Is AT&T Inc. (NYSE:T) Making the Right Move with Unlimited Data Plans?


Do you remember back, over a decade ago, when mobile data plans came with unlimited data? Perhaps you do, or perhaps you don’t, but AT&T Inc. (NYSE:T) is now bringing this idea back to reality.

AT&T Inc. (NYSE:T) has just announced that they will begin offering unlimited data to their customers who use both the company’s television service and wireless services. This looks to be a genius move on behalf of the telecommunications company. By offering unlimited data, they may just be able to persuade potential customers to not only sign up for mobile phone services, but TV service as well.

Shares of AT&T (NYSE:T) are up slightly (0.09%) in pre-market trading this morning, but it should be interesting to see how investors react to this news in trading today. Could this be what the company needs to separate them from their competitors, or will this only lead to other services offering similar deals?

“We want customers to have both products,” wireless and TV, said Ralph de la Vega, the CEO of AT&T Mobile and Business Solutions.

The stock closed at $33.54 during the last trading session. It is down 2.98% since June 5, 2015 and is downtrending. It has outperformed the S&P500 by 2.88%.

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 15.30% above today’s ($33.54) 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 increased, 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 $206.34 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 39.16 P/E ratio. The Company’s divisions include Wireless, Wireline and International.