62K Reasons To Be Bullish On AT&T Stock

Jeffery McElfresh, Chief Operating Officer at AT&T T, disclosed an insider purchase on August 4, based on a new SEC filing.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday, McElfresh increased their investment in AT&T by purchasing 2,291 shares through open-market transactions, signaling confidence in the company's potential. The total transaction value is $62,812.

Tracking the Tuesday's morning session, AT&T shares are trading at $27.68, showing a down of 0.0%.

Discovering AT&T: A Closer Look

The wireless business contributes nearly 70% of AT&T's revenue. The company is the third-largest US wireless carrier, connecting 73 million postpaid and 17 million prepaid phone customers. Fixed-line enterprise services, which account for about 14% of revenue, include internet access, private networking, security, voice, and wholesale network capacity. Residential fixed-line services, about 12% of revenue, primarily consist of broadband internet access, serving 14 million customers. AT&T also has a sizable presence in Mexico, with 24 million customers, but this business only accounts for 3% of revenue. The company recently sold its 70% equity stake in satellite television provider DirecTV to its partner, private equity firm TPG.

AT&T: Delving into Financials

Revenue Growth: AT&T displayed positive results in 3 months. As of 30 June, 2025, the company achieved a solid revenue growth rate of approximately 3.52%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Communication Services sector.

Evaluating Earnings Performance:

• Gross Margin: The company faces challenges with a low gross margin of 60.61%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, AT&T exhibits below-average bottom-line performance with a current EPS of 0.62.

Debt Management: With a high debt-to-equity ratio of 1.43, AT&T faces challenges in effectively managing its debt levels, indicating potential financial strain.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: AT&T's P/E ratio of 15.82 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.61 is lower than the industry average, implying a discounted valuation for AT&T's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 7.28 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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The Relevance of Insider Transactions

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Navigating the World of Insider Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of AT&T's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.