Analysts Are Downgrading These 5 Stocks After Weak Earnings Reports

1. AT&T Inc. (NYSE:T)

Number of Hedge Fund Holders: 74

AT&T Inc. (NYSE:T) is a Dallas, Texas-based telecom operator that reported its Q2 2022 results on July 21.

Although AT&T Inc. (NYSE:T) reported upbeat earnings but the reduction in free cash flow guidance heavily weighed on the stock. The company lowered its 2022 free cash flow (FCF) guidance from $16 billion to $14 billion as the US consumers are taking longer to settle their bills, and the cost of acquiring a new customer is constantly rising and putting the business under pressure. AT&T Inc. (NYSE:T) intends to generate $10 billion in FCF during the second half of the year to achieve its 2022 FCF guidance.

Following the results, Kannan Venkateshwar at Barclays downgraded AT&T Inc. (NYSE:T) stock from an Overweight to an Equal Weight rating and slashed the target price from $22 to $20. The analyst highlighted that the management’s commentary about the coming quarters would raise concern across the telecom sector.

Of the 912 hedge funds in Insider Monkey’s database, 74 funds held a stake in AT&T Inc. (NYSE:T) as of Q1 2022, up from 70 in the previous quarter.

You can also take a peek at the 10 Hedge Funds That the Economic Recession is Crushing and 10 Semiconductor Stocks that Analysts Are Slashing Price Targets Of.

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