Verizon Communications (NYSE:VZ) Shares Up 1% - Here's Why

Key Points

• Verizon Communications' stock price rose 1% to $42.80, despite a significant decline in trading volume, which was 86% lower than its average daily volume.
• Several analysts upgraded their ratings and target prices for Verizon, with Bank of America raising its target to $49.00 and majority ratings indicating a consensus of "Moderate Buy."
• The company announced a quarterly dividend of $0.6775 per share, offering an annualized yield of 6.35%, with dividends payable on August 1.

Verizon Communications Inc. (NYSE:VZ - Get Free Report)'s stock price was up 1% during trading on Tuesday . The stock traded as high as $42.74 and last traded at $42.80. Approximately 3,144,853 shares were traded during mid-day trading, a decline of 86% from the average daily volume of 22,016,336 shares. The stock had previously closed at $42.36.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on VZ shares. Arete Research upgraded shares of Verizon Communications to a "strong-buy" rating in a research note on Tuesday, July 8th. Wells Fargo & Company increased their target price on Verizon Communications from $42.00 to $43.00 and gave the company an "equal weight" rating in a research report on Thursday, July 10th. Bank of America boosted their price target on Verizon Communications from $45.00 to $49.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 22nd. JPMorgan Chase & Co. upped their price objective on Verizon Communications from $47.00 to $49.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 22nd. Finally, Scotiabank boosted their target price on shares of Verizon Communications from $48.50 to $49.00 and gave the stock a "sector perform" rating in a report on Wednesday, April 23rd. Eleven research analysts have rated the stock with a hold rating, seven have assigned a buy rating and three have issued a strong buy rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $47.35.

Verizon Communications Stock Performance

The firm's fifty day simple moving average is $42.82 and its 200 day simple moving average is $42.59. The company has a market capitalization of $179.97 billion, a PE ratio of 9.95, a price-to-earnings-growth ratio of 3.33 and a beta of 0.37. The company has a debt-to-equity ratio of 1.19, a current ratio of 0.64 and a quick ratio of 0.60.

Verizon Communications (NYSE:VZ - Get Free Report) last posted its earnings results on Monday, July 21st. The cell phone carrier reported $1.22 EPS for the quarter, topping the consensus estimate of $1.19 by $0.03. The firm 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%. Verizon Communications's revenue for the quarter was up 5.2% compared to the same quarter last year. During the same period last year, the company earned $1.15 earnings per share. On average, research analysts predict that Verizon Communications Inc. will post 4.69 EPS for the current year.

Verizon Communications Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 1st. Stockholders of record on Thursday, July 10th will be issued a dividend of $0.6775 per share. This represents a $2.71 annualized dividend and a dividend yield of 6.35%. The ex-dividend date is Thursday, July 10th. Verizon Communications's dividend payout ratio (DPR) is 63.17%.

Insider Activity

In other news, CEO Kyle Malady sold 9,000 shares of the business's stock in a transaction that occurred on Wednesday, May 7th. The stock was sold at an average price of $44.10, for a total value of $396,900.00. Following the completion of the sale, the chief executive officer directly owned 10,008 shares in the company, valued at $441,352.80. The trade was a 47.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Verizon Communications

A number of institutional investors and hedge funds have recently bought and sold shares of VZ. BridgePort Financial Solutions LLC acquired a new stake in shares of Verizon Communications during the 4th quarter worth approximately $381,000. Meyer Handelman Co. grew its holdings in shares of Verizon Communications by 7.4% during the 1st quarter. Meyer Handelman Co. now owns 1,110,948 shares of the cell phone carrier's stock worth $50,393,000 after purchasing an additional 76,083 shares during the period. Rempart Asset Management Inc. increased its position in shares of Verizon Communications by 52.8% during the 1st quarter. Rempart Asset Management Inc. now owns 310,390 shares of the cell phone carrier's stock worth $14,079,000 after purchasing an additional 107,200 shares during the last quarter. Treasurer of the State of North Carolina increased its position in shares of Verizon Communications by 1.0% during the 4th quarter. Treasurer of the State of North Carolina now owns 2,075,431 shares of the cell phone carrier's stock worth $82,996,000 after purchasing an additional 20,610 shares during the last quarter. Finally, Welch Group LLC raised its holdings in Verizon Communications by 5.9% in the 1st quarter. Welch Group LLC now owns 1,137,904 shares of the cell phone carrier's stock valued at $51,126,000 after buying an additional 63,474 shares during the period. 62.06% of the stock is currently owned by institutional investors and hedge funds.

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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