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

Verizon Communications Inc. (NYSE:VZ - Get Free Report)'s share price gapped down before the market opened on Tuesday . The stock had previously closed at $42.93, but opened at $41.99. Verizon Communications shares last traded at $42.20, with a volume of 6,841,347 shares traded.

Analysts Set New Price Targets

A number of research firms have recently issued reports on VZ. Scotiabank boosted their target price on Verizon Communications from $48.50 to $49.00 and gave the company a "sector perform" rating in a report on Wednesday. Argus raised shares of Verizon Communications to a "strong-buy" rating in a research note on Monday, January 27th. Royal Bank of Canada restated a "sector perform" rating and issued a $45.00 target price (up previously from $42.00) on shares of Verizon Communications in a research note on Tuesday, March 25th. Wolfe Research lowered shares of Verizon Communications from an "outperform" rating to a "peer perform" rating in a research note on Wednesday, March 12th. Finally, DZ Bank upgraded shares of Verizon Communications from a "hold" rating to a "buy" rating and set a $40.00 price objective for the company in a research report on Wednesday, January 29th. Nine research analysts have rated the stock with a hold rating, eight have given a buy rating and two have assigned a strong buy rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $47.35.

Verizon Communications Stock Down 2.1 %

The firm has a 50 day moving average of $43.64 and a two-hundred day moving average of $41.98. The stock has a market capitalization of $176.43 billion, a PE ratio of 10.12, a P/E/G ratio of 4.45 and a beta of 0.41. The company has a current ratio of 0.63, a quick ratio of 0.59 and a debt-to-equity ratio of 1.21.

Verizon Communications (NYSE:VZ - Get Free Report) last announced its quarterly earnings results on Tuesday, April 22nd. The cell phone carrier reported $1.19 earnings per share for the quarter, beating analysts' consensus estimates of $1.15 by $0.04. Verizon Communications had a return on equity of 19.80% and a net margin of 12.99%. The business had revenue of $33.50 billion during the quarter, compared to analysts' expectations of $33.31 billion. Equities research analysts anticipate that Verizon Communications Inc. will post 4.69 earnings per share for the current year.

Verizon Communications Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, May 1st. Shareholders of record on Thursday, April 10th will be given a dividend of $0.6775 per share. This represents a $2.71 dividend on an annualized basis and a yield of 6.47%. The ex-dividend date of this dividend is Thursday, April 10th. Verizon Communications's payout ratio is currently 65.46%.

Insider Transactions at Verizon Communications

In other Verizon Communications news, EVP Vandana Venkatesh sold 10,000 shares of the company's stock in a transaction dated Tuesday, February 25th. The shares were sold at an average price of $43.79, for a total value of $437,900.00. Following the transaction, the executive vice president now directly owns 14,459 shares in the company, valued at approximately $633,159.61. This represents a 40.88 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Kyle Malady sold 11,085 shares of Verizon Communications stock in a transaction dated Wednesday, January 29th. The stock was sold at an average price of $40.88, for a total transaction of $453,154.80. Following the sale, the chief executive officer now owns 14,590 shares of the company's stock, valued at approximately $596,439.20. This trade represents a 43.17 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 54,085 shares of company stock valued at $2,233,295 in the last ninety days. Corporate insiders own 0.10% of the company's stock.

Institutional Trading of Verizon Communications

Hedge funds have recently bought and sold shares of the company. Bernard Wealth Management Corp. grew its position in shares of Verizon Communications by 81.0% in the first 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 during the period. Garde Capital Inc. acquired a new position in Verizon Communications in the first quarter valued at $26,000. Cherry Tree Wealth Management LLC grew its holdings in shares of Verizon Communications by 71.8% during 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. Mainstream Capital Management LLC purchased a new stake in Verizon Communications during the fourth quarter worth approximately $28,000. Finally, EQ Wealth Advisors LLC acquired a new position in shares of Verizon Communications during the first quarter worth about $32,000. Institutional investors and hedge funds 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).