AT&T announced better-than-expected third-quarter earnings and revenue
The shares of AT&T Inc (NYSE:T) are surging today, up 7.2% at $16.65 and earlier as high as $17.16, after the company's third-quarter earnings and revenue topped analyst expectations. The telecommunications name also lifted its full-year profit forecast, citing strong demand for its phone and internet services as well as a rebound in international travel.
On the charts, this bounce has T moving futher from its Oct. 13 record low of $14.46. Now above its 40-day moving average for the first time since its July bear gap -- which occurred after the company cut its annual forecast -- the equity is down 9.9% year-to-date.
Unsurprisingly, options traders are targeting the security at five times the intraday average volume. So far, 182,000 calls and 223,000 puts have been exchanged. The October 18 put is the most popular, followed by the March 17 put, with new positions being opened at both.
The brokerage bunch is split on AT&T stock. Of the 16 analysts in coverage, eight carry a "buy" or better rating, and eight a tepid "hold." Meanwhile, the 12-month consensus price target of $20.50 is a 23.5% premium to current levels.