Promethos Capital LLC Decreases Stake in Verizon Communications Inc. $VZ

Key Points

• Promethos Capital cut its Verizon stake by 36.3% in the second quarter, selling 48,944 shares and retaining 86,010 shares valued at approximately $3.64 million. Institutional investors collectively own 62.06% of Verizon.
• Analysts maintain a cautious outlook, with Verizon carrying a consensus “Hold” rating and an average price target of $50.84. Recent target changes ranged from $44 to $52.
• Verizon reported quarterly EPS of $1.30, beating estimates by $0.03, while revenue fell 0.7% year over year to $34.25 billion. The company also pays a quarterly dividend of $0.7075, equivalent to a 5.6% annualized yield.

Promethos Capital LLC lessened its position in shares of Verizon Communications Inc. (NYSE:VZ - Free Report) by 36.3% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 86,010 shares of the cell phone carrier's stock after selling 48,944 shares during the period. Verizon Communications comprises 1.0% of Promethos Capital LLC's investment portfolio, making the stock its 23rd biggest holding. Promethos Capital LLC's holdings in Verizon Communications were worth $3,642,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of VZ. Norges Bank purchased a new stake in shares of Verizon Communications during the 4th quarter worth $2,357,158,000. Bank of America Corp DE grew its stake in shares of Verizon Communications by 15.4% during the first quarter. Bank of America Corp DE now owns 62,101,021 shares of the cell phone carrier's stock worth $3,117,471,000 after purchasing an additional 8,289,877 shares in the last quarter. Bank of New York Mellon Corp increased its holdings in Verizon Communications by 31.2% in the fourth quarter. Bank of New York Mellon Corp now owns 31,584,162 shares of the cell phone carrier's stock valued at $1,286,423,000 after buying an additional 7,509,055 shares during the last quarter. State Street Corp increased its holdings in Verizon Communications by 3.5% in the fourth quarter. State Street Corp now owns 222,951,399 shares of the cell phone carrier's stock valued at $9,080,810,000 after buying an additional 7,461,335 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. raised its stake in Verizon Communications by 5.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 116,570,816 shares of the cell phone carrier's stock valued at $4,747,930,000 after buying an additional 5,851,715 shares in the last quarter. 62.06% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of analysts have issued reports on the company. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Verizon Communications in a report on Wednesday. BNP Paribas Exane dropped their price objective on Verizon Communications from $46.00 to $44.00 and set a "neutral" rating on the stock in a report on Tuesday, July 14th. Morgan Stanley raised their target price on Verizon Communications from $50.00 to $52.00 and gave the stock an "equal weight" rating in a research report on Monday, July 27th. Wells Fargo & Company boosted their target price on Verizon Communications from $43.00 to $47.00 and gave the stock an "equal weight" rating in a research note on Monday, July 27th. Finally, Royal Bank Of Canada upped their price target on Verizon Communications from $46.00 to $47.00 and gave the company a "sector perform" rating in a report on Monday, July 27th. Nine analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $50.84.

Insider Activity

In related news, CEO Kyle Malady sold 1,100 shares of the firm's stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $50.06, for a total transaction of $55,066.00. Following the transaction, the chief executive officer owned 108,766 shares in the company, valued at $5,444,825.96. This trade represents a 1.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.03% of the stock is currently owned by company insiders.

Verizon Communications Price Performance

Shares of NYSE:VZ opened at $50.11 on Friday. Verizon Communications Inc. has a 12 month low of $38.39 and a 12 month high of $51.68. The firm has a market capitalization of $208.20 billion, a P/E ratio of 13.05, a P/E/G ratio of 1.38 and a beta of 0.25. The company has a debt-to-equity ratio of 1.36, a current ratio of 0.60 and a quick ratio of 0.57. The company's fifty day moving average price is $45.91 and its 200 day moving average price is $47.42.

Verizon Communications (NYSE:VZ - Get Free Report) last released its quarterly earnings data on Friday, July 24th. The cell phone carrier reported $1.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.27 by $0.03. The company had revenue of $34.25 billion during the quarter, compared to the consensus estimate of $35.16 billion. Verizon Communications had a net margin of 11.64% and a return on equity of 19.48%. Verizon Communications's revenue for the quarter was down .7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.22 earnings per share. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS. As a group, sell-side analysts predict that Verizon Communications Inc. will post 5.03 earnings per share for the current fiscal year.

Verizon Communications Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, August 3rd. Stockholders of record on Friday, July 10th were issued a $0.7075 dividend. This represents a $2.83 annualized dividend and a dividend yield of 5.6%. The ex-dividend date of this dividend was Friday, July 10th. Verizon Communications's payout ratio is presently 73.70%.

About Verizon Communications

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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