Telecommunications giant AT&T is reportedly considering selling its Warner Bros. gaming segment (Warner Bros. Interactive Entertainment, or WB Games )in a $4 billion deal.
According to CNBC, AT&T wants to reduce its $165 billion debt. Potential buyers could be Take-Two Interactive Software , Activision Blizzard and Electronic Arts .
The gaming business was acquired as part of the 2018 buyout of Time Warner assets by AT&T.
The COVID-19 crisis has impacted AT&T’s revenue, especially as several television advertisers are apparently postponing/calling off deals with broadcast and cable outlets.
T's in Downtrend: Moving Average Convergence Divergence (MACD) Histogram crosses below signal line
This is a Bearish indicator signaling T's price could decline. Traders may explore shorting the ticker or looking at put options. In 26 of 48 cases where T's MACD histogram became negative, the price fell further within the following month. The odds of a continued Downtrend are 54%.
Current price $30.48 crossed the resistance line at $30.28 and is trading between $30.55 resistance and $30.28 resistance lines. Throughout the month of 05/12/20 - 06/12/20, the price experienced a +6% Uptrend, while the week of 06/05/20 - 06/12/20 shows a -7% Downtrend.
Technical Analysis (Indicators)
Bearish Trend Analysis
The RSI Indicator appears to be shifting from an Uptrend to a Downtrend. In 13 of 29 cases where T's RSI indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 45%.
The Momentum Indicator moved below the 0 level on June 11, 2020. Traders may consider selling the ticker, shorting the ticker, or exploring put options. In 41 of 81 cases where T's Momentum Indicator fell below the 0 level, its price fell further within the subsequent month. The odds of a continued Downtrend are 51%.
The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 17 of 41 cases where T's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 41%.
Bullish Trend Analysis
The Stochastic Indicator is in the oversold zone -- be on the watch for T's price rising or consolidating in the future. At that time, consider buying the ticker or exploring call options.
The price moved above its 50-day Moving Average, which indicates a change from a Downtrend to an Uptrend. In 17 of 37 similar backtested cases where T's price crossed above its 50-day Moving Average, its price rose further within the subsequent month. The odds of a continued Uptrend are 46%.
The 10-day Moving Average for this ticker crossed above its 50-day Moving Average on May 28, 2020, which can be construed as a buy signal, indicating that the trend is shifting higher. In 7 of 18 similar cases where T's 10-day Moving Average crossed above its 50-day Moving Average, the price rose further within the following month. The odds of a continued Uptrend are 39%.
The Aroon Indicator entered an Uptrend today. In 105 of 282 similar cases where T Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 37%.
Fundamental Analysis (Ratings)
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 71%. During the last month, the daily ratio of advancing to declining volumes was 1.82 to 1.
The Tickeron Profit vs. Risk Rating rating for this company is 67 (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 73, placing this stock better than average.
The Tickeron SMR rating for this company is 62 (best 1 - 100 worst), indicating slightly weaker than average sales and a marginally 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 59 (best 1 - 100 worst), indicating fairly steady price growth. T’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 22 (best 1 - 100 worst), pointing to outstanding 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 Valuation Rating of 7 (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 (1.22) is normal, around the industry mean (1.75). P/E Ratio (15.44) is within average values for comparable stocks, (655.67). Projected Growth (PEG Ratio) (0.00) is also within normal values, averaging (8.69). T has a moderately high Dividend Yield (5.25) as compared to the industry average of (2.59). P/S Ratio (1.17) is also within normal values, averaging (1.86).