Verizon Communications (NYSE:VZ) Shares Up 1.1% - Should You Buy?

Key Points

• Verizon Communications shares increased by 1.1% to $43.98, although trading volume decreased significantly by 76% compared to the average.
• Recent upgrades by multiple analysts have led to a consensus rating of "Moderate Buy" with an average target price of $47.35.
• The company announced a quarterly dividend of $0.6775 per share, resulting in an annualized yield of 6.1% and a payout ratio of 63.17%.

Verizon Communications Inc. (NYSE:VZ - Get Free Report)'s share price shot up 1.1% during trading on Friday . The company traded as high as $44.03 and last traded at $43.98. 5,181,516 shares traded hands during mid-day trading, a decline of 76% from the average session volume of 21,455,078 shares. The stock had previously closed at $43.50.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the company. Wall Street Zen upgraded Verizon Communications from a "hold" rating to a "buy" rating in a research report on Saturday, July 26th. Royal Bank Of Canada boosted their price objective on Verizon Communications from $45.00 to $46.00 and gave the stock a "sector perform" rating in a research note on Tuesday, July 22nd. Arete Research raised Verizon Communications to a "strong-buy" rating in a research note on Tuesday, July 8th. Tigress Financial upped their target price on Verizon Communications from $55.00 to $56.00 and gave the company a "buy" rating in a research note on Monday, April 28th. Finally, JPMorgan Chase & Co. upped their target price on Verizon Communications from $47.00 to $49.00 and gave the company a "neutral" rating in a research note on Tuesday, July 22nd. Eleven analysts have rated the stock with a hold rating, seven have given a buy rating and three have issued a strong buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $47.35.

Verizon Communications Stock Up 1.9%

The firm has a market cap of $186.85 billion, a price-to-earnings ratio of 10.35, a P/E/G ratio of 3.37 and a beta of 0.36. The firm's 50 day moving average price is $42.67 and its two-hundred day moving average price is $42.91. 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 released its quarterly earnings results on Monday, July 21st. The cell phone carrier reported $1.22 EPS for the quarter, beating the consensus estimate of $1.19 by $0.03. Verizon Communications had a net margin of 13.28% and a return on equity of 19.61%. The business had revenue of $34.50 billion for the quarter, compared to analyst estimates of $33.47 billion. During the same period in the prior year, the business earned $1.15 earnings per share. The company's quarterly revenue was up 5.2% on a year-over-year basis. As a group, sell-side analysts forecast that Verizon Communications Inc. will post 4.69 earnings per share for the current fiscal year.

Verizon Communications Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 1st. Shareholders of record on Thursday, July 10th were given a dividend of $0.6775 per share. This represents a $2.71 dividend on an annualized basis and a dividend yield of 6.1%. The ex-dividend date was Thursday, July 10th. Verizon Communications's payout ratio is 63.17%.

Institutional Trading of Verizon Communications

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Bernard Wealth Management Corp. grew its position in Verizon Communications by 81.0% in the first quarter. Bernard Wealth Management Corp. now owns 543 shares of the cell phone carrier's stock worth $25,000 after acquiring an additional 243 shares in the last quarter. Garde Capital Inc. bought a new stake in Verizon Communications in the first quarter worth approximately $26,000. Cherry Tree Wealth Management LLC grew its position in Verizon Communications by 71.8% in the first quarter. Cherry Tree Wealth Management LLC now owns 584 shares of the cell phone carrier's stock worth $26,000 after acquiring an additional 244 shares in the last quarter. Bulwark Capital Corp bought a new stake in Verizon Communications in the second quarter worth approximately $25,000. Finally, Advantage Trust Co grew its position in Verizon Communications by 549.5% in the second quarter. Advantage Trust Co now owns 591 shares of the cell phone carrier's stock worth $26,000 after acquiring an additional 500 shares in the last quarter. 62.06% of the stock is currently owned by institutional investors.

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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