Verizon Communications (NYSE:VZ) Shares Down 1.4% – Should You Sell?

by · The Markets Daily

Shares of Verizon Communications Inc. (NYSE:VZ – Get Free Report) dropped 1.4% during mid-day trading on Monday . The stock traded as low as $50.36 and last traded at $50.4060. Approximately 28,986,316 shares changed hands during mid-day trading, a decline of 14% from the average daily volume of 33,808,539 shares. The stock had previously closed at $51.12.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the stock. KeyCorp reiterated a “sector weight” rating on shares of Verizon Communications in a research note on Monday, January 26th. JPMorgan Chase & Co. raised their price target on Verizon Communications from $47.00 to $49.00 and gave the stock a “neutral” rating in a research note on Tuesday, February 3rd. Weiss Ratings upgraded Verizon Communications from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, February 5th. William Blair raised Verizon Communications to an “outperform” rating in a report on Monday, February 2nd. Finally, Citigroup raised their target price on Verizon Communications from $48.00 to $50.00 and gave the stock a “buy” rating in a research report on Tuesday, February 3rd. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $49.28.

Check Out Our Latest Analysis on Verizon Communications

Verizon Communications Price Performance

The firm has a market cap of $212.60 billion, a PE ratio of 12.45, a P/E/G ratio of 2.14 and a beta of 0.30. The firm’s fifty day simple moving average is $44.40 and its two-hundred day simple moving average is $42.59. The company has a quick ratio of 0.87, a current ratio of 0.91 and a debt-to-equity ratio of 1.32.

Verizon Communications (NYSE:VZ – Get Free Report) last announced its quarterly earnings data on Friday, January 30th. The cell phone carrier reported $1.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.06 by $0.03. Verizon Communications had a net margin of 12.43% and a return on equity of 19.03%. The firm had revenue of $36.38 billion during the quarter, compared to analysts’ expectations of $36.20 billion. During the same period in the prior year, the company posted $1.10 earnings per share. The company’s revenue for the quarter was up 2.0% compared to the same quarter last year. Verizon Communications has set its FY 2026 guidance at 4.900-4.950 EPS. As a group, research analysts expect that Verizon Communications Inc. will post 4.69 EPS for the current year.

Verizon Communications Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 1st. Shareholders of record on Friday, April 10th will be issued a dividend of $0.7075 per share. This is a boost from Verizon Communications’s previous quarterly dividend of $0.69. This represents a $2.83 dividend on an annualized basis and a yield of 5.6%. The ex-dividend date of this dividend is Friday, April 10th. Verizon Communications’s payout ratio is 68.15%.

Insider Activity

In related news, Director Hans Erik Vestberg sold 200,000 shares of the stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $49.61, for a total transaction of $9,922,000.00. Following the completion of the sale, the director owned 145,069 shares in the company, valued at approximately $7,196,873.09. This trade represents a 57.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Mary-Lee Stillwell sold 8,569 shares of Verizon Communications stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $50.00, for a total value of $428,450.00. Following the sale, the senior vice president directly owned 43,782 shares in the company, valued at $2,189,100. This trade represents a 16.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 218,148 shares of company stock worth $10,780,356 over the last ninety days. Corporate insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Verizon Communications

Institutional investors have recently added to or reduced their stakes in the stock. TruNorth Capital Management LLC boosted its position in shares of Verizon Communications by 95.3% during the third quarter. TruNorth Capital Management LLC now owns 625 shares of the cell phone carrier’s stock worth $27,000 after acquiring an additional 305 shares during the last quarter. Foster Dykema Cabot & Partners LLC purchased a new position in Verizon Communications during the third quarter valued at $29,000. Strengthening Families & Communities LLC increased its holdings in Verizon Communications by 490.0% in the 4th quarter. Strengthening Families & Communities LLC now owns 649 shares of the cell phone carrier’s stock valued at $26,000 after acquiring an additional 539 shares during the last quarter. Global Wealth Strategies & Associates increased its holdings in Verizon Communications by 739.5% in the 3rd quarter. Global Wealth Strategies & Associates now owns 680 shares of the cell phone carrier’s stock valued at $30,000 after acquiring an additional 599 shares during the last quarter. Finally, Holos Integrated Wealth LLC purchased a new stake in Verizon Communications in the 4th quarter worth $28,000. 62.06% of the stock is owned by hedge funds and other institutional investors.

About Verizon Communications

(Get Free Report)

Verizon Communications Inc (NYSE: VZ) is a major U.S.-based telecommunications company that provides a broad range of communications and information services. Its operations span consumer and business markets, with core offerings that include wireless voice and data services, fixed-line broadband and fiber-optic services, and enterprise networking solutions. Verizon is headquartered in New York City and operates a nationwide wireless network that supports consumer subscribers as well as business and government customers.

The company’s consumer products include mobile phone plans, unlimited data services, and Fios, its branded fiber-optic internet, television and voice service for homes and small businesses.

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