AT&T (T, $31.39) to cut dividend payout ratio, amid media asset merger with Discovery
AT&T will slash its dividend payout ratio by more than 20 percentage points, amid its media asset merger with Discovery .
AT&T said its dividend payout ratio, which was around 63% in the previous quarter, will be "re-sized" to account for the distribution of WarnerMedia assets into a new company. The remaining AT&T assets will intend to give shareholders a dividend payout ratio of between 40% and 43%, based on expected free cash flow of around $20 billion.
AT&T Inc. agreed to spin off its media operations in a deal with Discovery Inc. that will create a new company, merging assets such as CNN and HBO with HGTV and the Food Network. The transaction values the combined entity at about $130 billion including debt, based on WarnerMedia’s estimated enterprise value of more than $90 billion.
As part of the 'Reverse Morris Trust' agreement structure, AT&T shareholders will own 71% of the combined entity. The entity is expected to generate $52 billion in 2023 revenues and a combined subscriber base of nearly 150 million.
Aroon Indicator for T shows an upward move is likely
T's Aroon Indicator triggered a bullish signal on May 02, 2022. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 201 similar instances where the Aroon Indicator showed a similar pattern. In 113 of the 201 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at 56%.
Current price $19.85 crossed the support line at $18.96 and is trading between $20.53 resistance and $18.96 support lines. Throughout the month of 04/12/22 - 05/13/22, the price experienced a +3% Uptrend, while the week of 05/06/22 - 05/13/22 shows a -0.95% Downtrend.
The Momentum Indicator moved above the 0 level on May 06, 2022. You may want to consider a long position or call options on T as a result. In 40 of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 49%.
T moved above its 50-day Moving Average on April 08, 2022 date and that indicates a change from a downward trend to an upward trend.
Following a +2.11% 3-day Advance, the price is estimated to grow further. Considering data from situations where T advanced for three days, in 156 of 331 cases, the price rose further within the following month. The odds of a continued upward trend are 47%.
The 10-day RSI Indicator for T moved out of overbought territory on April 22, 2022. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 26 similar instances where the indicator moved out of overbought territory. In 15 of the 26 cases, the stock moved lower in the following days. This puts the odds of a move lower at 58%.
The Stochastic Indicator may be shifting from an upward trend to a downward trend. In 31 of 60 cases where T's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 52%.
The Moving Average Convergence Divergence Histogram (MACD) for T turned negative on May 09, 2022. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 53 similar instances when the indicator turned negative. In 23 of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at 43%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where T declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 45%.
T broke above its upper Bollinger Band on April 11, 2022. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 82%. During the last month, the daily ratio of advancing to declining volumes was 1.47 to 1.
The Tickeron Valuation Rating of 6 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.840) is normal, around the industry mean (3.973). P/E Ratio (8.299) is within average values for comparable stocks, (163.866). Projected Growth (PEG Ratio) (2.602) is also within normal values, averaging (5.291). Dividend Yield (0.093) settles around the average of (0.054) among similar stocks. P/S Ratio (0.878) is also within normal values, averaging (8.805).
The Tickeron SMR rating for this company is 18 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 43 (best 1 - 100 worst), indicating steady price growth. T’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 99 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. T’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock worse than average.
Wireless Telecom includes companies that sell wireless antenna or satellite-based communication services. This is the fastest-growing area in communications, as more and more communication and computing happen on mobile devices and cloud-based platforms. Wireless telecom is a key industry for global connectivity, and has even further room for growth in emerging markets and in rural parts of developed nations. People’s growing need for speed in data connectivity, higher resolution, and smoother video streaming and multimedia applications should drive growth and competition within this segment. T-Mobile US, Inc., Vodafone Group, and Sprint Corporation are some major providers of wireless telecom.
The average market capitalization across the Wireless Telecommunications Industry is 13.5B. The market cap for tickers in the group ranges from 9.7K to 12.1T. LNETF holds the highest valuation in this group at 12.1T. The lowest valued company is IGLDF at 9.7K.
The average weekly price growth across all stocks in the Wireless Telecommunications Industry was -1.37%. For the same Industry, the average monthly price growth was -4.64%, and the average quarterly price growth was -7.58%. CVST experienced the highest price growth at 110.33%, while BZQIF experienced the biggest fall at -44.44%.
The average weekly volume growth across all stocks in the Wireless Telecommunications Industry was -17.93%. For the same stocks of the Industry, the average monthly volume growth was -14.81% and the average quarterly volume growth was 35.35%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the Aroon Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 43%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.06.
14 stocks in the group of tickers exhibit a similar negative trend based on the MACD indicator with an average likelihood of 58%.
The most notable companies in this group are Verizon Communications (NYSE:VZ), AT&T (NYSE:T).
The average market capitalization across the group is 24.7B. The market cap for tickers in the group ranges from 338.5K to 202.3B. VZ holds the highest valuation in this group at 202.3B. The lowest valued company is PSTO at 338.5K.
The average weekly price growth across all stocks in the group was -1.96%. For the same group, the average monthly price growth was -5.77%, and the average quarterly price growth was 4.1%. DTGI experienced the highest price growth at 16.28%, while BZQIY experienced the biggest fall at -28.47%.
- 5/11/22 7:46 AM: PT Telekomunick (TLKMF, $0.29) was a top loser this week, declining -6.28%. Expect a Downtrend reversal
- 5/10/22 5:36 AM: Verizon Communications (VZ, $48.62) was a top weekly gainer, with a +5.17% jump
- 5/10/22 5:36 AM: Mahanagar Telephone Nigam (MTENY, $0.6) was a top weekly gainer, with a +8.89% jump. Expect an Uptrend reversal
The average weekly volume growth across all stocks in the group was -10.84%. For the same stocks of the group, the average monthly volume growth was 67.34% and the average quarterly volume growth was 129.85%
- 4/28/22 5:54 AM: The volume for Telefonica Brasil SA stock increased for one day, resulting in a record-breaking daily growth of 328% of the 65-Day Volume Moving Average
- 4/28/22 5:54 AM: The volume for KT stock increased for one day, resulting in a record-breaking daily growth of 217% of the 65-Day Volume Moving Average
- 4/9/22 5:20 AM: The volume for PT Telekomunikasi Indonesia stock increased for one day, resulting in a record-breaking daily growth of 214% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows