Verizon Communications Inc. (NYSE:VZ) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Verizon Communications Inc. has received a consensus recommendation of "Moderate Buy" from 20 analysts, with target prices ranging up to $56 from various brokerages.
• The company reported earnings of $1.22 per share, exceeding expectations, along with a quarterly revenue of $34.50 billion, marking a year-over-year growth of 5.2%.
• Verizon recently declared a quarterly dividend of $0.6775, equating to an annualized dividend yield of 6.3% and a payout ratio of 63.17%.

Shares of Verizon Communications Inc. (NYSE:VZ - Get Free Report) have received an average rating of "Moderate Buy" from the twenty research firms that are presently covering the company, MarketBeat.com reports. Eleven analysts have rated the stock with a hold rating, six have given a buy rating and three have given a strong buy rating to the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $47.35.

A number of equities research analysts recently weighed in on VZ shares. Bank of America raised their price target on shares of Verizon Communications from $45.00 to $49.00 and gave the company a "neutral" rating in a report on Tuesday, July 22nd. Scotiabank raised their price target on shares of Verizon Communications from $48.50 to $49.00 and gave the company a "sector perform" rating in a report on Wednesday, April 23rd. Royal Bank Of Canada raised their price target on shares of Verizon Communications from $45.00 to $46.00 and gave the company a "sector perform" rating in a report on Tuesday, July 22nd. JPMorgan Chase & Co. raised their price target on shares of Verizon Communications from $47.00 to $49.00 and gave the company a "neutral" rating in a report on Tuesday, July 22nd. Finally, Tigress Financial increased their price objective on shares of Verizon Communications from $55.00 to $56.00 and gave the company a "buy" rating in a research note on Monday, April 28th.

Verizon Communications Price Performance

VZ opened at $42.84 on Friday. The company has a fifty day simple moving average of $42.75 and a 200 day simple moving average of $42.69. The firm has a market cap of $180.63 billion, a price-to-earnings ratio of 9.99, a PEG ratio of 3.31 and a beta of 0.36. Verizon Communications has a twelve month low of $37.58 and a twelve month high of $47.35. The company has a current ratio of 0.64, a quick ratio of 0.60 and a debt-to-equity ratio of 1.19.

Verizon Communications (NYSE:VZ - Get Free Report) last released its quarterly earnings results on Monday, July 21st. The cell phone carrier reported $1.22 earnings per share for the quarter, beating analysts' consensus estimates of $1.19 by $0.03. The business had revenue of $34.50 billion during the quarter, compared to analyst estimates of $33.47 billion. Verizon Communications had a net margin of 13.28% and a return on equity of 19.61%. The business's revenue was up 5.2% on a year-over-year basis. During the same period last year, the business earned $1.15 EPS. Equities research analysts expect that Verizon Communications will post 4.69 EPS for the current fiscal year.

Verizon Communications Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 1st. Stockholders of record on Thursday, July 10th were given a $0.6775 dividend. This represents a $2.71 dividend on an annualized basis and a dividend yield of 6.3%. The ex-dividend date was Thursday, July 10th. Verizon Communications's dividend payout ratio (DPR) is presently 63.17%.

Insider Activity

In other news, CEO Kyle Malady sold 9,000 shares of the firm's stock in a transaction dated Wednesday, May 7th. The shares were sold at an average price of $44.10, for a total value of $396,900.00. Following the transaction, the chief executive officer directly owned 10,008 shares in the company, valued at approximately $441,352.80. This trade represents a 47.35% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 0.10% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of VZ. Bank of Jackson Hole Trust lifted its position in Verizon Communications by 29.3% in the 2nd quarter. Bank of Jackson Hole Trust now owns 8,417 shares of the cell phone carrier's stock valued at $364,000 after purchasing an additional 1,906 shares during the last quarter. Jennison Associates LLC lifted its position in Verizon Communications by 141.6% in the 2nd quarter. Jennison Associates LLC now owns 36,139 shares of the cell phone carrier's stock valued at $1,564,000 after purchasing an additional 21,180 shares during the last quarter. Winebrenner Capital Management LLC lifted its position in Verizon Communications by 14.1% in the 2nd quarter. Winebrenner Capital Management LLC now owns 17,620 shares of the cell phone carrier's stock valued at $762,000 after purchasing an additional 2,180 shares during the last quarter. Austin Private Wealth LLC lifted its position in Verizon Communications by 7.7% in the 2nd quarter. Austin Private Wealth LLC now owns 11,653 shares of the cell phone carrier's stock valued at $504,000 after purchasing an additional 830 shares during the last quarter. Finally, Redmond Asset Management LLC lifted its position in Verizon Communications by 6.3% in the 2nd quarter. Redmond Asset Management LLC now owns 55,177 shares of the cell phone carrier's stock valued at $2,388,000 after purchasing an additional 3,252 shares during the last quarter. 62.06% of the stock is currently owned by institutional investors.

About Verizon Communications

Verizon Communications Inc, through its subsidiaries, engages in the provision of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business).

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