Verizon Communications (NYSE:VZ) Shares Down 0.9% - Should You Sell?

Verizon Communications Inc. (NYSE:VZ - Get Free Report) shares dropped 0.9% on Monday . The company traded as low as $39.76 and last traded at $39.90. Approximately 8,473,704 shares changed hands during trading, a decline of 43% from the average daily volume of 14,903,037 shares. The stock had previously closed at $40.26.

Wall Street Analysts Forecast Growth

VZ has been the subject of a number of recent analyst reports. Sanford C. Bernstein assumed coverage on shares of Verizon Communications in a research note on Tuesday, December 10th. They issued a "market perform" rating and a $48.00 price target for the company. StockNews.com downgraded shares of Verizon Communications from a "strong-buy" rating to a "buy" rating in a research note on Monday, December 16th. Scotiabank boosted their price target on Verizon Communications from $46.50 to $47.25 and gave the stock a "sector perform" rating in a research report on Friday, October 18th. UBS Group raised their price objective on Verizon Communications from $44.00 to $45.00 and gave the company a "neutral" rating in a research report on Friday, December 20th. Finally, Royal Bank of Canada boosted their target price on Verizon Communications from $42.00 to $46.00 and gave the stock a "sector perform" rating in a report on Monday, September 23rd. Ten analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. According to MarketBeat.com, Verizon Communications has an average rating of "Hold" and an average target price of $46.54.

Verizon Communications Stock Down 1.7 %

The firm's 50-day moving average price is $41.56 and its 200 day moving average price is $41.86. The company has a current ratio of 0.66, a quick ratio of 0.62 and a debt-to-equity ratio of 1.32. The company has a market capitalization of $166.66 billion, a price-to-earnings ratio of 17.06, a PEG ratio of 3.05 and a beta of 0.46.

Verizon Communications (NYSE:VZ - Get Free Report) last released its earnings results on Tuesday, October 22nd. The cell phone carrier reported $1.19 earnings per share for the quarter, topping the consensus estimate of $1.18 by $0.01. Verizon Communications had a return on equity of 20.05% and a net margin of 7.30%. The firm had revenue of $33.30 billion during the quarter, compared to analysts' expectations of $33.42 billion. During the same period in the prior year, the company earned $1.22 earnings per share. The company's quarterly revenue was up .9% on a year-over-year basis. On average, sell-side analysts forecast that Verizon Communications Inc. will post 4.61 EPS for the current fiscal year.

Verizon Communications Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, February 3rd. Stockholders of record on Friday, January 10th will be paid a $0.6775 dividend. The ex-dividend date is Friday, January 10th. This represents a $2.71 dividend on an annualized basis and a dividend yield of 6.85%. Verizon Communications's payout ratio is currently 116.81%.

Hedge Funds Weigh In On Verizon Communications

A number of institutional investors have recently added to or reduced their stakes in the stock. Capital Performance Advisors LLP acquired a new position in shares of Verizon Communications during the third quarter worth $31,000. Accordant Advisory Group Inc increased its holdings in Verizon Communications by 137.6% in the 3rd quarter. Accordant Advisory Group Inc now owns 777 shares of the cell phone carrier's stock worth $35,000 after purchasing an additional 450 shares in the last quarter. MidAtlantic Capital Management Inc. acquired a new position in Verizon Communications in the 3rd quarter worth about $44,000. McClarren Financial Advisors Inc. raised its position in Verizon Communications by 762.6% in the third quarter. McClarren Financial Advisors Inc. now owns 1,061 shares of the cell phone carrier's stock valued at $48,000 after purchasing an additional 938 shares during the last quarter. Finally, Legacy Investment Solutions LLC acquired a new stake in shares of Verizon Communications during the third quarter valued at about $48,000. 62.06% of the stock is currently owned by institutional investors and hedge funds.

Verizon Communications Company Profile

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).