AT&T Stock Breaks Down to Lowest Levels in 2017

AT&T Inc. shares have fallen more than 5% since the beginning of the week, extending the stock’s precipitous decline dating back to late August. With both positive and negative fundamental catalysts, the stock has been stuck in a technical downtrend since mid-March, with a brief relief rally last month. Long-term investors seem reluctant to step into the stock at this point, which has kept traders confident in maintaining a bearish bias.

AT&T has been undergoing a lot of changes in recent months, with its proposed acquisition of Time Warner Inc. for $85 billion and the rollout of 5G in select U.S. cities. With a large amount of potential new debt, the company’s attractive dividend yield may have become riskier for some long-term investors. The positive news for AT&T is that the Time Warner transaction is expected to be accretive in the first year on an adjusted earnings per share and free cash flow per share basis. (See also: Time Warner CEO: AT&T Deal Was About Competing With Facebook, Google.)

AT&T shares hit their lowest mark this year, but traders should watch these key support and resistance levels. …read more

Read more here: AT&T Stock Breaks Down to Lowest Levels in 2017

Category: T, TWX

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