AT&T stock (ticker: T) has experienced a significant decline in 2023, prompting director Stephen J. Luczo to acquire a large block of shares in the media and telecom firm.
Despite the S&P 500 index's impressive gain of nearly 18% this year, AT&T stock has dropped by approximately 12%. While the company's quarterly earnings reports have remained strong, concerns regarding AT&T's potential liability regarding legacy lead-lined wires have contributed to a 30-year low in share prices as of July. The Wall Street Journal reported toxic lead contamination in cable networks across the U.S., leading to worries over potential harm. In response, AT&T has stated that this report contradicts both independent expert opinions and well-established scientific understanding of lead-clad telecom cables, as well as their own testing results.
On November 13, Luczo purchased 62,500 AT&T shares at an average price of $15.55 each, amounting to a total of $971,875. The transaction was made through a trust, bringing the trust's total AT&T share holdings to 395,500. In addition, Luczo owns another 167,000 AT&T shares through a separate trust.
Luczo serves as a managing partner at private-equity firm Crosspoint Capital Partners. Despite attempts to contact the firm for comment on Luczo's AT&T stock purchase, no response was received. Luczo was previously the chairman and CEO of hard-drive maker Seagate Technology Holdings (STX).
This recent acquisition follows Luczo's previous open market purchase in November 2021, where he spent $2.5 million to obtain 100,000 AT&T shares at an average price of $25.04 each.
Inside Scoop is a regular feature highlighting stock transactions by corporate executives, board members, major shareholders, politicians, and notable figures. These individuals, due to their insider status, are required to disclose their stock trades to regulatory bodies such as the Securities and Exchange Commission.