AT&T Stock Sees Modest Dip After Downgrade

Keybanc called the company a "value trap"

Deputy Editor
Oct 5, 2020 at 3:07 PM
facebook twitter linkedin


The shares at AT&T Inc (NYSE:T) are down 0.2% at $28.60 at last check, after Keybanc downgraded the stock to "underweight" from "sector weight" while calling it a "value trap." The firm sees "few positive catalysts" for the company outside of asset sales, and noted that earnings, which are due out Oct. 22, could be a negative catalyst. 

On the charts, the 10-day moving average swooped in to catch today's pullback, the stock down at $28.36 during its session lows. Still on the rise from its brief September respite, the equity is down 26.7% year-to-date. 

Coming into today, analysts appear split on AT&T stock, with six out of the 16 in coverage at a "buy" or better rating, eight at a tepid "hold," and two a "strong sell." Meanwhile, the 12-month consensus price target of $32.02 is an 11.8% premium to current levels.

Moving over to the options pits, puts are looking especially popular as of late, though calls still outweigh puts on an overall basis. T's 50-day put/call volume ratio of 0.80 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 84% of readings from the past year, showing that long puts are being picked up at a faster-than-usual rate.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

 


 


 
Special Offers from Schaeffer's Trading Partners