Verizon Communications (NYSE:VZ) Shares Down 1.2% - Here's What Happened

Key Points

• Verizon Communications' stock price declined by 1.2% on Thursday, trading down to $43.70, after a drop from the previous close of $44.21.
• Analyst ratings show a consensus of "Moderate Buy" with an average target price of $47.65, indicating a generally positive outlook despite recent price drops.
• The company recently announced a quarterly dividend increase to $0.69 per share, with a yield of 6.3%, enhancing its appeal to dividend-focused investors.

Verizon Communications Inc. (NYSE:VZ - Get Free Report)'s stock price fell 1.2% during trading on Thursday . The company traded as low as $43.58 and last traded at $43.70. 16,112,167 shares were traded during mid-day trading, a decline of 23% from the average session volume of 20,921,303 shares. The stock had previously closed at $44.21.

Analysts Set New Price Targets

A number of research firms have recently commented on VZ. Royal Bank Of Canada lifted their price target on shares of Verizon Communications from $45.00 to $46.00 and gave the company a "sector perform" rating in a research report on Tuesday, July 22nd. JPMorgan Chase & Co. lifted their price target on shares of Verizon Communications from $47.00 to $49.00 and gave the company a "neutral" rating in a research report on Tuesday, July 22nd. The Goldman Sachs Group started coverage on shares of Verizon Communications in a research note on Tuesday, September 2nd. They issued a "buy" rating and a $49.00 price objective on the stock. Morgan Stanley raised their price objective on shares of Verizon Communications from $47.00 to $48.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 22nd. Finally, Arete Research upgraded shares of Verizon Communications to a "strong-buy" rating in a research note on Tuesday, July 8th. Three analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $47.65.

Verizon Communications Price Performance

The company has a debt-to-equity ratio of 1.19, a current ratio of 0.64 and a quick ratio of 0.60. The stock's 50 day simple moving average is $43.32 and its two-hundred day simple moving average is $43.39. The stock has a market cap of $183.54 billion, a price-to-earnings ratio of 10.15, a P/E/G ratio of 3.41 and a beta of 0.36.

Verizon Communications (NYSE:VZ - Get Free Report) last issued its 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 company had revenue of $34.50 billion for the quarter, compared to the consensus estimate of $33.47 billion. During the same quarter in the previous year, the company earned $1.15 EPS. The firm's revenue for the quarter was up 5.2% compared to the same quarter last year. Verizon Communications has set its FY 2025 guidance at 4.636-4.728 EPS. On average, analysts forecast that Verizon Communications Inc. will post 4.69 earnings per share for the current fiscal year.

Verizon Communications Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, November 3rd. Stockholders of record on Friday, October 10th will be paid a $0.69 dividend. The ex-dividend date is Friday, October 10th. This represents a $2.76 annualized dividend and a dividend yield of 6.3%. This is a boost from Verizon Communications's previous quarterly dividend of $0.68. Verizon Communications's dividend payout ratio is presently 63.17%.

Institutional Investors Weigh In On Verizon Communications

Several institutional investors and hedge funds have recently made changes to their positions in the company. Sargent Investment Group LLC lifted its position in Verizon Communications by 3.3% during the 1st quarter. Sargent Investment Group LLC now owns 7,125 shares of the cell phone carrier's stock worth $323,000 after buying an additional 230 shares in the last quarter. Crescent Sterling Ltd. lifted its position in Verizon Communications by 0.8% during the 1st quarter. Crescent Sterling Ltd. now owns 30,906 shares of the cell phone carrier's stock worth $1,402,000 after buying an additional 235 shares in the last quarter. Hudock Inc. lifted its position in Verizon Communications by 0.6% during the 2nd quarter. Hudock Inc. now owns 39,842 shares of the cell phone carrier's stock worth $1,724,000 after buying an additional 238 shares in the last quarter. Providence Capital Advisors LLC lifted its position in Verizon Communications by 0.3% during the 1st quarter. Providence Capital Advisors LLC now owns 80,178 shares of the cell phone carrier's stock worth $3,637,000 after buying an additional 240 shares in the last quarter. Finally, Bernard Wealth Management Corp. lifted its position in Verizon Communications by 81.0% during the 1st quarter. Bernard Wealth Management Corp. now owns 543 shares of the cell phone carrier's stock worth $25,000 after buying an additional 243 shares in the last quarter. 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).