Verizon Communications (NYSE:VZ) Shares Down 1.3% on Analyst Downgrade

Key Points

• Verizon Communications shares fell 1.3% following an analyst downgrade by BNP Paribas Exane from an outperform to a neutral rating, now with a price target of $44.00.
• Institutional investors hold 62.06% of Verizon's stock, indicating significant interest among large stakeholders, with recent changes in positions from various funds.
• Verizon announced a quarterly dividend increase to $0.69 per share, reflecting a positive sign for shareholders with a yield of 6.9%.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) fell 1.3% during mid-day trading on Tuesday after BNP Paribas Exane downgraded the stock from an outperform rating to a neutral rating. BNP Paribas Exane now has a $44.00 price target on the stock. Verizon Communications traded as low as $40.13 and last traded at $40.29. 29,770,328 shares were traded during mid-day trading, an increase of 39% from the average session volume of 21,481,074 shares. The stock had previously closed at $40.80.

A number of other analysts have also issued reports on VZ. Bank of America raised their target price on shares of Verizon Communications from $45.00 to $49.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 22nd. Arete Research raised shares of Verizon Communications to a "strong-buy" rating in a research note on Tuesday, July 8th. Wall Street Zen downgraded shares of Verizon Communications from a "buy" rating to a "hold" rating in a research note on Friday, September 26th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Verizon Communications in a research note on Wednesday, October 8th. Finally, The Goldman Sachs Group initiated coverage on shares of Verizon Communications in a research note on Tuesday, September 2nd. They set a "buy" rating and a $49.00 price target on the stock. Three analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and twelve have given a Hold rating to the company. According to data from MarketBeat, Verizon Communications presently has an average rating of "Moderate Buy" and a consensus price target of $47.41.

Institutional Investors Weigh In On Verizon Communications

A number of large investors have recently added to or reduced their stakes in VZ. Bulwark Capital Corp acquired a new position in Verizon Communications during the 2nd quarter valued at about $25,000. Garde Capital Inc. acquired a new position in Verizon Communications during the 1st quarter valued at about $26,000. Advantage Trust Co boosted its stake in Verizon Communications by 549.5% during the 2nd quarter. Advantage Trust Co now owns 591 shares of the cell phone carrier's stock valued at $26,000 after purchasing an additional 500 shares during the period. TruNorth Capital Management LLC boosted its stake in Verizon Communications by 95.3% during the 3rd quarter. TruNorth Capital Management LLC now owns 625 shares of the cell phone carrier's stock valued at $27,000 after purchasing an additional 305 shares during the period. Finally, 1 North Wealth Services LLC acquired a new position in Verizon Communications during the 1st quarter valued at about $29,000. 62.06% of the stock is owned by institutional investors and hedge funds.

Verizon Communications Price Performance

The company has a debt-to-equity ratio of 1.19, a quick ratio of 0.60 and a current ratio of 0.64. The business's 50 day simple moving average is $43.18 and its 200-day simple moving average is $43.06. The stock has a market capitalization of $169.88 billion, a price-to-earnings ratio of 9.39, a price-to-earnings-growth ratio of 3.06 and a beta of 0.37.

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

Verizon Communications Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, November 3rd. Shareholders of record on Friday, October 10th will be given a dividend of $0.69 per share. This is a positive change from Verizon Communications's previous quarterly dividend of $0.68. The ex-dividend date is Friday, October 10th. This represents a $2.76 dividend on an annualized basis and a dividend yield of 6.9%. Verizon Communications's payout ratio is presently 64.34%.

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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