AT&T Inc. (T) WIll End 2-Year Contracts on January 8th


For those of you who are used to signing 2-year contracts with AT&T Inc. (NYSE:T) in order to subsidize your latest smartphone purchase, there is only nine days left to take advatage of this long time offer. AT&T Inc. (NYSE:T) will no longer be offering 2-year contracts to their customers in an effort to get away from the practice that many of their competitors already have already halted. Instead, customers of AT&T Inc. (NYSE:T), who wish to purchase a new smartphone, will either need to pay full price, or utilize an installment plan.

The company’s biggest competitor, Verizon, has already been pushing customers away from their 2-year contracts by offering more affordable plans which take some of the pain out of simple monthly installments. In fact Veirzon’s installment plans, which are still only an option, end up being more affordable to most customers than their optional 2-year contract. While AT&T Inc. (NYSE:T) will not be keeping such contracts an option any longer, they likely will offer packages which are cheaper or about equal in price over a two year period as the curent 2-year plans, which have subsidized a bulk of a new phone’s purchase price over the last several years.. The stock is down 0.42% or $0.15 following the news, hitting $34.78 per share. Approximately 9.19M shares traded hands. T shares have declined 0.06% since May 27, 2015 and are currently downtrending. It has outperformed the S&P500 by 2.07%.

From a total of 9 analysts covering AT&T Inc. (NYSE:T) stock, 5 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 56% of the ratings are positive. The highest target price is $47 while the lowest target price is $35. The mean of all analyst targets is $38.67 which is 11.18% above today’s ($34.78) stock price. AT&T Inc. was the topic of 12 analyst reports since July 27, 2015 according to the firm StockzIntelligence Inc. Oppenheimer maintained shares on September 5 with a “Outperform” rating. Macquarie Research maintained T stock in a recent report from September 1 with a “Buy” rating. Finally, FBR Capital maintained the stock with a “Mkt Perform” rating in a report they issued on a July 24.

The institutional sentiment increased to 2.21 in Q2 2015. It’s up 1.31, from 0.9 in 2015Q2. The ratio improved, as 69 funds sold all their AT&T Inc. shares they owned while 426 reduced their positions. 143 funds bought stakes while 952 increased their total positions. Institutions now own 3.30 billion shares which is 19.98% more than the previous share count of 2.75 billion in 2015Q2.

King Investment Advisors Inc Tx holds 46.24% of its total portfolio in AT&T Inc., equating to 209,336 shares. Evercore Trust Company N.A. owns 203.44 million shares representing 25.57% of their total US portfolio. Moreover, Mediatel Partners has 15.54% of their total portfolio invested in the company, equating to 935,304 shares. The Massachusetts-based Excalibur Management Corp has a total of 8.52% of their portfolio invested in the stock. American Investment Services Inc., a Massachusetts-based fund reported 391,453 shares owned.

AT&T Inc. is a holding company. The Company provides telecommunications services. The company has a market cap of $214.74 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 40.61 P/E ratio. The Company’s divisions include Wireless, Wireline and International.