Verizon Communications (NYSE:VZ) Shares Down 2.8% - Here's What Happened

Key Points

• Shares fell 2.8% to about $40.14 intraday, with roughly 31.67 million shares traded—around 40% above the average daily volume.
• Analysts are mixed: Goldman Sachs initiated coverage with a "buy" and $49 target, but the consensus rating is "Hold" with an average price target of $47.41.
• Verizon declared a quarterly dividend of $0.69 (annualized $2.76) yielding about 6.9%, with an ex-dividend date of Jan. 12 and payment on Feb. 2.

Shares of Verizon Communications Inc. (NYSE:VZ - Get Free Report) were down 2.8% during trading on Tuesday . The stock traded as low as $40.11 and last traded at $40.1350. Approximately 31,669,499 shares were traded during mid-day trading, an increase of 40% from the average daily volume of 22,661,705 shares. The stock had previously closed at $41.30.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. The Goldman Sachs Group assumed 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 for the company. TD Cowen reduced their target price on shares of Verizon Communications from $56.00 to $51.00 and set a "buy" rating for the company in a report on Thursday, October 30th. Scotiabank raised their price target on Verizon Communications from $50.50 to $51.00 and gave the stock a "sector perform" rating in a report on Thursday, October 30th. BNP Paribas cut Verizon Communications from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, October 21st. Finally, JPMorgan Chase & Co. decreased their price objective on Verizon Communications from $49.00 to $47.00 and set a "neutral" rating for the company in a research report on Thursday, October 30th. Two research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and thirteen have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $47.41.

Verizon Communications Trading Down 2.8%

The firm has a market cap of $169.23 billion, a P/E ratio of 8.58, a P/E/G ratio of 3.72 and a beta of 0.33. The business's 50-day moving average is $40.70 and its two-hundred day moving average is $42.32. The company has a current ratio of 0.74, a quick ratio of 0.69 and a debt-to-equity ratio of 1.19.

Verizon Communications (NYSE:VZ - Get Free Report) last issued its earnings results on Wednesday, October 29th. The cell phone carrier reported $1.21 EPS for the quarter, beating analysts' consensus estimates of $1.19 by $0.02. The company had revenue of $33.82 billion during the quarter, compared to the consensus estimate of $34.19 billion. Verizon Communications had a return on equity of 19.31% and a net margin of 14.43%.Verizon Communications's quarterly revenue was up 1.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.19 earnings per share. As a group, analysts expect that Verizon Communications Inc. will post 4.69 earnings per share for the current fiscal year.

Verizon Communications Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, February 2nd. Shareholders of record on Monday, January 12th will be given a $0.69 dividend. The ex-dividend date of this dividend is Monday, January 12th. This represents a $2.76 annualized dividend and a yield of 6.9%. Verizon Communications's dividend payout ratio (DPR) is currently 58.97%.

Hedge Funds Weigh In On Verizon Communications

Several institutional investors have recently modified their holdings of the company. Bulwark Capital Corp bought a new stake in shares of Verizon Communications during the second quarter valued at approximately $25,000. Advantage Trust Co increased 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 valued at $26,000 after acquiring an additional 500 shares during the period. TruNorth Capital Management LLC raised 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 acquiring an additional 305 shares in the last quarter. 1 North Wealth Services LLC acquired a new position in Verizon Communications during the 1st quarter worth $29,000. Finally, Foster Dykema Cabot & Partners LLC bought a new position in shares of Verizon Communications in the third quarter worth $29,000. Institutional investors own 62.06% of the company's stock.

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).

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