Verizon Communications (NYSE:VZ) Stock Price Down 1.5% - What's Next?

Key Points

• Verizon Communications' stock price fell by 1.5%, ending at $42.44, with trading volume significantly lower than average.
• Several analysts have raised their price targets for Verizon, with an average target now at $47.35 and a consensus rating of "Moderate Buy."
• The company announced a quarterly dividend of $0.6775 per share, representing an annualized yield of 6.40% and a payout ratio of 63.17%.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) was down 1.5% on Monday . The company traded as low as $42.32 and last traded at $42.44. Approximately 4,930,579 shares traded hands during mid-day trading, a decline of 78% from the average daily volume of 22,051,240 shares. The stock had previously closed at $43.08.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on VZ shares. Morgan Stanley upped their price objective on Verizon Communications from $47.00 to $48.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 22nd. JPMorgan Chase & Co. upped 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. Bank of America increased their target price on shares of Verizon Communications from $45.00 to $49.00 and gave the stock a "neutral" rating in a report on Tuesday, July 22nd. Royal Bank Of Canada raised their price objective on shares of Verizon Communications from $45.00 to $46.00 and gave the stock a "sector perform" rating in a report on Tuesday, July 22nd. Finally, Scotiabank raised their target price on shares of Verizon Communications from $48.50 to $49.00 and gave the company a "sector perform" rating in a research note on Wednesday, April 23rd. Eleven analysts have rated the stock with a hold rating, seven have issued a buy rating and three have given a strong buy rating to the stock. Based on data from MarketBeat.com, Verizon Communications has an average rating of "Moderate Buy" and an average price target of $47.35.

Verizon Communications Stock Down 1.7%

The company has a market cap of $178.58 billion, a price-to-earnings ratio of 9.87, a PEG ratio of 3.33 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. The firm's fifty day simple moving average is $42.86 and its 200 day simple moving average is $42.56.

Verizon Communications (NYSE:VZ - Get Free Report) last issued its quarterly earnings results on Monday, July 21st. The cell phone carrier reported $1.22 earnings per share for the quarter, topping analysts' consensus estimates of $1.19 by $0.03. The firm had revenue of $34.50 billion during the quarter, compared to analysts' expectations of $33.47 billion. Verizon Communications had a net margin of 13.28% and a return on equity of 19.61%. Verizon Communications's quarterly revenue was up 5.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.15 EPS. Sell-side analysts predict that Verizon Communications Inc. will post 4.69 earnings per share for the current year.

Verizon Communications Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 1st. Investors of record on Thursday, July 10th will be paid a $0.6775 dividend. The ex-dividend date of this dividend is Thursday, July 10th. This represents a $2.71 dividend on an annualized basis and a yield of 6.40%. Verizon Communications's payout ratio is 63.17%.

Insider Activity

In related news, CEO Kyle Malady sold 9,000 shares of the firm's stock in a transaction that occurred on Wednesday, May 7th. The shares were sold at an average price of $44.10, for a total value of $396,900.00. Following the transaction, the chief executive officer owned 10,008 shares in the company, valued at approximately $441,352.80. This trade represents a 47.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 0.10% of the stock is owned by corporate insiders.

Institutional Trading of Verizon Communications

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Bernard Wealth Management Corp. raised its holdings 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 during the period. Bulwark Capital Corp acquired a new position in Verizon Communications during the second quarter worth $25,000. Cherry Tree Wealth Management LLC raised its stake in Verizon Communications by 71.8% during 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. Garde Capital Inc. bought a new position in Verizon Communications in the first quarter valued at about $26,000. Finally, 1 North Wealth Services LLC bought a new position in Verizon Communications in the first quarter valued at about $29,000. Institutional investors 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).

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