for optimal returns while addressing risk concerns. AT&T’s generous dividend payout ratio and alluring yield further accentuate the appeal of such an investment for potential shareholders seeking reliable returns.
Note: This article utilizes information from a press release dated August 14, 2023, and should be used solely for informational purposes.
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Major Investors Increase Holdings in AT&T as Confidence Grows in Company’s Potential for Growth and Success
August 14, 2023 – In recent news, several major investors have made significant changes to their positions in AT&T, a leading technology company. Axiom Financial Strategies LLC has increased its holdings in AT&T by an impressive 12.2% during the first quarter. This means that Axiom now owns 17,888 shares of AT&T’s stock with a value of $342,000 after acquiring an additional 1,941 shares over the previous quarter.
Furthermore, Roundview Capital LLC also saw a substantial increase in its holdings in AT&T during the first quarter. Their ownership rose by an astonishing 62.3%, totaling 24,628 shares with a worth of $582,000 after purchasing an additional 9,450 shares.
Another notable investor is Sei Investments Co., which saw a growth rate of 23.1% in their ownership of AT&T’s shares during the first quarter. As a result, Sei Investments Co. now possesses an impressive 1,099,843 shares of the company’s stock valued at $25,983,000 after acquiring an additional 206,434 shares.
Similarly, Candriam Luxembourg S.C.A.’s ownership in AT&T increased by 5.5% during the same period. They now own 476,601 shares valued at $11,262,000 after purchasing an additional 25,028 shares.
Even more remarkably is Loomis Sayles & Co. L P’s astounding growth in their holdings by an astonishing 1,191.3%. Loomis Sayles now holds 12,706 shares of AT&T’s stock valued at $300,000 after acquiring an additional 11,722 shares over the last quarter.
Overall it appears that a significant portion (54.09%) of AT&T’s stock is currently owned by hedge funds and other institutional investors.
Several analysts have recently issued reports on AT&T’s stock. HSBC reduced their price objective from $21.00 to $19.00, and Argus lowered their rating from “buy” to “hold.” Similarly, Wells Fargo & Company reduced AT&T’s target price from $22.00 to $20.00 while maintaining an “overweight” rating.
On the other hand, StockNews.com initiated coverage on AT&T with a “hold” rating, and JPMorgan Chase & Co. downgraded the stock from an “overweight” rating to a “neutral” rating with a decreased price objective of $17.00.
Overall, ten research analysts have given AT&T a hold rating, four analysts have assigned a buy rating, and one analyst has provided a strong buy rating for the stock. Bloomberg reports that AT&T has a consensus rating of “Hold,” along with an average target price of $20.00.
In terms of market performance, on Friday, August 14th, shares of NYSE:T traded up by $0.20 to reach $14.37. Approximately 31,237,083 shares were exchanged throughout the day compared to its average volume of 65,643,648 shares.
AT&T currently holds a market capitalization of around$102.73 billion and exhibits impressive ratios such as a negative price-to-earnings ratio (-11.78) and a favorable price-to-earnings-growth ratio (1.76). Additionally, it boasts a beta value of 0.65.
Over the past year, AT&T has seen its share price fluctuate between its lowest point at $13.43 and its highest at $20.50.
The company maintains good financial health with reasonable debt levels demonstrated by its debt-to-equity ratio of 1.10 – indicating that it relies moderately on borrowed funds for growth initiatives.
Concerning liquidity ratios, AT&T showcases favorable figures with a current ratio of 0.68 and a quick ratio of 0.63.
At&T released its quarterly earnings data on Wednesday, July 26th. The company reported $0.63 earnings per share for the quarter, surpassing analysts’ consensus estimates of $0.60 by $0.03. Furthermore, AT&T exhibited a positive return on equity of 15.91% despite a negative net margin of 7.22%. In terms of revenue generation, the company generated $29.92 billion during the quarter, slightly lower than analyst estimates.
Year-over-year, AT&T’s revenue for the quarter grew by 0.9%. This positive performance is indicative of the company’s ability to navigate challenges and adapt to an ever-changing market.
Analysts’ projections indicate that AT&T Inc.’s current fiscal year will likely yield an EPS (earnings per share) value of approximately 2.43.
AT&T’s consistent efforts to grow and adapt in a highly competitive market have attracted significant attention from investors and analysts alike. Despite mixed reviews from analysts, the increasing holdings by large investors show confidence in AT&T’s potential for future growth and success.
