5 Cheap Value Stocks Hedge Funds are Buying in 2022

In this article, we discuss 5 cheap value stocks hedge funds are buying in 2022. If you want to see more cheap value stocks on the radar of institutional investors, click 10 Cheap Value Stocks Hedge Funds are Buying in 2022. 

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

Number of Hedge Fund Holders: 74

P/E Ratio as of May 27: 8.98

Share Price as of May 27: $21.29

AT&T Inc. (NYSE:T) is a Texas-based telecommunications, media, and technology services provider. Elite hedge funds increased their hold on AT&T Inc. (NYSE:T) in 2022. The database of Insider Monkey suggests that 74 hedge funds were bullish on the stock at the end of March 2022, up from 70 funds in the last quarter. Arrowstreet Capital is the biggest position holder in the company, with 28.7 million shares worth $678.5 million. 

On April 25, RBC Capital analyst Kutgun Maral maintained a Sector Perform rating on AT&T Inc. (NYSE:T) and slashed the price target on the stock to $20 from $30. The analyst is optimistic about AT&T Inc. (NYSE:T)’s ability to deliver “strong” subscriber growth across wireless with its 7th consistent quarter of over 600,000 postpaid phone net adds as well as fiber. However, he prefers to see “proof points” in the company’s strategy against “increasingly competitive” markets.

AT&T Inc. (NYSE:T) reported its Q1 financial results on April 21, announcing earnings per share of $0.77, beating market estimates by $0.02. The $38.11 billion revenue, however, fell short of analysts’ predictions by $129.79 million. 

Here is what Weitz Investment Management Hickory Fund has to say about AT&T Inc. (NYSE:T) in its Q4 2021 investor letter:

“After several quarters of pandemic-induced outsized growth, new broadband connection growth has slowed for U.S. cable operators. This slower growth has coincided with a renewed push by competitors like Verizon and AT&T to offer high-speed data (either via wireless connections or by building new fiber-optic networks).”