Orin
TNYSE·Telecommunications Services

AT&T Inc. T

Market cap $176.1BP/E 8.4× trailingGross margin 59.7%Reports Wed 21 Oct, before the open
$25.70
+0.41 (+1.60%)live 09:35 ET
52-wk $19.89 – $29.44
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Orin's take
0.62conviction · moderate
Refreshed 30 Aug · take v6. A new filing or a print queues the next refresh.

AT&T's FY2025 turnaround is genuine — EPS doubled to $3.04 from $1.49, revenue grew 2.71% to $125.6B, and free cash flow reached $19.4B — while the stock trades at 8.58x earnings and 6.02x EV/EBITDA, roughly 27–34% below peer medians. However, after rallying to $26.01 (above both the 50-day MA of $23.17 and 200-day MA of $25.13), RSI has reached 68.9 and smart-money flows turned slightly negative at -0.0972 as of Q2 2026 with fund count declining from 67 to 64, suggesting much of the recovery is now priced in.

The hold reflects an intact fundamental story but an extended near-term technical setup paired with mixed institutional and insider signals — net insider selling of $104.2M over 24 months — making risk/reward balanced at current levels.

What could go wrong

  • Debt load. Total debt rose to $174B in FY2025 from $140.9B in FY2024, a $33B single-year increase; while operating cash flow of $40.3B services it, rising rates or refinancing pressure could constrain capital returns.
  • Smart-money outflows. Smart-money score turned negative at -0.0972 as of 2026-06-30 with fund count falling from 67 to 64, reversing the positive trend seen in early 2025 when the score was +0.1936.
  • Technical overextension. RSI at 68.9 and the stock trading 12% above its 50-day MA ($23.17) leave little room for upside before overbought conditions trigger profit-taking.
  • Insider net selling. Over the trailing 24 months insiders net sold approximately 1.38M shares worth $104.2M, with recent July 2026 acquisitions being small deferred-unit grants rather than meaningful open-market buys.

What would change my mind

Q3 2026 earnings. AT&T reports Q3 2026 results on Oct 21; sustained postpaid net additions and FCF guidance reaffirmation would validate the turnaroundbullish
Smart-money reversal. 13F composite for Q3 2026 (available ~Nov 14) shows smart-money score returning to positive territory with rising fund countbullish
Debt trajectory. Q3 2026 balance sheet shows total debt declining from the $174B FY2025 peak, indicating deleveraging is on trackbullish
Technical breakdown. Stock closes below the 50-day MA of $23.17 on rising volume, signaling the momentum rally has exhaustedbearish

Where this comes from: FMP annual fundamentals FY2025 vs FY2024 · FMP annual fundamentals + derived_metrics FY2025 · FMP annual fundamentals FY2025 · peer_relative composite. Orin's read on T; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$9.4B0.2% of fund
State Street$6.9B0.2% of fund
Geode Capital Management$3.7B0.2% of fund
Vanguard Portfolio Management$2.8B0.1% of fund
Bank Of America /De/$2.3B0.1% of fund
Morgan Stanley$2.2B0.1% of fund

134 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 359 Form 4 filings, net −$104.1M. Of the 50 on hand, none was an open-market trade— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Communication Services
MetricNowOwn medianSector
P/E8.4×26.3×
EV/EBITDA5.9×6.1×
P/S1.36×1.09×
P/B1.6×1.4×

Its P/E sits 60th percentile of its own last 5 years (+0.37σ from its own mean).

What the price assumes

-3.5%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $19.4B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

62 firms · 2026-09-23
Consensus target

$27

$20$30 · +4% against today's price

How they rate it
  • 27 buy or overweight
  • 29 hold
  • 6 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 12.1× of 5 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
TAT&T Inc.$174B8.4×5.9×59.7%16.9%19%
CHTRCharter Communications, Inc.$16B3.0×5.6×56.6%9.1%30%
CMCSAComcast Corporation$80B7.3×4.8×69.4%9.0%12%
DISThe Walt Disney Company$180B21.3×9.5×37.6%8.7%8%
TMUST-Mobile US, Inc.$178B17.3×10.3×54.5%11.5%18%
VZVerizon Communications Inc.$194B12.1×7.9×59.1%11.6%16%

The median is of the 5 peers listed above and nothing else — check it against the column. This company trades 31.0% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 20.4×FY25 8.2×

What its sector has traded at

Communication Services
FY14 34.0×FY26 29.1×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$287$23.14 · +1141%2026-06-10
Levered DCF$168$23.14 · +624%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $25.70
52-week range$20 – $29
Analyst targets$20 – $30
Standard DCF$287 as of 2026-06-10, when it was $23.14
Levered DCF$168 as of 2026-06-10, when it was $23.14
At own 5y-median P/E (8×)$25
At 5y P/E range (-15–15×)$-47 – $45
At sector P/E (26×)$80

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.