Verizon Communications (NYSE:VZ) Shares Up 1.2% - Here's Why

Key Points

• Verizon shares rose 1.2% to about $47.35 in midday trading, while trading volume was 21% below the average daily level.
• Analysts maintain a generally cautious outlook, with a consensus rating of “Hold” and an average price target of $50.84. Recent firms raised their targets to between $46 and $52.50.
• Verizon’s latest quarterly results exceeded EPS expectations ($1.30 versus $1.27), although revenue fell short of estimates and declined 0.7% year over year. The company also declared a quarterly dividend of $0.7075, representing an annualized yield of about 6.0%.

Verizon Communications Inc. (NYSE:VZ - Get Free Report)'s share price rose 1.2% during mid-day trading on Monday . The company traded as high as $47.81 and last traded at $47.3510. 22,996,561 shares changed hands during trading, a decline of 21% from the average daily volume of 29,195,646 shares. The stock had previously closed at $46.81.

Analyst Ratings Changes

VZ has been the topic of a number of recent analyst reports. Barclays lifted their price target on shares of Verizon Communications from $45.00 to $46.00 and gave the company an "equal weight" rating in a research report on Monday, July 27th. JPMorgan Chase & Co. upped their price objective on shares of Verizon Communications from $49.00 to $52.00 and gave the stock a "neutral" rating in a report on Thursday, April 30th. Scotiabank raised their target price on shares of Verizon Communications from $51.50 to $52.50 and gave the company a "sector outperform" rating in a research note on Monday, July 27th. Erste Group Bank reiterated a "hold" rating on shares of Verizon Communications in a report on Tuesday, May 5th. Finally, Royal Bank Of Canada boosted their target price on shares of Verizon Communications from $46.00 to $47.00 and gave the stock a "sector perform" rating in a research report on Monday, July 27th. Nine research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $50.84.

Verizon Communications Trading Up 1.2%

The company has a debt-to-equity ratio of 1.36, a quick ratio of 0.57 and a current ratio of 0.60. The company has a 50-day simple moving average of $45.32 and a 200 day simple moving average of $46.49. The company has a market capitalization of $197.72 billion, a P/E ratio of 12.33, a P/E/G ratio of 1.30 and a beta of 0.25.

Verizon Communications (NYSE:VZ - Get Free Report) last issued its quarterly earnings results on Friday, July 24th. The cell phone carrier reported $1.30 EPS for the quarter, topping analysts' consensus estimates of $1.27 by $0.03. The company had revenue of $34.25 billion during the quarter, compared to analyst estimates of $35.16 billion. Verizon Communications had a return on equity of 19.48% and a net margin of 11.64%.The company's quarterly revenue was down .7% compared to the same quarter last year. During the same period in the previous year, the company earned $1.22 earnings per share. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS. Sell-side analysts expect that Verizon Communications Inc. will post 5.03 earnings per share for the current year.

Verizon Communications Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Friday, July 10th will be issued a $0.7075 dividend. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.83 dividend on an annualized basis and a yield of 6.0%. Verizon Communications's dividend payout ratio is 73.70%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Oppenheimer & Co. Inc. grew its holdings in shares of Verizon Communications by 13.9% during the 2nd quarter. Oppenheimer & Co. Inc. now owns 631,758 shares of the cell phone carrier's stock worth $26,749,000 after purchasing an additional 77,303 shares in the last quarter. Vontobel Holding Ltd. raised its stake in shares of Verizon Communications by 64.1% in the second quarter. Vontobel Holding Ltd. now owns 1,644,554 shares of the cell phone carrier's stock valued at $69,630,000 after purchasing an additional 642,350 shares in the last quarter. Jennison Associates LLC lifted its position in Verizon Communications by 7.6% in the second quarter. Jennison Associates LLC now owns 1,243,533 shares of the cell phone carrier's stock worth $52,651,000 after purchasing an additional 88,073 shares during the period. Ranch Capital Advisors Inc. lifted its position in Verizon Communications by 7.4% in the second quarter. Ranch Capital Advisors Inc. now owns 96,936 shares of the cell phone carrier's stock worth $4,104,000 after purchasing an additional 6,711 shares during the period. Finally, Hohimer Wealth Management LLC boosted its stake in Verizon Communications by 4.1% during the second quarter. Hohimer Wealth Management LLC now owns 88,706 shares of the cell phone carrier's stock worth $3,756,000 after buying an additional 3,462 shares in the last quarter. Institutional investors own 62.06% of the company's stock.

About Verizon Communications

Verizon Communications Inc NYSE: VZ is a major U.S.-based telecommunications company that provides a broad range of communications and information services. Its operations span consumer and business markets, with core offerings that include wireless voice and data services, fixed-line broadband and fiber-optic services, and enterprise networking solutions. Verizon is headquartered in New York City and operates a nationwide wireless network that supports consumer subscribers as well as business and government customers.

The company's consumer products include mobile phone plans, unlimited data services, and Fios, its branded fiber-optic internet, television and voice service for homes and small businesses.

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