AT&T Inc. (T) is Set to Increase Prices for Their Unlimited Data Plans


AT&T Inc. (NYSE:T) confirmed that they will be increasing the price for their “grandfathered in” unlimited data plans. The price hike, while it may upset some, is very minimal, as it will increase the fees paid by loyal customers by just $5.00. This $5.00 increase will bring the monthly total to just $35, which still seems to be a steal in today’s world of limited data for cellular providers.

The $30 unilimited data plans actually were put to an end back in 2010, but those who had the plan were permitted to keep them. This is the first price increase, and it comes after Verizon recently increased their “grandfathered in” plans as well. However, they elected to raise the price by a staggering $20.00.

It should be interesting to see how investors react to this news, as $5 if a very minimal price increase, one that probably won’t sway customers away from the providers.

The stock closed at $33.67 during the last session. It is down 3.41% since April 28, 2015 and is downtrending. It has underperformed by 2.52% the S&P500.

Out of 9 analysts covering AT&T Inc. (NYSE:T), 5 rate it “Buy”, 0 “Sell”, while 4 “Hold”. This means 56% are positive. $47 is the highest target while $35 is the lowest. The $38.67 average target is 14.85% above today’s ($33.67) stock price. AT&T Inc. was the topic in 12 analyst reports since July 27, 2015 according to StockzIntelligence Inc. Oppenheimer maintained the stock on September 5 with “Outperform” rating. Macquarie Research maintained the shares of T in a report on September 1 with “Buy” rating. Finally, FBR Capital maintained the stock with “Mkt Perform” rating in a July 24 report.

The institutional sentiment decreased to 0.9 in Q2 2015. Its down 0.25, from 1.15 in 2015Q1. The ratio dropped, as 87 funds sold all AT&T Inc. shares owned while 719 reduced positions. 128 funds bought stakes while 594 increased positions. They now own 2.75 billion shares or 2.07% less from 2.80 billion shares in 2015Q1.

Evercore Trust Company N.A. holds 25.74% of its portfolio in AT&T Inc. for 203.74 million shares. Mediatel Partners owns 935,304 shares or 15.95% of their US portfolio. Moreover, American Investment Services Inc. has 9.04% invested in the company for 476,812 shares. The Massachusetts-based Barry Investment Advisors Llc has invested 8.38% in the stock. Excalibur Management Corp, a Massachusetts-based fund reported 211,884 shares.

AT&T Inc. is a holding company. The Company provides telecommunications services. The company has a market cap of $206.43 billion. The Company’s services and products include wireless communications, data/broadband and Internet services, video services, local exchange services, long-distance services, telecommunications equipment, managed networking and wholesale services. It has 39.31 P/E ratio. The Company’s divisions include Wireless, Wireline and International.