Analyst Waxes Pessimistic on Verizon Rival

Analysts were mostly split heading into today

Deputy Editor
Mar 23, 2020 at 10:41 AM
facebook twitter linkedin


AT&T Inc. (NYSE:T) is down 4.1% to trade at $28.45 at last check. The telecommunications name was downgraded at Cowen and Company to "market perform" from "outperform," and recieved a price-target cut to $37 from $43. The brokerage believes AT&T complex programs such as WarnerMedia will create uncertainty in comparison to rival Verizon (VZ).

T has seen a recent bear gap alongside the broader market sell-off, dipping below its 320-day moving average for the first time since last June. The equity is down 27.2% year-to-date and earlier hit an annual low of $26.27.

Analysts are split on AT&T stock, with eight out of 15 considering a "strong buy" or "buy" and seven sporting a "hold" or worse recommendation. However, the 12-month consensus price target of $38.67 is still a 35.9% premium to current levels.

In the options pits, puts are being favored, per T's 10-day put/call volume ratio of 1.46 at the the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 94% of readings from the past year.In other words, puts have been purchased over calls at a faster-than-usual clip.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners