Verizon Communications (NYSE:VZ) Share Price Breaks Above 50-Day Moving Average - Time to Sell?

Key Points

• Verizon shares edged above their 50-day moving average, trading at $46.59 versus the average of $46.39; the 200-day average was $47.00.
• Quarterly EPS of $1.31 topped the $1.27 estimate, while revenue of $34.31 billion fell short of forecasts. The company also reported 1.5% year-over-year revenue growth.
• Analysts’ consensus rating is Hold, with a $51.05 average price target. Verizon’s quarterly dividend annualizes to $2.83 per share, a stated yield of 6.1%.

Verizon Communications Inc. (NYSE:VZ - Get Free Report)'s stock price crossed above its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of $46.39 and traded as high as $46.61. Verizon Communications shares last traded at $46.59, with a volume of 15,026,844 shares trading hands.

Key Verizon Communications News

These are some of the VZ news items that stood out recently:

• Positive Sentiment: Verizon Business and Thames Freeport have launched a large private 5G network for ports, logistics and manufacturing sites. The project could support enterprise growth, though no financial contribution was disclosed. Verizon Business, Thames Freeport complete one of Europe’s largest Private 5G implementations
• Positive Sentiment: Recent coverage points to strong operating momentum: Verizon added 406,000 postpaid phone customers in the third quarter, its best third quarter in five years, and raised its guidance for a third consecutive quarter. The article also says the stock recovered its October decline amid the SpaceX spectrum deal. Verizon Just Gained 11% in a Month: “Only One Year Into a Multi-Year Growth Story”
• Neutral Sentiment: Reports have revived speculation that SpaceX might pursue a large U.S. wireless operator, with Verizon mentioned as a possible target. This remains unconfirmed and may contribute to investor interest, but is not a reported deal. Verizon Communications (VZ) Lands Thames Freeport 5G Role As Takeover Talk Returns

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Sanford C. Bernstein lowered their price objective on shares of Verizon Communications from $47.00 to $45.00 in a research report on Tuesday, October 13th. Moffett Nathanson increased their price objective on Verizon Communications from $49.00 to $50.00 and gave the stock a "neutral" rating in a report on Tuesday, September 22nd. The Goldman Sachs Group reduced their price target on Verizon Communications from $51.00 to $47.00 in a research report on Tuesday, October 27th. BNP Paribas Exane cut their price objective on shares of Verizon Communications from $46.00 to $45.00 in a research report on Tuesday, October 27th. Finally, Royal Bank Of Canada boosted their price target on shares of Verizon Communications from $46.00 to $47.00 and gave the stock a "sector perform" rating in a research report on Monday, July 27th. Thirteen equities research analysts have rated the stock with a Buy rating and sixteen have given a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $51.05.

Verizon Communications Stock Performance

The company's 50 day moving average is $46.39 and its 200 day moving average is $47.00. The firm has a market cap of $193.10 billion, a P/E ratio of 11.89, a P/E/G ratio of 1.88 and a beta of 0.28. The company has a debt-to-equity ratio of 1.33, a quick ratio of 0.58 and a current ratio of 0.63.

Verizon Communications (NYSE:VZ - Get Free Report) last issued its quarterly earnings data on Monday, October 26th. The cell phone carrier reported $1.31 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.27 by $0.04. The business had revenue of $34.31 billion during the quarter, compared to analyst estimates of $34.77 billion. Verizon Communications had a net margin of 11.78% and a return on equity of 19.75%. The firm's quarterly revenue was up 1.5% on a year-over-year basis. During the same quarter last year, the business earned $1.21 EPS. As a group, equities analysts predict that Verizon Communications Inc. will post 5.07 earnings per share for the current fiscal year.

Verizon Communications Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, November 2nd. Investors of record on Friday, October 9th were paid a dividend of $0.7075 per share. The ex-dividend date of this dividend was Friday, October 9th. This represents a $2.83 annualized dividend and a yield of 6.1%. Verizon Communications's dividend payout ratio is currently 72.19%.

Insiders Place Their Bets

In other news, CEO Kyle Malady sold 1,100 shares of the company's stock in a transaction dated Tuesday, October 27th. The shares were sold at an average price of $43.00, for a total transaction of $47,300.00. Following the transaction, the chief executive officer owned 98,866 shares in the company, valued at approximately $4,251,238. This represents a 1.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 11,000 shares of company stock valued at $516,373 over the last ninety days. Insiders own 0.03% of the company's stock.

Institutional Investors Weigh In On Verizon Communications

Several hedge funds and other institutional investors have recently modified their holdings of the company. Patron Partners LLC boosted its position in shares of Verizon Communications by 5.4% during the third quarter. Patron Partners LLC now owns 25,218 shares of the cell phone carrier's stock valued at $1,157,000 after buying an additional 1,284 shares during the last quarter. Red Oak Financial Group LLC bought a new stake in Verizon Communications during the third quarter worth $210,000. Mayflower Financial Advisors LLC raised its position in Verizon Communications by 0.3% in the 3rd quarter. Mayflower Financial Advisors LLC now owns 157,097 shares of the cell phone carrier's stock valued at $7,206,000 after buying an additional 496 shares during the last quarter. Advisors Asset Management Inc. purchased a new stake in Verizon Communications in the 3rd quarter valued at $44,080,000. Finally, Edmond DE Rothschild Holding S.A. raised its position in Verizon Communications by 5.7% in the 3rd quarter. Edmond DE Rothschild Holding S.A. now owns 1,503,999 shares of the cell phone carrier's stock valued at $68,988,000 after buying an additional 80,459 shares during the last quarter. Institutional investors own 62.06% of the company's stock.

About Verizon Communications

Verizon Communications Inc. is a telecommunications company that provides wireless and wireline communications services in the United States. Its offerings include mobile voice and data plans, smartphones and other connected devices, broadband internet, and related services for consumers, businesses, and government customers. The company operates a nationwide wireless network and provides home internet through fiber-optic service, including Fios, and fixed wireless access. For business and public-sector customers, Verizon offers connectivity, networking, security, and Internet of Things services.

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