Verizon Communications (NYSE:VZ) Shares Up 1.1% - Still a Buy?

Key Points

• Verizon Communications' stock price increased by 1.1% to $38.83, with a trading volume up 26% compared to the average.
• Analysts have mixed ratings for Verizon, with target prices ranging from $46.00 to $50.50, highlighting recent downgrades from firms like BNP Paribas and Weiss Ratings.
• The company announced a quarterly dividend increase to $0.69, reflecting a 7.1% dividend yield, with the upcoming payment date set for November 3rd.

Verizon Communications Inc. (NYSE:VZ - Get Free Report)'s stock price shot up 1.1% on Friday . The stock traded as high as $38.92 and last traded at $38.83. 27,398,513 shares changed hands during trading, an increase of 26% from the average session volume of 21,728,568 shares. The stock had previously closed at $38.40.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on VZ. Scotiabank lifted their target price on shares of Verizon Communications from $50.00 to $50.50 and gave the company a "sector perform" rating in a report on Monday, October 6th. BNP Paribas downgraded shares of Verizon Communications from a "strong-buy" rating to a "hold" rating in a research note on Tuesday. Royal Bank Of Canada lifted their price target on shares of Verizon Communications from $45.00 to $46.00 and gave the stock a "sector perform" rating in a research note on Tuesday, July 22nd. Weiss Ratings downgraded shares of Verizon Communications from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday. Finally, Wall Street Zen downgraded shares of Verizon Communications from a "buy" rating to a "hold" rating in a research note on Friday, September 26th. Three research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and thirteen have assigned a Hold rating to the company. Based on data from MarketBeat.com, Verizon Communications currently has a consensus rating of "Moderate Buy" and a consensus price target of $47.41.

Verizon Communications Price Performance

The company's 50 day moving average is $42.94 and its 200-day moving average is $42.99. The stock has a market cap of $163.70 billion, a PE ratio of 9.05, a P/E/G ratio of 3.00 and a beta of 0.37. The company has a current ratio of 0.64, a quick ratio of 0.60 and a debt-to-equity ratio of 1.19.

Verizon Communications (NYSE:VZ - Get Free Report) last released 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 company had revenue of $34.50 billion during the quarter, compared to the consensus estimate of $33.47 billion. Verizon Communications had a net margin of 13.28% and a return on equity of 19.61%. The company's revenue was up 5.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.15 EPS. As a group, sell-side analysts predict that Verizon Communications Inc. will post 4.69 earnings per share for the current year.

Verizon Communications Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, November 3rd. Stockholders of record on Friday, October 10th will be given a $0.69 dividend. This represents a $2.76 annualized dividend and a dividend yield of 7.1%. The ex-dividend date of this dividend is Friday, October 10th. This is an increase from Verizon Communications's previous quarterly dividend of $0.68. Verizon Communications's payout ratio is presently 64.34%.

Institutional Investors Weigh In On Verizon Communications

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Sargent Investment Group LLC increased its position in shares of Verizon Communications by 3.3% in the 1st quarter. Sargent Investment Group LLC now owns 7,125 shares of the cell phone carrier's stock worth $323,000 after purchasing an additional 230 shares during the last quarter. Hudock Inc. increased its position in shares of Verizon Communications by 0.6% in the 2nd quarter. Hudock Inc. now owns 39,842 shares of the cell phone carrier's stock worth $1,724,000 after purchasing an additional 238 shares during the last quarter. Providence Capital Advisors LLC increased its position in shares of Verizon Communications by 0.3% in the 1st quarter. Providence Capital Advisors LLC now owns 80,178 shares of the cell phone carrier's stock worth $3,637,000 after purchasing an additional 240 shares during the last quarter. Wright Investors Service Inc. grew its position in shares of Verizon Communications by 1.2% during the 2nd quarter. Wright Investors Service Inc. now owns 21,255 shares of the cell phone carrier's stock valued at $920,000 after buying an additional 243 shares during the last quarter. Finally, McLean Asset Management Corp grew its position in shares of Verizon Communications by 2.9% during the 3rd quarter. McLean Asset Management Corp now owns 8,571 shares of the cell phone carrier's stock valued at $355,000 after buying an additional 243 shares during the last quarter. Institutional investors own 62.06% of the company's stock.

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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