U.S. markets resumed trading Monday after the NYSE closed Friday for Independence Day. AT&T Inc. (NYSE:T) continued its slide for the fourth consecutive session, while the S&P 500 posted a 1.8% gain for the week. The Dow rose 2.0% and the Nasdaq added 2.1%, despite a chip selloff on Thursday.
AT&T shares ended Thursday at $20.58, marking a 9.4% decline from June 26. The stock briefly touched a new 52-week low of $19.89 during the week, according to some data feeds. Trading volume was exceptionally heavy, with approximately 483 million shares changing hands from Monday to Thursday—about 7% of the public float. Daily volume averaged roughly 2.5 times the norm, with three separate sessions exceeding 129 million shares.
The selloff was driven largely by concerns over SpaceX and its Starlink satellite network. Oppenheimer analyst Timothy Horan cut AT&T to Perform, warning that the industry may be underestimating the satellite threat. SpaceX is set to join the Nasdaq-100 on July 7, keeping the satellite story in focus for index trackers and telecom investors.
AT&T has pushed back against the narrative. CFO Pascal Desroches, speaking at a June Mizuho conference, argued that satellite is best suited for rural coverage—about 1% of the U.S. population without fiber, cable, or wireless infrastructure. He emphasized that urban and suburban networks still have a lower cost per bit.
Investors are now looking ahead to the July 10 dividend record date and the July 22 earnings report. AT&T maintained its Q2 free cash flow forecast of $4.0 billion to $4.5 billion and expects stronger year-over-year growth in wireless service revenue and adjusted EBITDA compared to Q1. Earnings will be released before the NYSE opens on July 22, with a call at 8:30 a.m. ET.
The quarterly dividend of $0.2775 per share, payable August 3 to shareholders of record on July 10, now yields approximately 5.4% based on the stock's closing price of $20.58. The lower share price has pushed the implied yield higher.
Despite the recent drop, AT&T remains attractively valued with a P/E ratio of 6.9. The average price target from analysts is $30.39, with ratings including 13 Buy, 3 Overweight, and 12 Hold.
