Verizon Communications (NYSE:VZ) Shares Gap Down - Here's Why

Key Points

• Verizon Communications shares gapped down from $44.38 to $42.98 before closing at $43.51, with a significant trading volume of nearly 9.7 million shares.
• Several analysts have raised their price targets for Verizon, with Goldman Sachs initiating coverage with a "buy" rating and a price objective of $49.00, contributing to an average price target of $47.65.
• The company announced a dividend increase to $0.69, with a dividend yield of 6.4%, and will be paid to stockholders of record on October 10th.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $44.38, but opened at $42.98. Verizon Communications shares last traded at $43.51, with a volume of 9,675,909 shares trading hands.

Wall Street Analyst Weigh In

VZ has been the topic of a number of research reports. Morgan Stanley increased their target price on shares of Verizon Communications from $47.00 to $48.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 22nd. Royal Bank Of Canada lifted their price target on shares of Verizon Communications from $45.00 to $46.00 and gave the company a "sector perform" rating in a research report on Tuesday, July 22nd. The Goldman Sachs Group initiated coverage on Verizon Communications in a report on Tuesday, September 2nd. They set a "buy" rating and a $49.00 price objective for the company. JPMorgan Chase & Co. increased their price objective on shares of Verizon Communications from $47.00 to $49.00 and gave the company a "neutral" rating in a research report on Tuesday, July 22nd. Finally, Wall Street Zen upgraded Verizon Communications from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. Three investment analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating and eleven have assigned a Hold rating to the company's stock. According to MarketBeat, Verizon Communications presently has an average rating of "Moderate Buy" and an average price target of $47.65.

Verizon Communications Stock Performance

The company has a quick ratio of 0.60, a current ratio of 0.64 and a debt-to-equity ratio of 1.19. The business has a 50 day simple moving average of $43.20 and a 200 day simple moving average of $43.37. The company has a market capitalization of $182.46 billion, a PE ratio of 10.10, a PEG ratio of 3.42 and a beta of 0.36.

Verizon Communications (NYSE:VZ - Get Free Report) last issued its earnings results on Monday, July 21st. The cell phone carrier reported $1.22 earnings per share for the quarter, topping the consensus estimate of $1.19 by $0.03. The business had revenue of $34.50 billion for the quarter, compared to analyst estimates of $33.47 billion. Verizon Communications had a return on equity of 19.61% and a net margin of 13.28%.The business's quarterly revenue was up 5.2% on a year-over-year basis. During the same period last year, the company posted $1.15 EPS. Verizon Communications has set its FY 2025 guidance at 4.636-4.728 EPS. Equities research analysts predict that Verizon Communications Inc. will post 4.69 EPS for the current fiscal year.

Verizon Communications Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, November 3rd. Stockholders of record on Friday, October 10th will be issued a $0.69 dividend. This represents a $2.76 annualized dividend and a dividend yield of 6.4%. This is an increase from Verizon Communications's previous quarterly dividend of $0.68. Verizon Communications's dividend payout ratio is currently 63.17%.

Institutional Investors Weigh In On Verizon Communications

Several hedge funds and other institutional investors have recently added to or reduced their stakes in VZ. 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 valued at $25,000 after purchasing an additional 243 shares in the last quarter. Garde Capital Inc. acquired a new stake in shares of Verizon Communications in the first quarter valued at about $26,000. 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 last quarter. Bulwark Capital Corp bought a new position in Verizon Communications in the 2nd quarter worth approximately $25,000. Finally, Advantage Trust Co boosted its stake 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 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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