Verizon Communications (NYSE:VZ) Shares Down 1% - Should You Sell?

Key Points

• Verizon Communications' shares fell 1% to $44.56, trading significantly below its average volume with over 5 million shares exchanged.
• Analysts have mixed views with several upgrades; the stock holds an average rating of Moderate Buy and a target price of $47.35.
• Verizon recently reported Q2 earnings per share (EPS) of $1.22, exceeding estimates, along with a dividend payout ratio of 63.17% and a dividend yield of 6.1%.

Shares of Verizon Communications Inc. (NYSE:VZ - Get Free Report) fell 1% on Friday . The stock traded as low as $44.42 and last traded at $44.56. 5,040,671 shares changed hands during mid-day trading, a decline of 76% from the average session volume of 21,309,180 shares. The stock had previously closed at $45.03.

Analyst Ratings Changes

Several brokerages have weighed in on VZ. Arete Research upgraded Verizon Communications to a "strong-buy" rating in a research report on Tuesday, July 8th. Morgan Stanley boosted their price objective on Verizon Communications from $47.00 to $48.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 22nd. Tigress Financial boosted their target price on Verizon Communications from $55.00 to $56.00 and gave the company a "buy" rating in a research note on Monday, April 28th. Wall Street Zen raised Verizon Communications from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th. Finally, Wells Fargo & Company boosted their target price on Verizon Communications from $42.00 to $43.00 and gave the company an "equal weight" rating in a research note on Thursday, July 10th. Three research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and eleven have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $47.35.

Verizon Communications Stock Performance

The firm has a market cap of $187.14 billion, a PE ratio of 10.35, a PEG ratio of 3.47 and a beta of 0.36. The company has a current ratio of 0.64, a quick ratio of 0.60 and a debt-to-equity ratio of 1.19. The firm's 50 day simple moving average is $42.77 and its 200 day simple moving average is $43.07.

Verizon Communications (NYSE:VZ - Get Free Report) last announced its earnings results on Monday, July 21st. The cell phone carrier reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.19 by $0.03. The firm had revenue of $34.50 billion for the quarter, compared to analysts' expectations 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% compared to the same quarter last year. During the same period in the prior year, the company earned $1.15 EPS. Verizon Communications has set its FY 2025 guidance at 4.636-4.728 EPS. On average, research analysts forecast that Verizon Communications Inc. will post 4.69 EPS for the current fiscal year.

Verizon Communications Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 1st. Stockholders of record on Thursday, July 10th were given a dividend of $0.6775 per share. This represents a $2.71 annualized dividend and a dividend yield of 6.1%. The ex-dividend date was Thursday, July 10th. Verizon Communications's dividend payout ratio is currently 63.17%.

Institutional Trading of Verizon Communications

Hedge funds have recently made changes to their positions in the business. Bernard Wealth Management Corp. raised its position in Verizon Communications by 81.0% in the 1st quarter. Bernard Wealth Management Corp. now owns 543 shares of the cell phone carrier's stock worth $25,000 after purchasing an additional 243 shares during the period. Bulwark Capital Corp purchased a new stake in Verizon Communications in the 2nd quarter worth about $25,000. Cherry Tree Wealth Management LLC raised its position in Verizon Communications by 71.8% in the 1st quarter. Cherry Tree Wealth Management LLC now owns 584 shares of the cell phone carrier's stock worth $26,000 after purchasing an additional 244 shares during the period. Garde Capital Inc. purchased a new stake in Verizon Communications in the 1st quarter worth about $26,000. Finally, Advantage Trust Co raised its position in Verizon Communications by 549.5% in the 2nd quarter. Advantage Trust Co now owns 591 shares of the cell phone carrier's stock worth $26,000 after purchasing an additional 500 shares during the period. 62.06% of the stock is currently owned by hedge funds and other 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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