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AT&T shares close higher on Monday, company finalizes sale of Puerto Rico and US Virgin Islands operations to Liberty Latin America

AT&T Inc (T) said on Monday that it had finalized the sale of its wireless and wireline operations in Puerto Rico and the US Virgin Islands to Liberty Latin America for $1.95 billion in cash.

AT&T shares closed higher for a third consecutive trading session in New York on Monday. The stock went up 1.18% ($0.32) to $27.34, after touching an intraday high at $27.60, or a price level not seen since October 26th ($27.65).

Shares of AT&T Inc have retreated 30.04% so far in 2020 compared with a 2.46% gain for the benchmark index, S&P 500 (SPX).

In 2019, AT&T Inc’s stock went up 36.93%, thus, it outperformed the S&P 500, which registered a 28.88% gain.

The transaction encompasses employees, network assets and spectrum, real estate and leases, client base (including over 1 million wireless subscribers) as well as contracts, the company said.

AT&T Inc also said that it expected to retain DIRECTV and particular global business customer relationships and FirstNet responsibilities and relationships.

The proceeds from the deal will be used for redemption of all of the preferred interests in AT&T’s subsidiary, PR Holdings.

Analyst stock price forecast and recommendation

According to CNN Money, the 24 analysts, offering 12-month forecasts regarding AT&T Inc’s stock price, have a median target of $31.50, with a high estimate of $38.00 and a low estimate of $17.00. The median estimate represents a 15.22% upside compared to the closing price of $27.34 on November 2nd.

The same media also reported that at least 17 out of 29 surveyed investment analysts had rated AT&T Inc’s stock as “Hold”, while 7 – as “Buy”. On the other hand, 4 analysts had recommended selling the stock.

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